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Read in Chinese

Speakers:

Tian Yulong, a member of the Leading Party Members Group of the Ministry of Industry and Information Technology (MIIT) and MIIT chief engineer and spokesperson

Huang Libin, MIIT spokesperson and director general of the MIIT's Performance Inspection and Coordination Bureau

Zhao Zhiguo, MIIT spokesperson and director general of the MIIT's Information and Communications Administration Bureau

Chairperson:

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

Date: 

July 16, 2021

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Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are delighted to be joined by Mr. Tian Yulong, a member of the Leading Party Members Group of the Ministry of Industry and Information Technology (MIIT) and MIIT chief engineer and spokesperson. He will introduce the development of industry and information technology in the first half of 2021 and answer your questions. Also present at today's press conference are Mr. Huang Libin, MIIT spokesperson and director general of the MIIT's Performance Inspection and Coordination Bureau, and Mr. Zhao Zhiguo, MIIT spokesperson and director general of the MIIT's Information and Communications Administration Bureau.

Now, let's give the floor to Mr. Tian.

Tian Yulong:

Friends from the media, good morning! First of all, thank you all for your concern and support for the development of industry and information technology in China. I will first briefly introduce the overall situation of industrial and information technology development in the first half of this year, and then I will join my colleagues to answer your questions.

General Secretary Xi Jinping delivered an important speech at a ceremony marking the centenary of the Communist Party of China (CPC), which pointed out the direction for building a great modern socialist country in all respects. The industrial and information sectors have earnestly studied and implemented the guiding principles of General Secretary Xi Jinping's important speech, strived to build China's strength in manufacturing and cyberspace, and made unremitting efforts toward the second centenary goal of building China into a great modern socialist country in all respects. Since the beginning of this year, we have thoroughly implemented the guiding principles of the Fifth Plenary Session of the 19th CPC Central Committee and the Central Economic Work Conference, and the overall plan set out in the government work report. We have worked to ensure the six priorities of employment, people's livelihoods, development of market entities, food and energy security, stable operation of industrial and supply chains, and smooth functioning at the community level, and ensure stability in six areas: employment, finance, foreign trade, foreign investment, domestic investment, and market expectations. The industrial sector continued its steady recovery, while the information technology sector enjoyed sound development. The economy showed steady and robust growth, laying a solid foundation for achieving the annual goal and ensuring a good start of the 14th Five-Year Plan (2021-2025).

There are four main highlights in the development of industry and information technology in the first half of the year.

First, the industrial economy regained its strength and demonstrated resilience. Since the beginning of this year, China's industrial economy continued to steadily recover; supply and demand grew progressively; the rebound of domestic and external demand accelerated and broadened; market expectations continued to improve; internal growth drivers were boosted; and corporate profits in the industrial sector rose significantly. In the first half of the year, the value-added of industrial enterprises above designated size increased by 15.9% year on year, and the two-year average growth rate was 7%. In the first five months, the profits of industrial enterprises above designated size increased by 83.4% year on year, and the two-year average growth rate stood at 21.7%, which was a historical high.

Second, we have continued to advance industrial upgrading and foster new drivers of growth. Since the beginning of this year, we have actively ensured supplies when conducting epidemic prevention and control on an ongoing basis and comprehensively increased China's vaccine production capacity to ensure vaccine supply. As of July, China's annual production capacity for COVID-19 vaccines reached 5 billion doses, with over 1.4 billion doses of vaccines administered in China and over 500 million doses provided to other countries around the world. Meanwhile, we have accelerated the transformation of our manufacturing industry to be green and low carbon and developed innovative applications of intelligent manufacturing and the industrial internet. We have implemented special actions for the development of advanced manufacturing clusters and built national-level internet of vehicles pilot zones and national artificial intelligence innovation application pilot zones. In the first half of the year, the value-added of the high-tech manufacturing sector increased by 22.6% year on year, and the two-year average growth rate was 13.2%. New drivers of growth and new industries continued to facilitate innovative development.

Third, production and business operations have been improved and the vitality of enterprises continues to increase. Multiple departments jointly issued guidelines on accelerating the cultivation of high-quality manufacturing enterprises to vigorously promote the development of leading manufacturers and technologically advanced "little giants," which refer to the industry leaders recognized by the MIIT with specific market orientation, excellent innovation capabilities, large market shares, core technologies, and high product quality and profitability. We have continued to improve the "321" work system for facilitating the development of small- and medium-sized enterprises (SMEs), that is, providing support in the three aspects of policy, services and the environment, focusing on the two key tasks of addressing financing difficulties and enhancing the protection of their legitimate rights and interests, and aiming for the target of making them more innovative and professional. We have implemented structural tax reduction measures, promoted the reduction of guaranty fees for small and micro businesses, and improved the long-term mechanism for preventing and dealing with the problem of defaults on payments to SMEs. In these ways, we continued to improve the policy environment for SMEs. In the first half of the year, the value-added of small- and medium-sized industrial enterprises increased by 18% year on year, and the two-year average growth rate was 8.1%.

