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Read in Chinese

Speakers:

Ning Jizhe, deputy head of the National Development and Reform Commission (NDRC)

Hu Zucai, deputy head of the NDRC

Zhao Chenxin, secretary general of the NDRC

Chairperson:

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

Date:

March 8, 2021

Chen Wenjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today we are celebrating International Women's Day. We would like to extend our greetings to all women and wish you a happy holiday. Today, we are joined by three members of the Leading Party Members Group of the National Development and Reform Commission (NDRC). They are Mr. Ning Jizhe, deputy head of the NDRC; Mr. Hu Zucai, deputy head of the NDRC; and Mr. Zhao Chenxin, secretary general of the NDRC. As we know, works on reform and development are of crucial importance in implementing the new development philosophy, carrying out the guiding principles of the fifth plenary session of the 19th Central Committee of the Communist Party of China (CPC), and ensuring a good start of the 14th Five-Year Plan (2021-2025). Today, three NDRC officials will elaborate on the issue and take your questions. Now, let's give the floor to Mr. Ning Jizhe.

Ning Jizhe:

Ladies and gentlemen, friends from the media, good morning. On March 5, He Lifeng, head of the NDRC, did an interview and answered several questions that the media are most concerned about. Today, Mr. Hu, Mr. Zhao and I are happy to meet our friends from the media and take your questions. As today celebrates the International Women's Day, I would like to first extend our greetings to all women. I also want to thank our friends from the media for your attention, understanding, support, and help for our reform and development work.

Since last year, in face of a complicated and challenging international situation and formidable tasks in promoting reform, development and stability at home, especially with the severe impact of the COVID-19 pandemic, all regions and departments have been working under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, coordinating epidemic prevention and control with social and economic development, and making efforts to ensure stability on six fronts (employment, finance, foreign trade, foreign investment, domestic investment and market expectations) and maintain security in six areas (residential employment, people's livelihood, market entities, food and energy, stability of industrial and supply chains, and grassroots operations). China's economy saw improvements quarter by quarter and has been recovered in a stable manner. The major annual tasks of economic and social development have been completed in a satisfactory way. Meanwhile we attained a complete victory in the fight against poverty and scored decisive achievements in securing a full victory in building a moderately prosperous society in all respects.

Over the past few days, the draft outline of the 14th Five-Year Plan (2021-2025) for national economic and social development and the draft report on national economic and social development plan for 2021 have been delivered to the "two sessions" for deliberation. The draft report summarizes the implementation of last year's plan on national economic and social development, and further puts forward main targets, policy directions, and specific tasks for economic and social development in 2021. The draft report will be delivered to the National People's Congress (NPC) for deliberation and to the National Committee of the Chinese People's Consultative Conference (CPPCC) for discussion. Once approved by the NPC, the report will serve as an important foundation for us to carry out our work concerning economic and social development.

The year 2021 has been a rather significant year in China's modernization. It marks the start of the 14th Five-Year Plan and the embarkment of a new journey to build China into a modern socialist country in all respects. Thus, works on reforming and development are very important. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core and in accordance with the requirements of the Report on the Work of the Government delivered by Premier Li Keqiang, we will act on the general principle of pursuing progress while ensuring stability, ground our efforts in the new development stage, apply the new development philosophy, and create a new pattern of development. We will work to pursue high-quality development, resolutely promote reform and advance opening-up. We will consolidate and expand the achievements of the COVID-19 response and economic and social development, ensuring better coordination in pursing development and upholding security. We will work to ensure stability on six key fronts and maintain security in six key areas, implement macro policies in a systemic and targeted way, and keep major economic indicators within an appropriate range, in a bid to ensure a good start of the 14th Five-Year Plan and commemorate the centenary of the CPC with outstanding achievements in development.

That's all for my introduction. Next, Mr. Hu will brief you on the draft outline of the 14th Five-Year Plan (2021-2025) for national economic and social development.

Hu Zucai:

Friends from the media, good morning. Next, I will brief you on the draft outline of the 14th Five-Year Plan (2021-2025) for national economic and social development.

The 14th Five-Year Plan period is the first five years after China has achieved the first centenary goal of establishing a moderately prosperous society in all respects and embarked on a new journey towards the second centenary goal of building China into a modern socialist country in all respects. The CPC Central Committee and the State Council have attached great importance on the formulation work of the 14th Five-Year Plan. The fifth plenary session of the 19th CPC Central Committee deliberated and adopted the Recommendations of the CPC Central Committee for Formulating the 14th Five-Year Plan for Economic and Social Development and Long-Range Objectives through the Year 2035 , and this has set the direction and provided the basic principles for the formulation work of the draft outline. General Secretary Xi Jinping has delivered important speeches and made important instructions many times on the formulation and publishing of the 14th Five-Year Plan outline. Premier Li Keqiang has also presided over many meetings to deploy the research efforts.

In accordance with the deployments made by the CPC Central Committee and the State Council, the NDRC has been working with relevant parties and effectively advanced the formulation work since 2019. After the conclusion of the fifth plenary session of the 19th CPC Central Committee, the NDRC has fully implemented the guiding principles of the recommendations of the CPC Central Committee, and finished the draft outline based on summarizing and evaluating the 13th Five-Year Plan. During the formulation process, the NDRC combined both target-oriented and problem-oriented approaches and integrated top-level designs by drawing on public opinion. The NDRC organized research on more than 200 major issues, listened to both experts' opinions and those from all regions and government departments, and collected measures and suggestions from all sectors of the society. This means the draft outline fully represents the aspirations of the society, the wisdom of the public, the opinions of experts, and the experiences of those at the grassroots level.

The draft outline follows the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, specifies and quantifies major targets and key tasks of economic and social development during the 14th Five-Year Plan period, and draws a blueprint of China's embarkment on a new journey to build itself into a modern socialist country in all respects. It is a common action plan for Chinese people of all ethnic groups. The draft outline has 19 parts, 65 chapters, and 192 sections, with approximately 74,000 Chinese characters. It consists of three parts. The first part elaborates on the development environment, guiding principles, and main targets. The second part contains strategic tasks and measures from 17 aspects. The third part is about guaranteeing the implementation of the outline. In general, the draft outline has four highlights.

First, the draft outline represents the core value of the three new fronts. The draft outline was formulated by analyzing China's new development stage of building itself into a modern socialist country in all respects. It applies the new development philosophy in a complete, precise, and comprehensive manner. It also reflects China's accelerated pace in creating a new pattern of development with domestic circulation as the mainstay and domestic and international circulations reinforcing each other. It demonstrates China's efforts in promoting high-quality development. The draft outline shows the full understanding and the systemic implementation of the requirements of the three new fronts.

Second, the draft outline has made special efforts to ensure the dovetail of the two centenary goals. The draft outline compiles long-range objectives through the year 2035, focuses on the current tasks of the 14th Five-Year Plan period, and centers on the requirements of making new breakthroughs on six fronts. It has set 20 major targets in five categories including the economy, innovation-driven development, public welfare, green ecology, and security. It not only pays attention to the implementation of the new development philosophy and fully correlates with a set of indicators of high-quality development, but also fully reflects the people-centered development philosophy and works to bring a greater sense of gain to the public. The targets are set in a scientific and reasonable manner, so that they can be both encouraging and practical; meanwhile there is room left to deal with uncertainties.

Third, the draft outline highlights the requirements of ensuring coordination in pursing development and upholding security. It remains mindful of worst-case scenarios and coordinates between development and security. For the first time, the draft outline has set a section for safe development, which sets specific arrangements for improving the national security system and capacity-building, and guaranteeing the security of food, energy, resources, finance, and more. 

Fourth, the draft outline highlights support towards the implementation of major strategic tasks. In accordance with the needs of the nation and the expectations of the people, the draft outline has set 20 special sections and put forward 102 major projects. This has provided strong support for the implementation of the targets listed in the draft outline. 

