.

Read in Chinese

Speakers:

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

Tao Qing, a person in charge of the Bureau of Operation Monitoring and Coordination, MIIT

Wang Peng, a person in charge of the Bureau of Information and Communications Administration, MIIT

Chairperson:

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

Date:

July 19, 2022

Xing Huina:

Friends from the media, good morning. Welcome to this press conference held by the SCIO. This is a regular briefing on China's economic data. Today, we are joined by Mr. Tian Yulong, spokesperson and chief engineer of MIIT; Ms. Tao Qing, a person in charge of the Bureau of Operation Monitoring and Coordination of MIIT; and Mr. Wang Peng, a person in charge of the Bureau of Information and Communications Administration of MIIT, to brief you on the development of China's industry and information technology in the first half of 2022, and to take your questions.

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

Tian Yulong:

Ladies and gentlemen, friends from the media, good morning. I'd like to begin by expressing my heartfelt gratitude to you for your interest in and support for the development of industry and information technology. Next, I'll brief you on the developments in the first half of 2022. 

In the first half of the year, MIIT consistently upheld Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implemented the guiding principles of the Central Economic Work Conference and the arrangements in the Government Work Report, and followed the overall requirements set by the central authorities to "contain the pandemic, stabilize the economy, and ensure safe development." We effectively coordinated pandemic prevention and control with economic development, responded to new risks and challenges brought about by changes in both the domestic and international landscapes, and successfully reversed the declining trend in industrial economic indicators. The industrial economy stabilized and rebounded, showing a recovery momentum and giving full play to its role as ballast for the economy.

First, we made every effort to stabilize the industrial economy and restore its growth. In the first half of this year, we resolutely implemented a package of policies and measures introduced by the central authorities to firmly stabilize the economy, and worked with other parties to produce results at a faster pace. There were four highlights among the main economic indicators. First, industrial production stabilized and recovered quite visibly. From January to June, the added value of industries above designated size grew by 3.4% year on year. Growth registered 0.7% in May after dropping to -2.9% in April, and rose quickly to 3.9% in June, showing a V-shaped trend. Second, the manufacturing sector's share in GDP increased significantly. The added value of manufacturing above designated size grew by 2.8% year on year, accounting for 28.8% of GDP, 1.4 percentage points higher than in 2021. Third, exports played a bigger role in driving growth. The export delivery value of industrial enterprises rose by 10.8% in the first six months of the year. Specifically, growth was 11.1% in May and 15.1% in June after falling to 1.9% in April. Fourth, manufacturing investment maintained a high growth rate. Investment in manufacturing increased by 10.4% year on year, with 7.4% coming in the second quarter, 3.2 percentage points higher than the growth rate of fixed asset investment.

Second, we worked hard to keep key industrial and supply chains smooth. Industrial and supply chains are the lifeblood of industrial economy. The new round of COVID-19 outbreaks had a significant impact on industry and supply chains. In the first half of this year, we took effective measures, and promptly established and implemented a nationwide white list system for enterprises centered on key areas, key industries, key companies and key areas of people's livelihoods while also considering anti-pandemic medical supplies, key supplies for strategic industries and other resources, which helped realize cross-departmental and cross-regional linkage and coordination. By encouraging enterprises on key nodes along the chains to resume work and production, and promoting smooth operation of the industrial economy through nodes driving chains and overall development, we solved more than 54,000 problems through the system and achieved remarkable achievements. At present, China's industrial enterprises above designated size, including 22,500 enterprises on the white list, have achieved stable production, strongly supporting the steady growth of the industrial economy.

Third, the resilience of industrial development continued to grow. In the first half of this year, the added value of high-tech manufacturing rose by 9.6% year on year, demonstrating strong resilience and serving as an important engine for high-quality development of the manufacturing industry. Emerging industries have become an important new driving force for promoting transformation and upgrading as well as strengthening industrial resilience. First of all, we vigorously fostered advanced manufacturing clusters and sped up the development of emerging industries including new-type displays, intelligent photovoltaics and new materials. In addition, we encouraged the introduction of three-year action plans for digital transformation of the manufacturing industry, implemented smart manufacturing projects, and accelerated the development of industrial and supply chains for major equipment. Furthermore, we drew up low-carbon technology roadmaps for key industries and carried out green and low-carbon technology transformation. Also, we organized a nationwide campaign to increase the variety and quality of products and nurture domestic brands, and continued to promote a new round of activities encouraging the use of new energy vehicles and green building materials in the countryside, so as to improve supply and stimulate the vitality and potential of consumption.