Fourth, information and communications have accelerated development, while innovation and industrial integration keeps driving growth. At present, a total of 961,000 5G base stations have been set up. As of the end of June, these stations covered all cities at the prefecture level and above across the country, with approximately 365 million 5G terminal connections. Meanwhile, we have accelerated the construction of "dual gigabit" networks, and the number of gigabit broadband users has reached 13.62 million. The application scenarios of "5G plus industrial internet" continue to expand, and great progress has been made in key demonstration areas, industries and regions. 5G empowers industries to improve quality, increase efficiency, reduce costs, and pursue green and safe development. With the collaboration of multiple departments, we made great efforts to address hidden information security risks, and officially launched the 12381 Fraud Prevention Message System. Significant results have been achieved in actions to protect personal information on apps and to adapt telecommunications services to better suit senior users. People's sense of gains and security has been significantly improved.

Of course, we are keenly aware that there are still great uncertainties, risks and challenges regarding the global pandemic and the external environment. There are still uncertain factors concerning the sustained economic recovery; and the microeconomic operation still faces difficulties and challenges. Meanwhile, small and medium-sized enterprises in particular are confronted with many difficulties. The MIIT will study and implement the guiding principles of an important speech by General Secretary Xi Jinping at the ceremony marking the Party's centenary on July 1. We will firmly implement the decisions and plans of the CPC Central Committee and the State Council, ground our work in this new stage of development, apply the new development philosophy, and foster a new pattern of development. We will jointly work with other departments to focus on priorities and deepen supply-side structural reforms, prevent and defuse risks, and tackle structural problems. We will stay focused, and ride the momentum to speed up a sustained and steady recovery and ensure the high-quality development of the industrial economy. We will work hard to ensure all tasks and goals set throughout this year are accomplished, in order to achieve a good start in the 14th Five-Year Plan period (2021-2025) and write a new chapter of the new journey toward the second centenary goal of building China into a great modern socialist country in all respects. 

This is all for now. Next, my colleagues and I will answer your questions.

Shou Xiaoli:

The floor is now open for questions. Please identify your news outlets before asking questions.

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CCTV:

At the ceremony marking the Party's centenary on July 1, General Secretary Xi Jinping said, "The Communist Party of China is rallying and leading the Chinese people on a new journey toward realizing the second centenary goal." What plans and measures will be formulated on the new path of industrialization to help realize the goal? Thank you.

Tian Yulong:

Okay, I will answer your question. General Secretary Xi Jinping has stressed on many occasions that "manufacturing is the foundation on which to build the country and make it strong." Promoting the country's industrial modernization and working faster to make China strong in manufacturing concerns the goal of building China into a great modern socialist country. According to the decisions and plans of the CPC Central Committee and the State Council, we are now formulating the development plans for the industrial and information technology sectors for the 14th Five-Year Plan (2021-2025) and the medium- and long-term periods. They will be promulgated in the second half of the year. With a focus on the second centenary goal, these plans aim to speed up developing a new type of industrialization. During the 14th Five-Year Plan (2021-2025) and the medium- and long-term periods, we will set out comprehensive plans concerning the goals, approaches and tasks of building China's strength in manufacturing and cyberspace. Specifically, we will take strong measures in five areas.

First, we will further implement an innovation-driven development strategy. We will promote industrial innovation led by enterprises and work hard to create new advantages for the innovative development of manufacturing. We will carry out projects to achieve breakthroughs in core technologies in key areas, and develop key technologies, products and equipment. We will implement the project of developing a national network for manufacturing innovation and establish an open, collaborative and efficient generic technology platform.

Second, we will build a modern industrial chain. We will continue to implement projects to rebuild our industrial foundation, and work faster to upgrade it. We will focus on strategic areas concerning the national economy, people's livelihoods, national security and high technology. We will give full play to the strengths of the industrial and supply chains, and strengthen our weakness in this regard. We will promote the transformation and upgrading of the whole industrial chain in traditional sectors. With a focus on a new generation of information technology, new materials, new processes and new equipment, as well as aviation, aerospace, marine, and other emerging industries, we will develop industrial digitalization and digital industrialization, make a forward-looking layout of future industries, and seize the initiative of industrial development.

Third, we will promote the development of manufacturing and make it high-end, smart and eco-friendly. We will accelerate the implementation of the strategy to make China a country strong with quality, expand the supply of high-quality products, and build high-end manufacturing brands with international influence. We will promote smart manufacturing, build smart factories and a smart industrial chain, and cultivate and develop new business forms and new models of smart services. With focus on the goals of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060, we will develop a system of eco-friendly manufacturing, speed up the green and low-carbon transformation of manufacturing, and build new engines for green growth.