The draft outline is currently under deliberation at the fourth session of the 13th National People's Congress (NPC). The NDRC will proactively collect opinions from NPC deputies and CPPCC members, and quickly revise and improve the draft outline. As the blueprint has been drawn and the horn of inspiration blown, we are convinced that under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core and with the hard work of Chinese people of all ethnic groups, there is no doubt that the blueprint will become reality, and new and big steps will be made in terms of China's economic and technological strength, national strength, and people's livelihood. Thank you.

Chen Wenjun:

Thank you, Mr. Ning and Mr. Hu, for your introduction. Now the floor is open for questions. Please identify your news outlets before asking questions.

CCTV:

This year, the macro economy still faces the risks of inbound Covid-19 cases and uncertainties of the external economy. How do you view these issues? What kind of policies and reform measures will be taken to support the economic recovery and ensure the realization of economic and social development targets this year? Thanks. 

Ning Jizhe:

This is a good question. First of all, it should be noted that China's economic performance during the first two months of 2021 has continued the trend of steady recovery seen since the second quarter of last year. Production indicators show that, during the first two months of this year, overall electricity generation and rail freight volume increased by 24.2% and 16.5% respectively. Demand indicators show that the combined sales of retail and catering enterprises increased 28.7% year-on-year during this year's Spring Festival holiday, and 4.9% from the 2019 Spring Festival holiday, which was before the Covid-19 outbreak. A total of 12.265-billion-yuan cinema tickets were sold this February, setting a global single-market box office record for a single month. After the Spring Festival, the rate of investment projects starting and resuming and construction companies starting work were higher than in previous years. Import and export figures were released yesterday. Total renminbi-denominated imports and exports from January to February up 32.2% year-on-year, with exports up 50.1%. In terms of economic outlook indicators, the manufacturing purchasing managers' index (PMI) and the non-manufacturing business activity index stood at 50.6% and 51.4% respectively in February, marking the 12th consecutive month the indexes were above the 50-point mark indicating economic expansion. This shows that the economy has maintained its expansionary trend.

In the meanwhile, like you said, to ensure continuous and stable economic recovery, China still faces risks and challenges. The Covid-19 epidemic is still spreading around the globe. The world economic situation is severe and complex, and the number of unstable and uncertain factors has increased. Also the foundation for domestic economic recovery is not yet solid. Consumption is still constrained, the growth of investment is not sustainable, and micro, small and medium-sized enterprises and self-employed individuals still face many difficulties. But we should view many of these domestic economic problems as problems existing only during the recovery period and can be resolved through development. As for the inbound risks you mentioned, we need to respond to them in an active and proper manner. We will counteract the uncertainties of the complex external environment by increasing internal certainty through active efforts. 

We all see that the draft report on development plan has made clear the major targets of social and economic development for 2021, such as a GDP growth of over 6%, over 11 million new urban jobs, a surveyed urban unemployment rate of around 5.5% and a CPI increase of around 3%. These targets are based on consideration of economic recovery, impacts of Covid-19 on the economic trajectory, and the balance and connection between different years. They are in line with the principles of range-based regulation and a prudent approach to development. We have the confidence that with the support of macro policies and the joint efforts of market entities, we will achieve the social and economic development targets this year. I will highlight policies and measures in the following six aspects:

First, we will work to ensure that macro policies provide necessary support to the economy. To promote steady, healthy and sustainable economic development, we must ensure continuity, stability and sustainability of macro policies. We should avoid a sudden turn in policies and adjust and improve policies as situations change in a timely fashion. We will continue to pursue a proactive fiscal policy. In 2021, we will arrange more than 25 trillion yuan in expenditure in the general public budget, up by 1.8% over the previous year. We will raise the general transfer payments from central to local governments by 7.8%, and increase transfer payments for equalizing access to basic public services by over 10%. We will continue to pursue a prudent monetary policy and enable the increases in money supply and aggregate financing to be generally in step with the nominal GDP growth. This year, we may see a relatively higher nominal GDP growth, which requires us to maintain reasonable and ample liquidity. We will continue to implement the employment-first policy. This year, the target for new urban jobs is two million more than that of last year. For companies that do not cut jobs or only cut a small number of jobs, we will continue to provide adequate fiscal and financial policy support and lower premiums for unemployment insurance and work injury compensation insurance.  

Second, we will continue to implement preferential policies for enterprises to address their problems. Enterprises are the source of economic growth. Ensuring the stability of the 140 million market entities means that we can keep the fundamentals of the economy stable. Regarding tax-cuts, we will continue to implement systematic tax-cut policies, extend the duration of several temporary policies, and adopt new structural tax reduction measures. Regarding financial policies, we will continue the policy of allowing micro and small businesses to defer principal and interest repayments on inclusive loans and channel more bank funds to micro and small businesses and self-employed individuals. Inclusive loans to micro and small businesses by large commercial banks will increase by over 30%. We will provide targeted support to enterprises and industries enduring a protracted hit from Covid-19. We will continue to guide the financial sector to give more to the real economy. To reduce costs, electricity rates for general industrial and commercial businesses will be further reduced. Average rates for broadband and dedicated internet access services for small and medium-sized enterprises will be lowered by another 10%. The port development fee will be abolished. Airlines' contributions to the civil aviation development fund will be cut by 20%. Governments in localities that were hit hard by Covid-19 will be encouraged to lower or waive rentals on state-owned property for micro and small businesses and self-employed individuals in the service sector.

Third, we will make good use of reform policies. Reform is both a driving force and an integral part of the macro policy. Achieving steady growth must rely more on reform and innovation as the fundamental driving force. Reform policies should aim to energize market entities. We will uphold the "two no irresolutions" principle (no irresolution about consolidating and developing the public sector and no irresolution about encouraging, supporting, and guiding non-public sector development). We will implement the action plan for building a high-standard market system, and deepen reforms to streamline administration and delegate power, improve regulation, and upgrade services. We will also deepen the reforms of enterprises, fiscal, taxation, financial and price systems. Opening-up policies should be more supportive to keep the fundamentals of foreign trade and investment stable and ensure the stability of trade volume and market entities. We will stabilize the volume and improve the quality of imports and exports and maintain a basic equilibrium in the balance of payments. We will further the development of pilot free trade zones, the Hainan Free Trade Port and other highlands for opening up. We will leverage the massive domestic market to promote international cooperation and promote a positive interplay between the domestic circulation and international circulation. 

Fourth, we will make clear the directions for sci-tech development and industrial policies. Science and technology are the driving force of development, and industry is the vital foundation for development. We will strengthen scientific and technological self-reliance, vigorously enhance scientific and technological innovation capabilities, significantly increase spending in basic research, and effectively achieve breakthroughs in core technologies in key areas. Meanwhile, we will further strengthen international cooperation in the field of science and technology. We will advance the supply-side structural reform and make full efforts to revitalize and promote the real economy, upgrade the industrial foundation and modernize industrial chains. A major campaign to develop advanced manufacturing industry clusters will be launched. The proportion of R&D expenses covered by the additional tax reduction policy will be raised to 100 percent for manufacturing enterprises. We will make a full refund of incremental VAT credits to advanced manufacturing enterprises on a monthly basis, and raise the proportion of loans to the manufacturing sector. We will implement a series of policies to promote high-quality development of the integrated circuit industry and the software industry in the new era. Pilot projects that integrate the advanced manufacturing industry and the modern service industry will be carried forward. 