Fourth, we redoubled efforts to help small and medium-sized enterprises (SMEs) ease difficulties and stabilize operation. Developing SMEs is an important foundation for stabilizing employment and promoting growth, and a vital task for ensuring market entities. In collaboration with relevant departments, we introduced a series of policies and measures to accelerate the implementation of a package of tax and fee reduction policies. In the first half of the year, nearly 1.8 trillion yuan in additional tax and fee cuts, tax refunds, and postponed tax payments were delivered to SMEs. We took solid and special actions to provide services for SMEs, guarded against and cleared arrears owned to them, and promoted integrated innovation among large, medium and small-sized enterprises, among others. To expedite the step-by-step development of high-quality SMEs, we will strive this year to foster around 3,000 "little giants" (specialized and sophisticated SMEs producing new and unique products) and a group of distinctive SMEs industrial clusters. We will organize comprehensive inspections to reduce the burden on enterprises and promote the development of SMEs. We will not only help SMEs ease difficulties and stabilize operation, but also contribute to their steady and sustained development. In general, the added value of SMEs above designated size grew by 3.7% year on year in the first half of this year, faster than the overall industrial growth rate.

Fifth, we have strongly promoted the integrated and innovative development of information and communications. We have stepped up the development of the information and communications industry, and promoted the deep integration of the new generation of information technology with the real economy. In the first half of the year, the information and communications industry developed steadily. The revenue of the telecommunications industry increased by 8.3%. The revenue of the software and information technology service industry is expected to maintain double-digit growth. Investment in fixed assets of telecommunications grew by 24.6% year on year. We have continued to improve the information infrastructure. More than 1.85 million 5G base stations have been built and put into use. We have accelerated the promotion of integrated applications, advancing the construction of fully connected 5G factories. The industrial internet has been widely applied in various fields of the manufacturing industry. We have launched actions to improve information and communications services, further promoted improvements to internet applications for the convenience of senior citizens and made barrier-free facilities available, so as to improve the well-being of all people, including senior citizens and people with disabilities. We have continued to consolidate the foundation of cybersecurity, making more efforts to prevent and address telecommunications and internet fraud, and maintaining the safe and stable operation of the basic telecommunications network.

Ladies and gentlemen, in the first half of the year, China's industrial economy showed strong resilience and development momentum with enterprise vitality being unleashed, which fully proves that the series of economic policies are paying off under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core. We are confident about and capable of dealing with various difficult challenges, and consolidating and maintaining continuous improvements to the overall industrial economy. Next, we will thoroughly implement the decisions and deployments of the CPC Central Committee and the State Council, make stability our top priority, pursue progress while ensuring stability, promote the high-quality development of industry and information technology, and set the stage for the 20th CPC National Congress with concrete actions.

That is all for my introduction. My colleagues and I are now happy to answer your questions. 

Xing Huina:

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

CCTV:

Due to multiple factors including the pandemic and the Ukraine crisis, industrial production was temporarily impacted in the first half of the year, but has generally shown a trend of stabilization and recovery. How do you see industry's role as ballast for the macroeconomy? What measures will MIIT take to boost the performance of industry in the second half of the year? Thank you.

Tian Yulong:

Thank you for your questions. I just briefly introduced the performance of industry as a whole. Generally speaking, China's industry still faced relatively severe and complex internal and external environments in the first half of this year, and all parties involved have made strong efforts to promote stable economic growth. In the first two months of the year, industry experienced a stable start with growth beyond expectations. Since March, industry has suffered a sudden shock, even seeing a large fluctuation. The CPC Central Committee with Comrade Xi Jinping at its core has steered the development course and acted decisively. The State Council issued a package of policies to stabilize the overall economy, which has provided strong support for stable industrial growth with macro policies. MIIT and relevant departments have given greater prominence to stabilizing industrial growth, stepping up the implementation of measures to ensure stable economic growth. All relevant government departments have coordinated to adopt all possible measures and ensure they produce effects early on. Local authorities have also taken on their responsibilities, actively issuing supportive measures and strengthening their implementation. Enterprises have overcome difficulties to operate at full capacity and ensure stable production. Thanks to all these concerted efforts, the total value-added of industrial enterprises above designated size grew by 0.7% and 3.9% in May and June, respectively. It's worth mentioning that the Purchasing Managers' Index (PMI) for China's manufacturing sector rebounded above the 50-point mark indicating economic expansion in June after contracting for three months in a row, which was by no means easy to achieve. The industrial economy has clearly stabilized and rallied, and given full play to its role as ballast for the macroeconomy. I'd like to elaborate from the following aspects:

First, in terms of the proportion of manufacturing in GDP, in the second quarter, the value-added of manufacturing enterprises above designated size accounted for 28.8% of GDP, up 1.4 percentage points over 2021. This is a very favorable signal. In terms of investment contribution, investment in the manufacturing sector increased by 7.4% in the second quarter, which was 3.2 percentage points higher than the growth rate of fixed asset investment, demonstrating the manufacturing sector's role as the engine driving growth. Industrial exports quickly turned from falling to rising, achieving double-digit growth. The equipment manufacturing sector also rebounded rapidly. In June in particular, it contributed more than 70% of overall industrial growth. The strong performance of the equipment manufacturing sector indicates that its role in the industrial system has gradually become apparent.