Fourth, we will move forward with the integrated development of small, medium-sized, and large enterprises. We will work faster to cultivate excellent enterprises, including those that can take the lead and maintain dominance. We will implement projects to enhance the innovation capabilities of small- and medium-sized enterprises; cultivate a number of "little giants"; and achieve the integrated and innovative development of small, medium-sized, and large enterprises. We will upgrade the collaborative system to support the industrial chain in key areas, sectors and regions, and accelerate the cultivation and development of world-class advanced manufacturing clusters.

Fifth, we will foster a sound ecosystem for the development of manufacturing. We will work with other departments to improve and innovate fiscal and taxation supportive policies, enhance multi-level capital markets, optimize the supply of financial products and services, and establish systems and mechanisms for the financial sector to effectively support the real economy. We will comprehensively improve the skills of our workers and the professional qualities of our manufacturing talent. We will support capable enterprises to go global and deeply integrating themselves into the global industrial chain. We will build a win-win community of shared interests connected by industry and supply chains, and create new advantages in international cooperation and competition.

Next, we will formulate plans in the above five aspects and take effective measures to promote them. Thank you.

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China National Radio:

We have noticed that the industrial economy maintained a steady recovery in the first half of the year. What is the assessment of the spokesperson on the current performance of the industrial economy? Also, what specific measures has the MIIT taken to drive the steady recovery of the industrial economy, and how do you predict the situation will develop in the second half of the year?

Tian Yulong:

Thank you, Mr. Huang Libin will answer these questions.

Huang Libin:

Thank you for your questions. Mr. Tian just presented in his opening remarks the overall situation of the industrial economy and development of information technology in the first half of the year. The main characteristics of the economic performance in the first half of this year can be summarized as "solidifying and gaining better quality and brighter prospects, while maintaining stability." As for "solidifying while maintaining stability," we mean that the momentum of steady recovery of industrial economy has become more solidified, and economic growth has become more stable, balanced and endogenous. 

Speaking of stability, excluding the impact of last year's base, the two-year average growth rate remained stable overall. The industrial added value above designated size saw a year-on-year growth of 15.9% in the first half of this year, putting the two-year average growth rate at 7%. The two-year average growth rates in the first and second quarters were 6.8% and 6.6% respectively, not showing much fluctuation. The utilization rate of industrial capacity reached 78.4% in the second quarter, which is 1.2 percentage points higher than in the first quarter. Economic indicators such as the delivery value of exports and proportion of products sold all reached relatively higher levels seen in recent years. 

Speaking of being balanced, among the 41 main industrial categories, 39 of them, or more than 90% of them, saw growth in the first half of the year. The policy of expanding domestic demand and boosting consumption was implemented and results were achieved. Investment was increased to make up for weaknesses; domestic demands played a stronger role in boosting industrial growth; and consumer goods manufacturing sector saw the two-year average growth in added value reach 4.8% in the first half of the year, a 0.6 percentage point higher than in the first quarter. 

Speaking of being endogenous, various policies aimed at aiding and benefiting enterprises continued to deliver dividends. Market entities further restored their vitality. In the first five months, industrial enterprises above designated size saw a big growth rate of 83.4% in the total amount of profits over the same period last year. The operating profit ratio also reached a high level of 7.11%. 

Based on the significant improvement of profitability of enterprises, investment in manufacturing sector grew 19.2% year-on-year in the first half of the year. Investor confidence in the market continued to strengthen. 

As for gaining better quality while maintain stability, we mean that the industrial economy was running within a reasonable range. The industrial structure continued to optimize and high-quality development reached a new level. Efforts to transform and upgrade traditional industries continued to intensify. We cemented the success in cutting capacity in the steel industry and pushed for green, low-carbon development. The energy consumption per unit of industrial added value of enterprises above designated size decreased 5.7% year-on-year over the first five months. Meanwhile, implementation was deepened in the project of intelligent manufacturing and project of innovative development of the industrial Internet. The manufacturing sector became increasingly digitalized, smart and internet-powered. As of the end of May, the popularity of digitalized tools used in R&D and design reached 73.5% among enterprises, and the numerical control rate of key processes reached 52.4% among enterprises. The development of new industries and new growth drivers was accelerated. In the first half of the year, the added value of high-tech manufacturing sector grew 22.6% year-on-year, with the two-year average growth rate reaching 13.2%, notably higher than the overall industry. The output of new energy vehicles and industrial robots increased by 2.1 times and 69.8% year on year respectively. New industries in the digital economy such as big data, cloud computing and blockchain flourished, and new models such as live-streaming e-commerce, online medical treatment and remote work grew rapidly.