Fifth, we will focus on demand-side regulation. To foster a new development paradigm, we must firmly expand domestic demand as a strategic priority, accelerate the cultivation of a complete domestic demand system, promote the coordinated development of domestic and external demand, and give full play to the fundamental, critical and supportive role of consumption, investment and exports on economic growth. I'd like to talk a little bit more about consumption. To expand consumption, we must stabilize and create more jobs and ensure steady increases in people's income. In the meanwhile, we must notice that per capita consumer spending dropped by 4% last year, lower than the real growth rate of 2.1% of per capita disposable income of Chinese residents. This was mainly due to reduced contacts and gatherings because of the epidemic. Therefore, to further tap consumption potential, we must maintain epidemic prevention and control measures on a continuing basis and promote consumption at the same time. We also need to expand the consumption of goods, including commodity consumption, service consumption, health consumption, information consumption, online consumption and green consumption. To promote auto consumption, we will carry out policies to encourage auto consumption in rural areas and auto trade-ins. We will guide local governments to ease purchase restrictions for new-energy vehicles and issue more license plates. These measures will spur auto consumption and lead to healthy and orderly development of new-energy vehicles. In 2020, the output of new-energy vehicles hit 1.456 million, up by 17.3% over the previous year. In regards to housing, we will increase the supply of government-subsidized rental housing and shared ownership housing to address the housing difficulties of the people, especially new urban residents and young people.

Sixth, we will push forward green, low-carbon and circular development. Strengthening protection of the environment is favorable for fostering new areas of high-quality development. To achieve peak carbon emissions and carbon neutrality is an opportunity to step up the upgrading of industry and energy structures. In 2020, the installed power generating capacity of renewable energy stood at 934 million kw and we will further increase it. While increasing the capacity, we will also address the problem of idle capacity and improve storage capacity to achieve coordinated and orderly development. We will promote the cultivation of energy-saving and environmental protection industries worth of trillions of yuan. The green transformation of major industries and areas will be carried forward. Thus, we will realize the targets of a drop of around 3% in energy consumption per unit of GDP and a continued reduction in the discharge of major pollutants.

The Cover:

The Central Economic Work Conference made it clear that China will accelerate the construction of major projects and strengthen the sustainability of investment growth in 2021. What specific measures will be taken to expand rational investment this year? What are the considerations and plans for supporting new infrastructure development? Thank you.

Ning Jizhe:

Last year, China became the only major economy to see positive growth, in which investment played a big role. In order to keep the economy operating within the proper range this year, we still need to give further play to the key role of investment, strengthen areas of weakness, create more investment opportunities, boost investment growth, and appropriately expand effective investment. Measures will be taken in the following five aspects: 

First, we will give play to the leading role of government investment. In 2021, 610 billion yuan will be earmarked for investment in the central government budget, an increase of 10 billion yuan from the previous year. It will be used to mobilize resources to deal with major, difficult, and urgent issues at the state level. We will actively support the renovation of old urban communities and construction in key sectors involving agriculture, rural areas, farmers, water conservancy, major infrastructure and national strategy, social undertakings, and ecological progress. Meanwhile, 3.65 trillion yuan of special local government bonds will be issued for transport, energy, agriculture, forestry, water conservancy, eco-environmental protection, social undertakings, logistics, municipal public utilities, industrial parks, and other infrastructure and public service projects that will yield a certain degree of revenue.

Second, we will give more play to the role of investment in strengthening areas of weakness and adjusting structures. Investment today will be the supply of tomorrow. We will accelerate efforts to strengthen weaknesses in such areas as infrastructure, municipal public utilities, agriculture and rural areas, public security, eco-environmental protection, public health, material reserves, disaster prevention and mitigation, as well as in ensuring people's wellbeing. We will expand investment in equipment upgrading and technological upgrading in the manufacturing sector. Last year, investment in high-tech industries grew 10.6% year on year, 7.7 percentage points higher than overall investment. This year, we will further strengthen macro guidance and coordinate industry layouts to focus on energy-efficient and environmentally-friendly sectors as well as new-generation information technology, biotechnology, and new energy. We will also increase investment in high-tech and strategic emerging industries.

Third, we will focus on new infrastructure, new urbanization initiatives, and major projects. In terms of new infrastructure, we will roll out the 14th Five-Year Plan for new infrastructure construction to boost the development of the digital economy, expand the application of 5G, as well as speed up the construction of industrial internet and data centers. As for new urbanization initiatives, we will launch an urban renewal campaign to advance the renovation of old urban communities in all aspects and promote urbanization mainly in county towns. Regarding major projects, we will expedite the progress of major projects on time, including the Sichuan-Tibet railway, the Xining-Chengdu railway, and the Dateng Gorge water conservancy project.

Fourth, we will boost the development of private investment. Last year, private investment maintained a good momentum in recovery. It registered a positive growth, accounting for 54.9% of the total investment and showing great potential. This year, we will take measures in the following three aspects: First, we will further mobilize the enthusiasm of private investment, continue to open up market access for private enterprises, support their innovative development, and encourage private capital to participate in the construction of new infrastructure, new urbanization initiatives, and major projects as well as projects to strengthen areas of weakness. Second, we will further strengthen the capacity of private investment, guide banks to increase credit support for private enterprises, and implement cost-cutting policies for micro, small, and medium-sized enterprises. Third, we will further explore new ways for private investment, extend the public-private partnership (PPP) model to more areas in a well-regulated way, and steadily carry out trials for real estate investment trust funds (REITs) in infrastructure projects to put existing infrastructure assets to good use.

Fifth, we will build up the number of projects in reserve and strengthen the guarantee of vital factors including funds. The work will focus on the following aspects: First, we will stay committed to the principle that projects are well-planned before investment. This year, we will make efforts to identify major construction tasks, plan and reserve a group of major projects which will strengthen the economic foundation, increase functions and promise long-term benefits, and accelerate the progress of preliminary work on those projects. Secondly, we will stay committed to the principle that funds follow projects. We will expedite the issuance of central budgetary investment plan and organize local governments to make high-quality preparations for projects funded by special bonds. Third, we will stay committed to the principle that production factors go with projects. We will enhance communication and coordination between departments and guarantee the land used for major national projects. Thank you.

China Daily:

We know that topics involving education, medical care, elderly care, and childcare are closely related to people's lives and thus are among their concerns. What new measures can be expected in this year's draft outline of the 14th Five-Year Plan to address public worries and concerns? Thank you. 

Hu Zucai:

The five-year plan is as much a matter of state as of every household. The draft outline follows the people-centered development philosophy; sets out the overarching goal of meeting the people's ever-growing needs for a better life; focuses on well-rounded human development and the improvement of people's lives; stresses to ensure that public services are inclusive, meet essential needs and ensure basic living standards for people in difficulty; steps up efforts to promote equal access to basic public services, and puts forward a series of development goals, indicators, policies, and measures to ensure that the fruits of development will benefit all the people more equitably and provide a higher-quality and higher-level of access to childcare, education, employment, medical services, elderly care, housing, and social assistance.

In terms of major indicators, those indicators related to people's livelihoods are the largest. Seven of the 20 major indicators in the draft outline concern people's livelihoods, accounting for more than a third of the total -- the highest of all past five-year plans. These indicators cover employment, income, education, medical care, elderly care, and childcare, and other areas of people's livelihoods. This fully demonstrates that we have placed greater importance on improving people's wellbeing.

Regarding employment and income, we will mainly step up efforts to offer more and better job opportunities and make steady progress to raise personal incomes. Employment is the cornerstone of wellbeing, while income is its wellspring. We will implement an employment-first strategy and give top priority to promoting employment in economic and social development. We will offer more job opportunities; improve the employment support system for key groups such as college graduates, rural migrant workers, and demobilized military personnel; assist people with disabilities, zero-employment families, and other groups facing difficulty in securing work; and keep the surveyed urban unemployment rate within 5.5%. We will improve the lifelong skills training system and continue to launch vocational skills training programs on a large scale to tackle structural unemployment. We will give special attention to raising the income of low-income groups and expanding the middle-income population. We will ensure growth in personal income that is basically in step with economic growth, and improve the mechanism for reasonable wage increases. We will raise the proportion of labor remuneration in primary distribution, improve the distribution mechanism to allow innovation to have its due share of income, and increase property income through multiple channels.