In general, in the first half of the year, the industrial economy overcame the shocks and pressure, withstood the challenges, and made hard-won achievements. This should be attributed to the strong leadership of the CPC, the institutional strengths of the socialist system, China's complete industrial system and its super-sized domestic market, and in particular, the series of policies issued by the CPC Central Committee and the State Council to stabilize economic growth. As a result, effective investment has continued to expand, consumption potential has been gradually released, and the internal forces powering economic growth have continued to increase. We believe that the industrial economy will continue to recover. The fundamentals of the industrial economy remain unchanged, and they will maintain long-term growth. Of course, we are also soberly aware that in the face of increased pressure both inside and outside of China, weakening global growth and high inflation will inevitably have an effect on trade demand, the stability of global supply chains, and commodity prices. Therefore, the situation we are facing remains complicated, especially in the second half of the year.

Looking forward, we will continue to follow the decisions and arrangements of the CPC Central Committee and the State Council, make economic stability our top priority and pursue progress while ensuring stability. We will put boosting the industrial economy in a more prominent position, and keep major indicators of the industrial economy within the appropriate ranges so as to create a favorable environment for the 20th CPC National Congress. We will adopt the following measures: First, we will accelerate the solid implementation of a package of policies to stabilize the industrial economy. A package of policies to stabilize the economy, especially those to boost the industrial economy, should be fully implemented. We will support local authorities to issue policies and measures which will produce effects earlier and have greater intensity. We will work with relevant departments to strengthen special supervision of efforts to stabilize industrial growth, monitor major indicators such as the investment and proportion of the value-added of the manufacturing sector in GDP, and establish a sound notification system. We will continue to enhance explanations of policies and ensure all kinds of enterprises can benefit from the policies, so as to strengthen their confidence in development, and boost market expectations.

Second, we will encourage more investment and consumption. The 14th Five-Year Plan is already in the works, and a batch of pillar projects and technological upgrade programs have already been launched. The new types of information infrastructure projects should begin as soon as possible, especially in 5G, gigabit optical networks and industrial internet. Meanwhile, we will enhance the driving force to encourage consumer spending. I mentioned earlier the campaign to promote the consumption of quality products nationwide and the programs that bring new energy vehicles and environment-friendly construction materials to rural areas. We will also nurture cities that play a demonstrative role in information consumption. In a word, a series of measures will be taken to promote consumption and investment.  

Third, we will keep industrial and supply chains stable and smooth. A crucial step is focusing on key regions, industries and enterprises, and helping enterprises stabilize production and reach the output goals. Regarding the prices of key products, we have established a "red-yellow-blue" three-tier warning system to ensure the supply of major commodities and upstream raw materials. We will also work to ensure the supply of fertilizers during summer, autumn, and winter. 

Fourth, we will increase our efforts to help SMEs tide over difficulties. Generally speaking, SMEs still face difficulties in their operation. We will prevent and resolve debt incurred by SMEs through special campaigns, particularly comprehensive inspections, to ease SMEs' burdens and promote their development. We will also improve our service system for SMEs, increase our supportive policies, and provide more precise services. SMEs now need more targeted policies to be implemented and effective. Therefore, we will work on that in the year's second half. Thank you. 

Tianmu News:

You mentioned the digital economy a while ago. The scale of the digital economy has been rising in China, with its proportion to the country's GDP increasing continuously. I wonder what steps will be taken by the MIIT to promote its rapid growth. Thank you.  

Wang Peng:

Thank you for your questions. General Secretary Xi Jinping attaches great importance to the development of the digital economy and has made important instructions on several occasions. Following the decisions and arrangements of the CPC Central Committee and the State Council, the Ministry of Industry and Information Technology has sought to work on weaknesses and build the strength of industries, ramped up our innovation capabilities, and has made positive progress in the deep integration of digital technologies and the real economy. China's digital economy has ranked second in the world for years, and its contribution to the country's economic growth has been rising. Let me introduce it briefly from two dimensions. First, the size of the digital economy has expanded continuously. In the first half of the year, the "contactless economy" such as online shopping, online education, and telemedicine saw faster development. The digital economy maintained a sound momentum, injecting strong vitality into economic growth. From January to June, the total revenue of the electronic information manufacturing industry, software industry, communications industry, and the internet surpassed 10 trillion yuan. These industries showed steady and positive momentum, and industry resilience continues to rise. Second, the digital transformation of industries has become faster. We worked to deepen the integration of the new generation of information technology and manufacturing industry, and the industrial internet has seen more solid, innovative development. The "5G+Industrial Internet" 512 Project forged ahead, which already has over 3,100 projects under it, and 700 were newly added in the second quarter of this year. We also implemented the intelligent manufacturing program, nurturing over 6,000 solution providers and covering more than 90% of the manufacturing sector. The numerical control rate of core procedures in industrial enterprises above the designated size reached 55.7%, and the popularization rate of digital research and design tools reached 75.1%. Traditional industries saw the faster process of digital transformation. 