As for gaining brighter prospects while maintaining stability, we mean that positive factors supporting the sustained and steady recovery of the industrial economy accumulated and the sustainability of the economic recovery further strengthened. Our country led the world in epidemic prevention and control and economic recovery and this advantage has continued to strengthen. The industrial system exhibited its resilience; efforts to foster a new pattern of development was accelerated; the potential of the domestic market was continuously unleashed; and the fundamental situation that the industrial economy is looking good in the long term has continued to expand. As the vaccination work accelerates, the world economy is steadily recovering, household consumption continues to recover, construction of new-type infrastructure is accelerated, and the periodical economic rebound continues to gain strength. We have the capability and resources to keep the industrial economy running within a reasonable range. 

In the meantime, we should see that we are currently facing an international environment that is complicated and stern with numerous factors of instability and uncertainty. Rising commodity prices, chip shortages and other issues have put new pressures on the recovery of the industrial economy. Next, we will attentively implement the decisions and arrangements of the CPC Central Committee and the State Council, make serious efforts in implementing various policies and measures, address all sorts of difficulties and challenges proactively, and push for the sustained and steady recovery of the industrial economy and its high-quality development. Thank you.

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China Daily:

More than 1.4 billion doses of COVID-19 vaccines have been taken in our country. How is the situation regarding the production and supply of COVID-19 vaccines in our country? Can we manage to meet the demands for vaccine exports? What measures has the ministry taken to secure the production and supply of vaccines? Thank you.

Tian Yulong:

Thank you for your questions. I will answer these questions. The ministry has deepened its efforts to implement the spirit of a series of important directions and instructions by General Secretary Xi Jinping regarding epidemic prevention and control and vaccine production and supply. Under the overall arrangements and demands of the Joint Prevention and Control Mechanism of the State Council, the ministry led relevant departments to increase efforts in organizing and coordinating the production and supply of vaccines. We offered guidance for seven enterprises to quickly expand their capability and output, and accelerate the industrialization of vaccine production. As of this year, efforts to expand the capability and output of vaccine production have been remarkably accelerated, and the capability of vaccine production and supply has been significantly improved. Everybody can see this. As of July, vaccine production capability reached 5 billion doses, effectively meeting domestic demand. As you just mentioned, we have supplied 1.4 billion doses of the vaccine now. We also supplied 570 million doses of vaccine overseas. The production capability and output of COVID-19 vaccines has continued to expand, the supply capability has continued to improve, and the growth has been significant, which has well met domestic demands for epidemic prevention and control and vaccination, and also supported other countries for epidemic prevention and control in our best abilities. 

We have high demands for vaccine quality and safety because people's lives are of supreme importance. It takes three months for a vaccine to go from production to inoculation due to technical difficulty, a number of control links and procedures. The MIIT and relevant departments have worked together to coordinate the whole chain of production and supply, including research and development, production, review, approval and transportation and effectively guaranteed production and supply. There are mainly several specific measures.

First, we have accelerated the building of production capacity for all types of vaccines. Progress has proceeded according to plan. On the basis of ensuring quality and safety, we have made great efforts to expand production capacity and guarantee supply. Second, we have guided vaccine companies to strengthen quality and safety control. In particular, higher requirements have been put forward concerning the supply of raw and auxiliary materials, inspection and quality. Ensuring quality and safety is our first priority. Third, we have strengthened connection between supply and demand. Domestically, we have guaranteed supply for key cities and regions in urgent need for vaccines. Internationally, we have communicated with the WHO and other countries to provide support, which is also a very important task.

In the second half of the year, in accordance with the decisions and deployments of the CPC Central Committee and the State Council, the MIIT will continue to organize and coordinate with relevant departments, and guide enterprises to guarantee the quality and safety of vaccines and maintain stable production. We will also coordinate domestic and international demands, and support vaccine enterprises to carry out international production capacity cooperation in multiple ways to expand vaccine accessibility and affordability and make more contributions to the global fight against COVID-19. Of course, we will still give priority to domestic epidemic prevention and control and vaccination needs. We are confident that we will accomplish this task. Thank you.

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Hong Kong Commercial Daily:

Nowadays, almost everyone has a mobile phone with many apps installed. The management of apps, relating to the vital interests of the public, is a hot issue of common concern. What important measures has the MIIT taken recently to manage apps? Thank you.

Tian Yulong:

Thanks for your question, Mr. Zhao Zhiguo will answer it.

Zhao Zhiguo:

Thank you for your question. The MIIT pays great attention to the protection of app users' rights and interests. In recent years, we have adopted a holistic approach to improve our management system. Through the following four areas of work, we have achieved new progress and effects.

First, problem-addressing actions on apps' infringement of users' rights and interests were continued. We have organized communication authorities in Guangdong, Zhejiang, Jiangsu, Shanghai, Tianjin, Sichuan, Anhui and Inner Mongolia to carry out six batches of random inspections. In total, 760,000 apps were examined, 748 apps were reported to be violating rules, and 245 apps that refused to make corrections were disposed. We have maintained high-pressure deterrent against violations.