In terms of education, we will develop a quality education system. We will stay committed to giving priority to developing education to make it fairer and better. We will continue to improve the conditions of schools in counties with weak education foundations, places with high population inflow, and rural areas. We will build and renovate more than 4,000 primary and middle schools to promote quality, balanced and integrated development of urban and rural compulsory education. We will speed up efforts to strengthen weaknesses in pre-school education, build and renovate 20,000 kindergartens, offer more than 4 million places in government-funded and privately-run non-profit kindergartens. We will endeavor to deal with difficulties brought on by expensive fees and the shortage of preschools, and raise the gross enrollment ratio for preschool education to 90%. We will consolidate and improve the level of universal senior high school education to increase its gross enrollment ratio to over 92%. We will launch an initiative to improve the quality of modern vocational and technical education, develop a group of high-level vocational and technical colleges and training bases as well as relevant disciplines to cultivate various types of skilled craftsmen across the country. We will develop world-class universities and disciplines for different categories, encourage some regular undergraduate institutions to shift their focus toward providing applied education, support the development of 100 undergraduate institutions in the central and western regions of China, and raise the gross enrollment ratio for higher education to 60%.

With regard to healthcare, we will work to build a Healthy China in all respects. We will develop a strong public health system to improve our ability to respond to public health emergencies. We will improve the medical service system in which public medical institutions play a major role; support provinces with weak medical resources to build regional medical centers; and improve the capacity of community-level medical services with a focus on county-level hospitals. We will improve the quality and scale of medical personnel training and increase the number of certificated (assistant) doctors to 3.2 per 1,000 people and registered nurses to 3.8 per 1,000 people. We will improve the medical insurance system for the entire population, advance overall planning of basic medical insurance schemes at the provincial level, improve medical insurance and assistance systems for major diseases, ensure that medical expenses can be settled where they are incurred via basic medical insurance accounts, and actively advance the reform of centralized procurement and uses of medicine and consumables to reduce the burden of medical care for the public.

In terms of social security, the main aims are to help those most in need, to build a tightly woven safety net, and to build the necessary institutions. China has built the largest social security system in the world. During the 14th Five-Year Plan period, we will further improve the multi-tiered social security system, increase the basic old-age insurance coverage to 95%, realize the unified national management of old-age insurance funds, promote the provincial-level unified management of insurances for unemployment and work-related injuries, relax insurance eligibility for people with flexible employment, and ensure the full coverage of social insurance for all eligible population. We will gradually improve the basic pension standards for urban and rural residents, and promote the transfer and continuation of social insurance. At the same time, we will strengthen social assistance, ensure the basic needs of people in difficulties, and promote the development of charity.

In terms of senior and child care, we will mainly improve the service system for the elderly and the young. It is expected that China will enter the stage of a moderately aging society during the 14th Five-Year Plan period. The draft outline responds to social concerns by actively responding to population aging as a national strategy. We will vigorously develop public-interest services for elderly care, and build an elderly care service system with the coordination of services based on community and home, while promoting the integration of medical care and health care. We will improve elderly care service network based on community and home, promote the transformation of public facilities suitable for elderly people, take various measures to expand the supply of beds in elderly care institutions, and improve the service capacity and level. The proportion of nursing beds will be increased to 55%. We will develop an inclusive child care service system and boost the number of nurseries for children under 3 years old from 1.8 to 4.5 per 1,000 people. We will support businesses, public institutions, social organizations and other social forces to provide public-interest child care services, encourage kindergartens to develop integrated services, and improve the quality and level of child care and education. Thank you.

Phoenix TV:

We have seen some positive achievements in the construction of new urbanization in recent years, including granting urban residency to 100 million people from rural areas and other permanent residents without local household registration, and the increase of urbanization rate to more than 60%. My question is, what targeted measures are proposed in the draft outline to implement the new urbanization strategy and improve the quality of new urbanization? Also, how will the implementation of these measures be ensured? Thank you.

Hu Zucai:

Urbanization is the only path to modernization, the largest source of China's domestic demand potential and strong domestic market, and an important support for building a new development pattern. China has made major historic achievements in constructing new urbanization since the 18th CPC National Congress. The integration of people from rural areas into the city has accelerated. We have raised the percentage of permanent urban residents to 60% of the population, and the percentage of urban permanent residents with local household registration to 45%. The goal of granting urban residency to 100 million people from rural areas and other permanent residents without local household registration was met. The "19+2" pattern of city clusters has been basically established and cities have taken on a new look.

During the 14th Five-Year Plan period, China's urbanization rate will be between 60% and 70%, which is still a middle and late stage of rapid development, and also a key period of China's comprehensive transformation. We should adhere to the path of new urbanization with Chinese characteristics, deeply promote the new urbanization strategy with a people-centered approach, and comprehensively improve the quality of urbanization development.

First, we will deepen reforms of the household registration system, and move faster to grant permanent urban residency to people who move to cities from rural areas in an orderly manner. At present, there are still more than 200 million people from rural areas and live in cities without permanent urban residency. Among those who have registered as permanent residents, some have not fully integrated into the city. Giving permanent urban residency to people who move to cities from rural areas is still the primary task of new urbanization. We will continue to prioritize household registration of existing residents and at the same time grant urban residency to more new residents. Moreover, we will advance the reform of the household registration system and the full coverage of basic public services, and move faster to integrate urban residents from rural areas into cities. 

On one hand, we will continue to relax restrictions on household registration and grant urban residency to those who would like to settle down in cities. We will relax restrictions on permanent urban residency except in some megacities. We will try out a household registration system based on permanent residence, and move faster to grant permanent urban residency to people from rural areas with stable employment and residence in the city. Cities with a permanent resident population of under 3 million people should completely abolish restrictions on household registration, ensuring that people from rural areas, either local or non-local, share the same standards in applications of household registration. The eligibility for household registration in cities with a permanent resident population of 3-5 million will be relaxed in an all-round manner. Megacities with a permanent resident population of more than 5 million should improve their point-based household registration system, simplify the point-based measure, and focus on two parameters – social insurance records and number of years living in the city. Cities where conditions are mature are encouraged to cancel the annual quota on permanent urban residency. At the same time, we should safeguard the ownership rights, contract rights and land management rights of those from the countryside who settle down in cities.

On the other hand, we will promote the equal access of permanent residents to basic urban public services, achieving "equal treatment and sufficient supply." We will improve the basic public service provision mechanism based on residence permit, residency years and other conditions, encourage local governments to provide more basic public services and convenience, improve the level of compulsory education in urban areas, housing support and other services for residence permit holders, and allow non-registered residents to enjoy basic public services equal to registered residents on a gradual basis.

At the same time, we will speed up work on granting permanent urban residency to people who move from rural to urban areas, and introduce policies for making both the transfer payments and the land designated for urban development granted to the government of a local jurisdiction conditional upon the number of people with rural household registration who are granted permanent urban residency in that jurisdiction.

Second, we will optimize the structure of urbanization and promote the coordinated development of large, medium and small cities.

We should promote development of megacities toward a leaner and healthier mode. The COVID-19 epidemic has exposed various problems in megacities such as high population density and poor risk resistance capacity. We should focus on three aspects to solve these problems. First, we should delimit and stick to the boundary of urban development and be cautious in removing counties and establishing districts. Second, we should relieve non-core functions of cities in an orderly manner, guide the over-concentrated resource elements to transfer to other regions in a gradual and orderly manner, and properly reduce development intensity and population density of central urban areas. Third, we should promote synergized development of big cities with nearby small- and medium-sized cities and suburban new towns. We will cultivate and develop a number of modern metropolitan areas by better integrating transportation.

Large- and medium-sized cities should improve their functions. We should give full play to the advantages of relatively low comprehensive cost in large- and medium-sized cities that can help transfer industries and relieve functions of super-large cities, and improve the service function and quality of life in cities.

Counties should speed up to make up for their weaknesses, promoting urbanization with counties as important carriers. Counties occupy an important position, serving hundreds of millions of rural dwellers and are an important support for expanding domestic demand. In most areas, counties are still the first choice for rural residents seeking medical treatment, obtaining employment and enrolling their children in school. At present, there are still many weaknesses in the construction of counties. We must promote urbanization construction with counties as important carriers. Since last year, we have been adjusting measures according to local conditions and giving targeted guidance, speeding up the improvement of their weaknesses of counties and large townships, improving top-level design, and strengthening financial support. During the 14th Five-Year Plan period, we will support the construction of counties with better foundation in the east of the country, focus on supporting the county construction in central, western and northeast regions, give support to the construction of counties in major agricultural producing areas and key ecological function areas, and strengthen the construction of border towns. We will actively promote the upgrading and capacity expansion of 17 facilities in the four major areas of public services, environmental sanitation, municipal public utilities and industrial development, and enhance the comprehensive carrying capacity and governance capacity of counties.

Third, we will comprehensively improve the quality of cities and promote livability and employability. We will also promote measures to fix shortfalls in infrastructures such as public transport, parking lots and charging stations, of which there is strong demand from the public; strengthen the construction of flood control and drainage systems; promote urban waterlogging controls; and complete the renovation of 219,000 old urban residential communities built before the end of 2000. We will also use digital technology to improve urban governance, so that urban residents can enjoy a higher quality of life.

Reuters:

How would you like to implement the reforms regarding the new "dual circulation" development paradigm during the 14th Five-Year Plan period? Why is the economic growth target for 2021 set at above 6%? What is the consideration for it? Why didn't you set an economic growth target for the 14th Five-Year Plan period? In 2021, what should we do to prevent asset bubbles, financial risks and debt risks brought about by the easy monetary policies rolled out last year? Thank you. 

Zhao Chenxin:

Thank you for your question. I think, according to what you've asked, your major concern is about reform. The first reporter also asked about reform. People are really concerned about it. Indeed, we should strive to reform with relentless efforts. As we enter the 14th Five-Year Plan period, we should give further play to the key role of deepening overall reform. At the recent 18th meeting of the central committee for deepening overall reform , General Secretary Xi Jinping emphasized five priorities for deepening reforms, including implementing a high-level of self-reliance and self-improvement, facilitating economic circulation, expanding domestic demand, as well as carrying out high-level opening-up and promoting comprehensive green transformation. These five priorities are very important. They are the fundamental principles that we will follow in future reforms.

You also asked about the macro control policies to balance economic growth while preventing risks. My understanding is as follows. Actually, Mr. Ning has talked about it. We should, on the one hand, have bottom-line thinking and prepare for potential risks, on the other, we should also strengthen follow-up analysis, make adjustment according to circumstances, and respond in a rapid, targeted and scientific manner. Additionally, we should unswervingly advance reform, so as to defuse risks and challenges. I would like to introduce the major reforms that the National Development and Reform Commission will advance this year in five aspects:

First, we will step up efforts to stimulate the vitality of various market entities. In term of the state-owned economy, the focus will be on optimizing its layout and making structural adjustment. The state-owned capital and enterprises will play more important roles in sectors concerning strategic security, industrial progress, the national economy and people's livelihood, as well as public services, so as to adjust and optimize the industrial structure. We will advance mixed-ownership reform scheme of the state-owned enterprises in a proactive and steady manner, especially in the four batches of over 200 state-owned enterprises pilots. We will foster a batch of new model enterprises and collect typical cases, and sum up practical experience as soon as possible so as to formulate measures for deepening structural reform in state-owned enterprises. In terms of the private economy, which many are also concerned about, our priority is to improve the environment for the development of the private economy, and step up efforts to eradicate barriers and obstacles which hinder the development of private enterprises. Moreover, we will strengthen monitoring the operation of the private economy, and establish some model cities to guide the development of the private economy nationwide.

Second, we will strive to establish a high-standard market system. The work can be summarized in following three aspects. We will implement the action plan to guide the building of a high-standard market system, so as to make it perform better. We will accelerate the development of a unified market. To promote efficient allocation of factors, we will continue to deepen reforms to encourage market-based allocation of land, the labor force, capital, technology and data. In order to improve market access, we will adopt a unified management model, and optimize dynamic adjustment mechanisms for the negative list. We will revise and roll out the market access negative list for 2021 in order to continue to remove various invisible market access barriers. We will also formulate and roll out special measures to ease market access in Hainan province and the city of Shenzhen.

Third, we will deepen reform in major sectors. For example, the power sector should strive to establish a unified electricity market system nationwide, and increase spot trading pilots for electricity. The oil and natural gas sectors shall deepen reform of the oil and gas pipeline operation mechanism, and ensure the implementation of reform measures in terms of equipment manufacturing, design and construction in power grid enterprises. The oil and natural gas industries should strive to reform the pipeline network operation mechanism, and accelerate the building of a unified network. Efforts will be made to ensure the equal access to the national pipeline network among market entities. We will also improve the government's storage system and mechanism for crude and refined oil. We will deepen market-oriented reform in the railway industry, and promote moderate competition among the railway transportation companies.

Fourth, we will ramp up efforts to drive green transformation. We will accelerate our steps to build up the nationwide markets for trading energy consumption rights and carbon emission rights, so as to peak carbon dioxide emissions and achieve carbon neutrality. We will improve the system for controlling the total amount and intensity of energy consumption, and optimize  systems and mechanisms for the coordination between the increase, consumption and storage of clean energy. We will establish and improve the mechanism to realize the value of ecological goods, and formulate ecological damage compensation regulations.

Fifth, we will enhance our capacity to safeguard the people's wellbeing. Mr. Hu has introduced some measures in this regard, and I'd like to add some more information. We will improve the policies and systems for distribution based on factors of production. We will improve the mechanism to ensure the returns for factors of production are determined by the market, and work to increase factor income of the low- and middle-income groups, so as to strive for common prosperity. Moreover, we will improve the price control mechanism of important livelihood commodities, and establish and improve a system of standards for basic public services. We will also boost the healthy development of elderly care and childcare services, and reform and improve the public service system of national fitness. Through these reforms, we aim to meet the people's increasing needs for a better life. Regarding the reforms, that's all I would like to introduce.

Hu Zucai:

I would like to answer the question about the gross domestic product (GDP) target set for the 14th Five-Year Plan period. GDP, as a comprehensive indicator, has always been a focus of attention. It has been contained as a major economic indicator in the draft outline of the 14th Five-Year Plan (2021-2025) for national economic and social development. The document sets the goal of keeping the average annual growth in an appropriate range, and stipulates that annual target [for economic growth] be set in light of actual conditions. This is the first time in our history of formulating five-year plans. Such a growth target is qualitative overall, with quantitative objectives being implied. It is a prudent adjustment made advisedly in light of the overarching target of promoting modernization. It is also a decision made after considering the development trend, domestic and external environment in the 14th Five-Year Plan period. I think we should understand this in a comprehensive and accurate manner.

First, GDP is a core indicator of a country's economic development. It also reflects the comprehensive economic strength and international competitiveness of a country. Therefore, GDP has been contained in the draft outline as one of the major indicators, but the target has been expressed in a different way.