Second, supervision of key responsibility chains was strengthened. App stores were asked to strengthen self-examination, dispose faulty apps, and check new apps. By the end of May, there were 3.02 million apps in the Chinese market, 13% down from the 3.5 million before the campaign. With these efforts, the quality of apps has improved, and we have promoted the healthy development of apps that conform to rules. At the same time, the problem-finding rate of random inspections in app stores has steadily declined. 

Third, special campaigns to address app pop-ups were carried out. One campaign focused on pop-ups which appear as an app opens and are difficult to close as well as on those which mislead users to click to another page. These two problems received the most complaints from users. In the second quarter, complaints about open screen pop-ups fell by 50% from the previous quarter. Among the top 100 most-used apps, only 1% were found to have pop-ups showing up as they open, down from 69%. Also only 12 percent of them were found to have pop-ups appearing to mislead users to click to another page, down from 90%.

Fourth, the ability of technical examination was significantly advanced. With big data, artificial intelligence and other technologies, the capability of automatic examination, monitoring and data analysis of the national app technical examination platform has improved constantly. At present, the platform can examine 150,000 apps each month, and it is expected to cover 1.8 million apps by the end of this year.

Next, the MIIT will continue to improve app governance as a specific measure to solve practical problems for the people and strengthen efforts in the following three areas. With sustained momentum and work rhythm, we will strive to create a safer, healthier and cleaner app environment for the general public. 

First, we will push ahead efforts to improve management policies and industry standards. Together with other relevant departments, we will issue the interim provisions on the protection and management of personal information on mobile apps. We are now studying and incorporating opinions and suggestions solicited from the public after the drafts went online and will issue the provisions as soon as possible. We will also make efforts to formulate and improve relevant industry standards. By doing so, we can better guarantee app governance with policies and industry standards.

Second, we will launch a campaign to improve service. The campaign will focus on several major issues, including fixing undesirable services and improving user experience for apps, and adopt effective measures to improve the quality of service in those apps. We will launch the campaign in the second half of this year and adopt strong and effective measures to improve user experience.

Third, we will conduct follow-up inspections for key issues and businesses on a timely basis while ensuring routine supervision. For companies who have been found repeatedly accessing users' address books and geographical locations illegally, we will enhance law enforcement efforts to ensure those problems won't happen again. Thank you.

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Cover News:

We've noticed that auto production and sales have been declining year-on-year since May compared to the strong momentum of growth in previous months. What's your comment on this? Is the decline related to factors such as the auto chip shortage? What will MIIT do in response? What's your forecast for trends in this year's auto market? Thank you.

Tian Yulong:

Thanks for your questions. As you know, auto production and sales in China maintained steady growth in the first half of 2021, especially in new energy vehicles (NEVs), which registered rapid development. According to statistics, the production and sales of automobiles in the first half of 2021 totaled 12.57 million and 12.9 million, respectively, up by 24.2% and 25.6%, demonstrating a strong momentum of growth. The production and sales of NEVs were 1.22 million and 1.21 million, respectively, double the figures in the same period last year.

Of course, as you said, auto production and sales declined in May and June due to reasons like chip shortages and the transition of vehicle emission standards. In June, auto production and sales were 1.94 million and 2.02 million, respectively, down by 4.8% and 5.3% month-on-month as well as a decline of 16.5% and 12.4% year-on-year.

MIIT has set up a special workforce for the promotion and application of auto semiconductors to respond to the auto chip shortage. We have held several coordination meetings and formulated measures with targeted goals to bring the role of local government, auto manufacturers, and chip foundries into full play, enhance the synergy between the supply and demand side, and increase the supply of auto chips. Our efforts are gradually paying off. In the next step, we will continue to bring synergy between the supply and demand side, actively identify alternative measures to strengthen China's manufacturing capacity to contribute to the stable and healthy development of the auto industry.

Looking at the domestic and international economic situation together, we expect the auto industry to maintain steady and long-term growth, based on continuous macroeconomic recovery, the policies bolstering auto consumption, as well as other strategic goals for peak emissions and carbon neutrality. According to industry analysis, this year's auto production and sales will enjoy mild growth. NEVs, in particular, are expected to enjoy high-speed growth, with sales on course to hit 2 million. In general, the auto industry is playing its part to boost industrial and economic growth. Our goal is to maintain this steady and rapid growth. Thank you.

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Red Star News:

Online mobile app stores have been notified to remove ride-hailing service app Didi Chuxing due to its serious violations of laws and regulations regarding the collection and use of personal information. In recent years, MIIT has been promoting data protection in mobile apps. Could you share with us the progress made regarding these issues in 2021, especially with the rectification of the apps in violation of users' rights? What will MIIT do next to improve data protection? Thank you.

Tian Yulong:

Thank you. Mr. Zhao Zhiguo will take your questions.

Zhao Zhiguo:

This year, we launched a special campaign and adopted a series of measures to rectify the infringement of users' rights in mobile apps. The measures have been quite effective. We have noticed that the Didi Chuxing app has been taken down from online stores. We will work with related departments, with each of us assuming our respective responsibilities, in order to rectify problems in mobile apps.

In the next step, given the current situation, we will work on the following three aspects in response to issues of wide public concern. First, we will enhance institutional development and standard-setting. Specifically, we will launch an interim regulation on the protection of personal information on mobile apps along with several other departments. The regulation is targeted toward the protection of user information and is based on opinions and common ground reached by various knowledgeable circles. This will be one of our priorities for the next step. Moreover, with more and more types of mobile apps seen in the market, we will improve standard-setting and routine testing in order to form a solid foundation for better management.

Second, we will launch a campaign to improve user experience among mobile apps. By screening apps that offer undesirable services and poor user experience, we will identify those that have received more user complaints, and further take strong, targeted, and effective measures to improve the quality of service among those apps. We believe that it is necessary to conduct such a campaign as mobile apps are used widely and are an important part of people's lives, studies, and work. 

Third, on the basis of regular supervision, we will carry out follow-up checks on the problems that occurred in the previous rectification period and establish a ledger and responsibility list system for key issues and key enterprises, especially for the recurring issues that people are most concerned about, such as accessing the address book, users' location information, among others. We will increase punishments for those who access these databases when they are not necessary for usage scenarios, as they do not meet the minimum necessary principle of access of information collection. For entities whose rectification is not in place and the implementation results are poor, we will incorporate them into our credit management based on rectification. All in all, we will make sure that the rectified problems of the apps do not rebound or repeat so that people can have a better sense of gain and security and can use all kinds of apps in a safe and clean internet environment, ideally to meet the needs of ordinary people in all aspects of life, study, and work.

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Yicai:

We all know that everybody is now concerned about data security. What specific work has the MIIT implemented in data security management this year? In addition, the MIIT recently said that it will establish a sound management mechanism and technical protection system for data security protection and strictly enforce every step from the collection and storage to flow and use of data resources. Could you tell us how exactly these tools will be implemented? Thank you.

Tian Yulong:

Thank you for your questions. Please let Mr. Zhao Zhiguo answer your questions. 

Zhao Zhiguo:

Thank you for your questions. Data is one of China's basic strategic resources and features several important production factors. General Secretary Xi Jinping has emphasized that the country's data security must be effectively guaranteed. Based on its responsibilities, the MIIT has steadily promoted data security management in the information and communication industry, issued the guidelines for the construction of data security standard systems in the telecommunications and internet industries, published a number of industry standards such as the classification of online industry data and the identification of important data, launched a special campaign to improve the capabilities for protecting online industry data, issued the "Key Points of Compliance Assessment on Online Data Security of Telecom and Internet Enterprises (2020)," established a public service platform for online data security, strengthened industry data security supervision and inspection in accordance with the law, and organized 133 enterprises including Tencent and Baidu to sign data security self-discipline conventions. We have also guided enterprises to implement their main responsibilities, carried out trials and demonstrations, and strengthened the research and development, promotion, and application of key data security technologies. It is fair to say that we have undertaken a series of tasks to ensure the implementation of these key points.

Next, the MIIT will carry out work in the following areas in accordance with its responsibilities under the framework of relevant laws and mechanisms, which are: industry data security supervision, improving data security supervision capability building, and promoting the development of the data security industry.

First, we will introduce a data security management system. We will speed up the formulation of data security management policies in the industrial and information fields to better facilitate the implementation of the "Data Security Law" among industries. We will carry out related work such as the classification of industry data, the development of important data catalogs, build a standard system in the field of industry data security, and formulate important data security standards in the fields of the internet of vehicles (IoV) and the industrial internet.

Second, we will establish a data security certification system. We will organize research on the data security protection certification system and formulate assessment specifications for industry data security protection capabilities. We will establish an evaluation and certification mechanism involving industry organizations, scientific research institutions, and key enterprises to guide related certification work.

Third, we will carry out data security supervision and inspections. We will combine security assessments of basic telecommunications enterprises with "Two Randoms and One Disclose" inspections (that is, during the supervision process, the inspection objects are randomly selected, law enforcement inspectors are randomly selected, and the results of random inspections and investigation will be disclosed to the public in a timely manner) and other regulatory methods to establish and improve the industry's acceptance mechanism for complaints and reports, and urge enterprises to implement obligations of data security protection. We will establish mechanisms for monitoring and reporting industry data security situation and improve capacity building for risk information analysis, study, and handling.

Fourth, we will promote the development of the data security industry and support breakthroughs in key data security technologies through measures such as building key laboratories and innovative technology centers. We will cultivate backbone enterprises through multiple channels such as supporting the leading champion in a certain field, supporting "specialized, refined, distinctive, and innovative" small- and medium-sized enterprises, as well as integrating industry and finance. We will explore the development of disciplines related to data security and encourage colleges and enterprises to jointly cultivate data security talent.