Second, as China has entered a new stage of high-quality economic development, it is not reasonable to assess its development by simply looking at the GDP growth rate. We should not just pursue economic growth without considering the quality and effectiveness of development, as well as the ecological and environmental impact. On the other hand, economic growth does matter when it comes to the target of realizing modernization. China is still the world's largest developing country, and development remains the basis for and the key to tackling every problem we face. The draft outline has taken both above aspects into consideration. However, it does not mean that we will not need a GDP growth rate any longer. It was pointed out at the fifth plenary session of the 19th CPC Central Committee that China's per-capita GDP will reach the level of a moderately developed country by 2035, which means that its GDP growth rate in the coming 15 years has to be kept in an appropriate range. Moreover, the draft outline has set specific targets for other major indicators, including that of the unemployment rate, energy intensity and carbon intensity. All of them are interconnected with GDP, which means that we should strive to keep the economic growth in line with the potential growth rate. 

Third, we are confident that GDP growth rate will maintain at a certain level, which is proven by a comprehensive study and calculation with the participation of many think tanks. However, given the great uncertainties in the domestic and external environment in the next five years, the decision to not set a specific and quantitative growth target will make us more proactive, active and at ease in coping with all sorts of risks and challenges. It will help boost the flexibility of development and leave room for tackling uncertainties. It will also help us focus on improving the quality and effectiveness of development. Compared to five years, the annual situation is easier to study and judge, so in the annual work, the annual growth target can be determined in a targeted manner, depending on the situation, such as changes in the internal and external environment and the economic performance. Thank you.

Bloomberg:

I would like to ask about strengthening China's science and technology. What will be the priorities during the 14th Five-Year Plan period to this end? What will China do to boost the investment into science and technology? Do you have an expectation for its amount? Thank you.

Ning Jizhe:

Strengthening China's science and technology is a very important topic, and the speakers have all talked about it more or less just now. The country will accelerate it during the 14th Five-Year Plan period, including this year. Specifically, we will improve our strategic scientific and technological strength, boost basic research, applied research, and the transfer and transformation of scientific and technological outcomes, and further improve China's core industrial competitiveness. As for the specific projects and investments that you just asked about, there is a target set out in the 14th Five-Year Plan that China's R&D spending will increase by more than 7% per year, which is expected to account for a higher percentage of GDP than that during the 13th Five-Year Plan period. The figure already increased fast during the 13th Five-Year Plan period, taking up 2.4% of GDP last year. We will strive to surpass it during the 14th Five-Year Plan period.

In terms of key projects, first, the construction of national laboratories should be accelerated, and the system of national key laboratories should be reorganized.

Second, we will facilitate basic research, including formulating and implementing a ten-year action plan, and establishing a number of research centers for basic disciplines.

Third, we will further plan and implement the Sci-Tech Innovation 2030 Agenda to seek breakthroughs in core technologies in key fields.

Fourth, in terms of new infrastructure construction, some of the previous major scientific and technological infrastructure projects are now operational, such as the Tianyan Telescope built up through a long period of effort. We will build more, and advance scientific and technological innovation in artificial intelligence, quantum science, brain science and other sectors.

Fifth, in terms of international centers for science and technology innovation and national science centers, we will develop international centers for science and technology innovation in Beijing, Shanghai, the Guangdong-Hong Kong-Macao Greater Bay Area, as well as comprehensive national science centers in Huairou, Zhangjiang, Hefei, and the Guangdong-Hong Kong-Macao Greater Bay Area with greater efforts. We will also develop a nationally influential scientific and technological innovation center in Chengdu and Chongqing based on a quality plan.

Sixth, we will improve a number of multi-level innovation platforms, including national industrial innovation centers, technological innovation centers, manufacturing innovation centers, engineering research centers, and technological centers of enterprises.

Seventh, we will organize and implement demonstration projects for integrated innovation. As enterprises are the mainstay of technological innovation, we will motivate large enterprises to share their resources, scenarios, applications, and innovation needs with small and medium-sized enterprises to create an ecosystem of innovation and entrepreneurship based on industrial chains and supply chains. We will motivate enterprises to increase R&D spending with tax incentives. Now, over 70% of all R&D funding comes from enterprises, and we will make that proportion even higher. At last, we will continue to support mass entrepreneurship and innovation, and construct demonstration bases for innovation and entrepreneurship. Thank you.

Hu Zucai:

China spent a total of 2.44 trillion yuan in R&D in 2020, accounting for 2.4% of its GDP, a record high in history and maintaining its position as the second in the world. The draft outline aims for China's R&D spending to increase by more than 7% per year. Total R&D spending will reach 3.76 trillion yuan by 2025 if it grows at 7% every year. Of course, we have calculated it at the current prices in 2025, not at a constant price. It is a quite big increase, 1.32 trillion yuan more than in 2020 and higher than that during the 13th Five-Year Plan period. As you may have noticed, this time in the draft outline, we have put basic research in a more important position, and elaborated it in a special section. We have also, for the first time, set an indicator -- the proportion of basic research expenditure to R&D expenditure -- in the draft outline. This figure was 6.16% in 2020, much less than that of developed countries. The draft outline proposes that it will reach over 8% by 2025 during the 14th Five-Year Plan period, a very positive direction to work towards. Spending in this area reached 150.4 billion yuan in 2020, and is expected to reach about 280 billion yuan in 2025 (calculated at the constant price in 2020), and we will strive to make it even higher. It sends a clear message that we will value basic research more. Thank you.

CNR:

How will China coordinate regional development during the 14th Five-Year Plan period? The State Council recently approved the establishment of a joint working mechanism between the local governments and central government departments to revitalize northeast China. What measures will there be to promote the revitalization? Thank you.

Zhao Chenxin:

Thanks for your questions, which are both about regional development. The CPC Central Committee with Comrade Xi Jinping at its core has attached great importance to regional development, and further implemented the strategies for coordinated regional development since the 18th CPC National Congress. Under major strategies for the coordinated development of the Beijing-Tianjin-Hebei region, the Yangtze River Economic Belt, the Guangdong-Hong Kong-Macao Greater Bay Area, and the Yangtze River Delta, and the ecological protection and high-quality development of the Yellow River basin, those regions have all taken on their respective functions, and moved on to better paths of development. As they now become increasingly coordinated in development, we will seek even better coordination during the 14th Five-Year Plan period, mainly from the following three aspects:

First, we will further implement major regional strategies. In the Beijing-Tianjin-Hebei region, we will relocate non-essential functions from Beijing in a steady and orderly manner, and build the Xiongan New Area according to high quality standards. In the Yangtze River Economic Belt, we will put ecology first and pursue green development, and promote high-quality development while protecting it rather than developing it in a large scale. In the Guangdong-Hong Kong-Macao Greater Bay Area, we will develop a dynamic and internationally competitive first-class bay area and a world-class city cluster. In the Yangtze River Delta, we will enhance its integrated development by forming a new development paradigm first, and make it a foundation and role model for high-quality development across the country. In the Yellow River basin, it is important to make a good start in ecological protection and high-quality development, to ensure significant progress during the period.

Second, we will continue to push forward the strategies for coordinated regional development. We will release more nuanced policies in the western region, promote coordination within it, and form a new paradigm featuring better protection, further opening up, and high-quality development. We will facilitate breakthroughs in the comprehensive revitalization of the northeast, and coordinate policies to ensure national defense, food, ecological, energy, and industrial security. We will speed up the rise of the central region by equipping it with a modern industrial system with advanced manufacturing as the mainstay. We will accelerate the modernization of the eastern region, which will include upgrading its industries by enhancing their capabilities in scientific and technological innovation, and engaging more in international economic cooperation at a higher level. We will also coordinate land and marine development, develop the maritime economy, and build the country into a strong maritime country. We will motivate functional platforms such as national-level new areas to lead in-depth reforms and further opening-up, and consequently, lend fresh impetus to the real economy.