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The Paper:

Under the guidance of the carbon peak and neutrality goals, many energy-intensive industries have begun to explore green transformation. How will the MIIT guide their green transformation? What's next for directing the green development of industrial industries? Thank you.

Tian Yulong:

Thank you for your questions. Mr. Huang Libin will answer these questions.

Huang Libin:

Thank you for your questions. Industry is one of the major areas of China's energy consumption and carbon emissions. Promoting green industrial development is an active and effective measure to fulfill the promise on achieving carbon emissions peak and carbon neutrality. MIIT will soon release the Plan for Green Industrial Development during the 14th Five-Year Plan Period and the Plan for Raw Material Industry Development during the 14th Five-Year Plan Period to promote the green and low-carbon transformation of industry, especially their energy-intensive sectors, strengthen the supporting role of the green manufacturing system, and amplify emission and carbon reductions at the source and from the aspects of industrial structure, energy consumption, production process, resource utilization, and product supply, etc.

The MIIT will speed up its advance toward reaching peak carbon in the industrial sector, and work with relevant departments to formulate action plans for carbon peaking in key industries such as nonferrous metals, building materials, steel and petrochemicals. We will also clarify the path for cutting industrial carbon emissions, promote major low carbon technologies, and carry out major demonstration projects for reducing carbon emissions to encourage all industries to achieve carbon peak targets.

Next, we will focus on the following six areas:

First, we will promote the high-end transformation of the industrial structure. We will resolutely curb the blind development of high energy consumption and high emission projects, improve and strictly implement policies on replacing production capacity, close down outdated production facilities, and develop strategic emerging industries and high-tech industries.

Second, we will accelerate the transition to low-carbon energy consumption. We will increase the proportion of clean energy consumption, boost energy utilization efficiency, improve energy management and service mechanisms, and build a clean, efficient and low-carbon industrial energy structure.

Third, we will promote the transition to recycled resources utilization. We will promote the coordinated use of primary energy resources, the recycling of renewable resources, the large-scale and comprehensive utilization of industrial solid waste, and the economical use of water resources, and reduce the output of industrial solid waste and waste water.

Fourth, we will promote the transition to clean production processes. We will vigorously promote green design, encourage existing enterprises to implement cleaner production technologies, promote the use of advanced and suitable environmental protection equipment in key industries, and promote stable and efficient governance capabilities.

Fifth, we will guide the green transition of product supply. We will increase the supply of green, low-carbon products and environmentally friendly equipment, so that we can provide a solid guarantee for a green and low-carbon transition in all sectors.

Sixth, we will improve the support system for green manufacturing. We will build a green public service platform, improve the green manufacturing standard system, implement green supply chain management, and improve the long-term mechanism for green and low-carbon industrial transition. Thank you.

Shou Xiaoli:

The last two questions, please.

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People's Posts and Telecommunications News:

How has the 5G situation developed in the first half of 2021? As the most innovative 5G application areas, what are the next priorities for "5G + industrial internet"? Thank you.

Tian Yulong:

Thank you for your questions. 5G is an important area that many people are paying attention to. In accordance with the decisions and deployments of the CPC Central Committee and the State Council, the MIIT has vigorously promoted the construction and development of 5G new infrastructure. With the joint efforts of all departments, local governments and industries, China's 5G industry has gradually expanded its ecosystem, become increasingly active in integrated applications, and has formed competitive systematic advantages. These include three main aspects:

First, we have maintained a leading position in 5G network construction. At present, we have built the world's largest 5G independent network. In total, 961,000 5G base stations are in operation, over 400,000 5G base stations have been jointly built and shared, and the number of 5G terminal connections has reached 365 million. Second, the advantages of the 5G industry continue to increase. Chinese companies continue to lead the world in the claiming of 5G standard essential patents, and Huawei and ZTE have more than 50% of the 5G equipment market share. Shipments of 5G cellphones in China stood at 128 million units in the first half of this year, accounting for 73.4% of the country's total cellphone shipments during the period. Third, the trend of 5G applications integrating into thousands of industries has become prominent. Since its commercialization two years ago, 5G technology has played an important role in such fields as industrial production, energy and medical services. It has also opened up a new path and provided a new engine for digital transformation in China's economy and society and development of the digital economy.

The industrial internet will be the focus of our work this year. We have relied on industrial internet innovation and development projects, focused on the 5G application industry, and worked hard on the research and development and industrialization of key system equipment. Especially in the application of "5G + industrial internet," we held on-site meetings to carry out demonstrations and promotions in key industries, key areas and advantageous regions. We have also presented typical cases to promote the application of "5G + industrial internet" and speed up the development of its integration. Therefore, a number of achievements have been made and we have gradually deepened the development of "5G + internet." At present, nearly 1,600 projects have been completed in building "5G + industrial internet," covering more than 20 key industries and fields of the national economy, which play an important role in transforming and upgrading the real economy to digital, networked and intelligent industries.