Third, we will focus on building a regional economic layout with complementary advantages for high-quality development. The focus is on improving the institutional mechanism for coordinated regional development, supporting regions in giving full play to their comparative advantages, promoting the rational flow and efficient concentration of various factors, enhancing the momentum of innovative development, and building a power system for high-quality development. We will enhance the carrying capacity of central cities, urban agglomerations and regions with advantageous economic development in terms of economy and population, and support other regions in enhancing their functions in safeguarding national food security, ecological security and border security. Through these efforts, China's regional development will be more coordinated, more efficient and of higher quality.

I would also like to mention the joint working mechanism to revitalize northeast China. General Secretary Xi Jinping has visited the northeast region many times and made many important instructions on this issue since the 18th CPC National Congress. It fully reflects the great attention and earnest expectations of the CPC Central Committee with Comrade Xi Jinping at its core for revitalizing northeast China. The NDRC and other government departments have continuously improved the "1+N+X" policy system for revitalizing the region. Under our policies and work plans, the region made new progress in its revitalization. We then set up the joint working mechanism under the State Council's Leading Group for Revitalizing Northeast China and Other Old Industrial Bases. It was established with the approval of the State Council for better coordination and supervision of related work. NDRC deputy head Cong Liang has taken charge of it, and related work has already started. Through this implementation plan, we will plan the main ideas, key tasks, major projects and major policies for the next step of the revitalization of northeast China, and through a series of efforts, we will promote a new and greater breakthrough in the revitalization of northeast China. Thank you.

Southern Metropolis Daily:

Due to extremely cold weather, China's electricity consumption load last winter hit a new record, even higher than last summer. Will this situation become normal in the future? And we know the U.S. state of Texas recently suffered a large-scale and long-lasting power outage due to extremely cold temperatures. Facing new changes in the energy industry, what measures will the government take to guarantee energy security? Thank you.  

Zhao Chenxin:

Thank you for your questions. As you said, there have been some new changes, new situations and new challenges to China's energy operation and supply. I'll address the subject from these three aspects.

First, let's review the basic situation at that time. As winter began, China's energy demand — especially its electricity demand — grew rapidly, due to the rapid recovery of economic activities and a large-scale cold front. The nation's peak power load hit new record highs on four days: last Dec. 14, 16 and 30, and this year on Jan. 7. In particular, the evening peak load nationwide hit 1.189 billion kilowatts on Jan. 7, which was more than 10% higher than last summer's peak. On the same day, the nation's power generation reached 25.967 billion kilowatt-hours. In a situation like this, it's difficult to fully satisfy the electricity demand. Currently, China's installed power generation capacity is more than 2 billion kilowatts. Therefore, it seems that we should have no problem with such huge installed capacity. However, since the peak load occurred at night, solar power generation, that is to say, photovoltaic power generation, could not be used. In addition, there was no large-scale wind across the country on Jan. 7, so we could only generate about 10% of wind power. The total installed capacity of wind and photovoltaic power generation is 530 million kilowatts, but there were 500 million kilowatts that could not be used. The total installed capacity of hydropower is 370 million kilowatts. However, as winter is the dry season, more than 200 million kilowatts could not be used during the peak load period. In addition, the peak of natural gas consumption occurs in winter. China's installed natural gas-fired power generation capacity is nearly 100 million kilowatts, but around 50 million kilowatts could not be used. As a result, it is really difficult for the remaining installed capacity to meet the demand of high load. We also need to consider the problems of regional capacity and shutdowns of generators for maintenance. No matter the difficulty, in accordance with General Secretary Xi Jinping's instructions on sticking to the people-centered philosophy of development, the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) organized localities and central State-owned enterprise (SOEs) to make all-out efforts to meet the challenge, and we finally succeeded in ensuring smooth and orderly operation of the energy sector and stable and efficient power supply, especially supply for people's livelihood. No major problems occurred. The sharp contrast between us and the case you mentioned just now is a good manifestation of China's institutional strengths and our putting people first.

Second, let's talk about our evaluation of the new situation. Previously, peak energy consumption normally occurred in summer because of the rapid increase of the air conditioning load. According to our analysis, the unusual winter peak was mainly caused by the increasing demands for clean heating in northern China and for electric heating in southern China in recent years. Increases in air conditioning and electric heating loads both show the desire of the Chinese people for a better life. We must ensure stable energy supply to meet their aspiration. Therefore, the NDRC and the NEA have organized different sectors to carry out in-depth research, because we should take into consideration the safety, affordability and sustainability of energy supply, establish an energy system that is clean, low-carbon, safe and efficient, and  achieve peak carbon emissions and carbon neutral goals. As such, we are preparing the next work plan.

Finally, let's talk about what should be done. This can be summed up in one sentence: We will fully implement General Secretary Xi Jinping's instructions on improving energy production, supply, reserve and sales systems. We have already made relevant plans, and the next step is implementation. In terms of production, we will strengthen the supply of energy resources by establishing a diversified power generation system featuring stable operation. In terms of supply, we will improve energy resource allocation by promoting the coordinated development of power grids at different levels nationwide. In terms of reserve, we will shore up our weak links in energy reserve by strengthening our reserve capacity in an all-round way. In terms of sales, we will build a modern energy market system and use market-based measures to deepen energy demand side management.

In conclusion, in recent years, in accordance with General Secretary Xi Jinping's requirement for a new energy security strategy featuring "Four Reforms" and "One Cooperation," we have secured profound progress in energy sector. We have prominent institutional strengths, a strong material foundation and rich supply experiences to confidently ensure energy security during the 14th Five-Year Plan period, and enhance people's sense of satisfaction. Thank you.

Kyodo News:

My question is about foreign investment. Some foreign-funded companies are worried that certain policies, such as the export control law, may impose restrictions or obstacles on their investment in China. How can you make foreign-funded companies reassured about their investment in China during the 14th Five-Year Plan period?

Ning Jizhe:

China's paid-in foreign direct investment (FDI) bucked the trend last year despite a sharp contraction in global cross-border direct investment. In 2020, nonfinancial FDI into China rose to $144.4 billion, up 4.5% year on year. In January this year, the country made a good start in the use of foreign capital, which reached $13.5 billion, up 6.2% year on year. Foreign-funded enterprises have maintained stable operation and production in China, and a number of major foreign-funded projects are being implemented steadily  despite the impact from the COVID-19 pandemic. A total of 94% of U.S. companies are optimistic about the business outlook in China this year, and more than half said that China remains their top investment destination, according to the 2021 White Paper on the Business Environment in China released by the American Chamber of Commerce in South China. However, it is not only companies from the U.S. Those from Japan, Europe and elsewhere are also optimistic about the business outlook in China. 

The next step of promoting stable foreign investment still faces many challenges. In 2021, the NDRC, in line with the deployments of the CPC Central Committee and the State Council, will carry out opening-up in a larger scope, wider areas and at a deeper level, and step up building of a new system for a higher-level open economy. The country will fully implement the foreign investment law to better promote and protect foreign investment and continue to improve its business environment. 

First, we will continue to reduce the negative lists for foreign investment. China revised its negative lists of foreign investment for four consecutive years from 2017-2020. The number of sectors that are off-limits for foreign investors has been cut by nearly two-thirds. A series of major opening-up measures have been launched in finance,  automobile, and other sectors, and the manufacturing industry has been basically opened up. In 2021, we will further shorten the negative lists for foreign investment, with more efforts made to ensure opening-up of the manufacturing industry and promote the orderly opening-up of the service industry. We will extensively introduce advanced technology, management experience and business models, and promote high-quality economic development with a high-level of opening-up. At the same time, we will also give full play to the FTZs' role as the "test field" for further opening-up, and encourage them to continue pilot projects.