"5G plus industrial internet" will continue to be the focus of our work. We have issued two action plans: one is the "Sailing" action plan for 5G applications, and the other is the industrial internet innovation and development action plan. We will focus on four areas.

First, we will continue to strengthen the network foundation. Adhering to the principle of appropriately leading the way, we will promote the construction of 5G networks, speed up the coverage of 5G networks in key areas and industries such as factories and industrial parks, carry out trials of 5G private networks, and enhance the network supply capacity of the industry.

Second, we will strengthen industrial support. We will accelerate the development of integrated application standards for "5G plus industrial internet" in the vertical industry and continue to promote the development of customization. In particular, we will make great efforts to provide high-quality technical products in the R&D and industrialization of 5G chips, modules, terminals, and other key products and devices.

Third, we will continue to enrich integrated applications. We will carry out the construction of pilot demonstration applications for the industrial internet and pilot areas for integrated applications, continue to release the second batch of application scenarios and industrial practices, and guide local governments, based on their distinctive and competitive industries, to create a batch of industry and field benchmarks through a series of on-site meetings and further deepen integrated applications.

Fourth, we will focus on improving the 5G ecosystem. We will coordinate with other departments to create synergy and promote the innovative development of "5G plus industrial internet." We will continue to encourage local governments to provide support in areas such as 5G construction sites, electricity, and human resources. At the same time, we also encourage enterprises to keep innovating, give full play to their subjective initiatives, create synergy, make collaborative innovation, and achieve win-win cooperation so that "5G plus industrial internet" will play a leading role in the digital economy. Thank you.

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The Poster News APP:

Data shows that in the first half of this year, PPI rose by an average of 5.1%, 3 percentage points higher than that in the first quarter. How does the Ministry of Industry and Information Technology view the cost pressure brought by the rise of PPI on the middle and downstream enterprises? Also, will there be further measures to help micro, small and medium-sized enterprises cope with the crisis? Thank you.

Tian Yulong:

Thanks. Mr. Huang Libin will answer your questions.

Huang Libin:

Thanks for your questions. Due to the rapid economic recovery and multiple internal and external factors, the price of raw materials has risen sharply and fluctuated at a high level since the beginning of the year. In the first half of the year, PPI rose by 5.1% on average. In the second quarter, the year-on-year increase in PPI was significantly higher, putting great pressure on the costs of middle and downstream industries and related enterprises and squeezing their profit margins. Among them, most small and medium-sized enterprises are in the middle and lower reaches of the industrial chain, and their bargaining power is not strong. Therefore, it is difficult for them to absorb the pressure of rising costs caused by the sharp rise of prices in raw materials in a short time. The impact of rising costs on the production and operation of small and medium-sized enterprises is relatively more prominent.

The reasons for recent rising commodity prices are complicated. On the whole, global demand is recovering faster than supplies, domestic demand is recovering faster than international demand, and liquidity is happening faster than the real economy is recovering. Therefore, prices increases are, to a large extent, the result of the mismatch between supply and demand, the influence of external inputs, and speculation. Judging from the later trend, unlike the "supercycle" of rising commodity prices in the 1970s and the beginning of this century, this round of prices increase is more the result of the superposition of short-term factors. Deep-seated barriers such as high global debt, polarization between the rich and the poor, and the aging population make it difficult for demand to expand over a long time, and the possibility of a significant contraction in supply is relatively small. Therefore, it is difficult to form a "supercycle."

The CPC Central Committee and the State Council attach great importance to the impact of rising raw material prices on middle and downstream industries as well as micro, small and medium-sized enterprises. The executive meeting of the State Council has made a special study on the issue of rapid commodity prices increases. Recently, it has used monetary policy tools such as lowering the reserve requirement ratio to further strengthen financial support for the real economy, especially for micro, small and medium-sized enterprises, to hedge the impact of rising commodity prices on the production and operation of those enterprises.

In the next step, we will cooperate with relevant departments to ensure the supply and price of bulk commodities; strengthen publicity and guidance and policy interpretation; support upstream and downstream industries in establishing a long-term stable cooperative relationship; guide upstream and downstream industries to stabilize the supply of raw materials and the coordination of production, supply, and marketing; coordinate to deal with the risk of market price fluctuation; and resolutely crack down on hoarding, malicious speculation, and price hiking. Thank you.

Shou Xiaoli:

Thanks to our speakers, and thank you, friends from the press. That's all for today's press conference. Goodbye.

Translated and edited by Wang Yiming, Wang Wei, Wang Qian, Liu Sitong, Yang Xi, Lin Liyao, Yuan Fang, Guo Yiming, Li Huiru, Zhang Liying, Zhang Rui, Liu Qiang, Yan Xiaoqing, Xiang Bin, 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.