Second, we will continue to expand the fields where foreign investment is encouraged. The new 2020 Catalog of Industries Encouraging Foreign Investment  took effect this January, adding 127 items to the list and further expanding the scope for foreign investment. Next, we will focus on its implementation, apply combined measures of boosting the increment, stabilizing the stock and enhancing the quality, and improve the relevant supporting policies. We will actively channel more foreign investment into fields like advanced manufacturing, high technologies, and energy conservation and environmental protection, as well as into producer services such as research, development, and design; modern logistics; and information services. Finally, investment will be encouraged in China's central, western, and northeastern regions to give better play to foreign capital's role in ensuring the stability of industrial and supply chains.

Third, we will ramp up efforts to promote the implementation of major foreign investment projects. In 2018, the NDRC led the establishment of a special task force for major foreign investment projects to coordinate project implementation and solve any problems involved. So far, four batches of major foreign investment projects have been launched, with a total investment of more than US$110 billion. This year, we will launch the fifth batch of such projects and provide policy support in industrial planning, land use, environmental assessment, and energy use, etc. We will continue to focus on fields like advanced manufacturing and high technologies when supporting major foreign-invested projects. We will encourage foreign investors to participate in the high-quality development of China's manufacturing sector, in the construction of new infrastructure and in China's innovation-driven development, and better leverage the exemplary role of these projects. We will encourage localities to improve their mechanisms, promote coordination at all levels, and provide services at every stage of the project.

Fourth, we will fully implement a post-establishment national treatment for foreign investment. Since last year, China, in accordance with the arrangements to ensure stability on six fronts (employment, finance, foreign trade, inbound investment, domestic investment, and market expectations) and maintain security in six areas (employment, people's livelihood, market entities, food and energy, industrial and supply chains, and operations at grassroots levels), has introduced a series of measures in fields including tax, finance, and social security to alleviate difficulties encountered by enterprises. These measures are equally applicable for foreign companies. We will continue to promote the equal treatment of foreign and domestic enterprises in terms of government procurement, land supply, the reduction and exemption of tax and fees, license applications, standards-setting, project application, and human resources policies, among others. 

Regarding the Export Control Law  that has drawn some foreign enterprises' attention as you mentioned, the purpose of the law is to restrict the export of dual-use items, military items, and other controlled items. It also means that domestic and foreign enterprises are treated equally in terms of the control scope and measures. In general, the normal export of foreign enterprises won't be affected.

Fifth, we will effectively strengthen oversight for business services. We will more actively introduce relevant policies and measures to foreign enterprises, enhance information services through multiple channels, and readily resolve difficulties faced by foreign-funded projects in investment, production, and operation in a coordinated manner to create a more convenient environment for foreign enterprises to invest in China. At the same time, we will continue to refine the regime of pre-establishment national treatment plus negative list for foreign investment, and security reviews of foreign investment. We will work to establish a fair, transparent, efficient, and safe regulatory system that is in line with high-level opening-up and international norms, in order to foster a favorable investment environment. Thank you.

China News Service:

The draft outline of the 14th Five-Year Plan (2021-2025) for Economic and Social Development and the Long-range Objectives Through the Year 2035  (referred to as the "draft outline" hereafter) explicitly points out that China will make more active and effective efforts to promote common prosperity. What are the specific measures in this regard? Thank you. 

Hu Zucai:

Common prosperity is an essential requirement of socialism, a shared aspiration of the Chinese people, and also a goal that our Party has been unwaveringly committed to. Since the 18th National Congress of the Communist Party of China (CPC), common prosperity has taken on new implications and secured more solid progress. A significant step is the complete victory in eradicating absolute poverty. Our success in building a moderately prosperous society in all respects has also laid a solid foundation for promoting common prosperity. The fifth plenary session of the 19th CPC Central Committee made major arrangements for the promotion of common prosperity, and for the first time in the history of the plenary sessions of our Party, set the long-range goal of " achieving more notable and substantial progress in promoting common prosperity for everyone" by 2035. Common prosperity itself is an important goal of socialist modernization. As China has embarked on a new journey toward fully building a modern socialist country, we must attach greater importance to common prosperity and make a more proactive and meaningful effort to fulfill this goal.

Common prosperity has distinct features of the times as well as Chinese characteristics. As far as I'm concerned, we should have an overall understanding of common prosperity from the following four aspects:

First, common prosperity means "prosperity for all." It is not the prosperity for some people or some regions, but the shared prosperity for all Chinese people. It means that all Chinese people share the benefits of development and live a happy and fulfilling life.

Second, common prosperity refers to "comprehensive prosperity," which includes both material and spiritual prosperity. It means not only affluence in life but also confidence and self-improvement in spirit. It also entails a comfortable environment for living and working, social harmony, and universal access to public services. In short, common prosperity is to realize people's all-around development and social progress. 

Third, common prosperity points to "shared prosperity through joint contribution." Common prosperity requires the hard work and mutual assistance of all people. Everyone participates and contributes, and benefits are enjoyed by all. With concerted efforts, we build a better home and live a better life.

Fourth, common prosperity means "realizing common prosperity gradually." Achieving prosperity for all is a long-term and arduous task. It is a gradual process. We must abide by the law of development and act proactively, all the while keeping our feet on the ground and committed to persistent efforts instead of being divorced from reality. We should achieve the goal of common prosperity step by step on the road toward modernization.

The four aspects are my overall understanding of common prosperity. 

The draft outline sets the goal of making solid progress toward prosperity for all Chinese people and puts forward the requirement of making more active and effective efforts to promote common prosperity. These are actually further plans for advancing common prosperity. We should focus on the prominent contradiction of unbalanced and inadequate development; give priority to narrowing the disparities in development between urban and rural areas, and between regions, and in income distribution; and secure solid progress toward common prosperity while furthering high-quality development. In other words, we should both make the cake bigger and share it fairly. We will proactively solve problems such as wealth disparity between regions, between urban and rural areas, and in incomes. We will safeguard and improve people's livelihoods in the course of development, and enhance people's well-being by coordinating advances in employment, income distribution, education, social security, health, housing, elderly and child care, among other areas. We will pay more attention to weighting more toward rural, grassroots and less-developed areas, and disadvantaged groups, to promote social equity and justice. In this way, we hope all the people can enjoy the fruits of development in a fairer way and feel a greater sense of gain through joint contribution and shared benefits. We will pool the tremendous strengths of all the people to build China into a modern socialist country.

According to the arrangements of the CPC Central Committee, the draft outline proposes that an action plan for promoting common prosperity be formulated. This is a top-level design, which will clarify the direction, goals, key tasks, pathways and methods, policies, and measures for achieving common prosperity. The NDRC is taking the lead and cooperating with relevant departments for the formulation work. In addition, the draft outline calls for supporting Zhejiang province to build a common prosperity demonstration zone through high-quality development. There, top-level design and demonstration zone construction are both being promoted. Zhejiang boasts relatively good conditions in all aspects, with its urban-rural gap, regional development, and affluence indicators all leading the country. Therefore, the draft outline makes it clear that Zhejiang will be supported to build a common prosperity demonstration zone through high-quality development. The main task is to explore institutions, mechanisms, and systems for boosting common prosperity, gain experiences that can be replicated and applied in other areas, and make solid progress in this regard. Thank you.

Chen Wenjun:

Today's press conference is concluded. Thank you all.

Translated and edited by Duan Yaying, Huang Shan, Xiang Bin, Guo Yiming, Gong Yingchun, Li Huiru, Zhang Liying, Zhang Jiaqi, Chen Xia, Wang Mengru, Zhang Junmian, Xu Xiaoxuan, Liu Qiang, Wang Qian, Zhu Bochen, Yuan Fang, Cui Can, 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.