Next, the Ministry of Industry and Information Technology will work on the following five aspects to build a sound policy environment for the digital economy. 

First, we will work on core technologies to promote the innovation and development of the digital industry. We will thoroughly implement the innovation-driven development strategy, seek to become independent in key and core technologies, make breakthroughs in the bottleneck of crucial sectors, and cultivate competitive companies that can dominate in their respective ecosystems to increase the resilience and competitiveness of industry and supply chains. 

Second, we will optimize the internet layout and quicken the development of new types of digital infrastructure. We will actively expand the construction of the 5G network and gigabit optical network as appropriate, implement the innovative development program of industrial internet, and map out the construction of intelligent, environment-friendly data and computing facilities. 

Third, we will promote the integration of the digital economy and the real economy, considering the needs of industries. We will extensively carry out the initiatives of the manufacturing sector's digital transformation and SMEs' digital empowerment. We will also expand the application scenarios of industrial big data, cultivate a batch of SMEs with high growth potential, advanced technology and strong market competitive edge as well as single-product specialists in the manufacturing industry, and build a landscape where small, medium, and large-sized enterprises develop together. 

Fourth, we will stimulate the vigor and potential of data factors to increase the economy's driving force. We encourage centrally administered state-owned enterprises and internet companies to make transparent their data that are needed by the market. We will also select several regions and industries to carry out pilot programs on the national data management standard to increase data supply nationwide and its quality. We will also issue guidance on data factor application scenarios and ensure the smooth circulation of data factors. 

Fifth, we will strengthen the governance of the digital economy to create a healthy ecosystem for its development. We will work on institutions, supervision, and security to improve our governance capabilities in the digital economy. We will deepen international cooperation on the digital economy, join hands to build an open, equal, just, and non-discriminatory environment for the digital economy, and facilitate the building of a community with a shared future in cyberspace. Thank you.  

Xinhua News Agency:

The consumer goods industry is closely linked with people's well-being and is a traditional advantageous industry in China, and it is also the supply foundation for expanding domestic demand. My question is, how will the MIIT promote the high-quality development of the consumer goods industry and increase its role in propping up the entire industrial economy? Thank you. 

Tao Qing:

Thank you for the questions. The consumer goods industry covers all aspects of people's lives, including clothing, food, housing, daily necessities, transportation, childcare, education, health care, and elderly care. It also plays a vital role in creating employment, boosting export, and promoting economic growth. Most of China's consumer goods sectors have become market-based. They entered the international market early and have a solid ability to survive. From January to June this year, the value-added of the consumer goods industry increased by 4.6% year on year, demonstrating strong development resilience. Recently, the MIIT, in collaboration with other relevant departments, issued guidelines on the high-quality development of chemical fibers, industrial textiles, and light industries. We also issued policies such as an action plan on leveraging the role of digitalization to help the consumer goods industry increase the variety of products, raise their quality, and build brands. These efforts will deepen the supply-side reform and promote the industry's high-quality development. Going forward, we will focus on increasing the variety of products, raising their quality, and building their brands. We will take measures on both the supply and demand sides, and continuously improve the supply capacity of consumer products and services. We will strengthen areas of weakness, push ahead with industry upgrading, enhance sustainability, promote people's wellbeing, and meet people's needs for a better life.

The first is to promote consumption upgrades through innovative products. Focusing on health care, elderly care, childcare, home life, and other areas related to people's wellbeing, we will encourage enterprises to integrate customization, experience, environmental protection, intelligence, fashion, and other new consumer elements into their product design and manufacturing. We want them to create new demands through innovation and foster new businesses, scenarios, models, and growth engines to meet consumers' needs for multi-level, personalized, high-quality products and services.

The second is to bolster consumer confidence by improving supply. In clothing and textiles, home appliances, food and medicine, and other sectors, we will move faster to build factories demonstrating smart manufacturing, and achieve quality control throughout the life cycle and coordinated development of production, sales, and usage. We will accelerate the building of a quality traceability system for key consumer goods and optimize information inquiry services so that consumers can buy products confidently, use them with peace of mind, and have ever stronger confidence in consumption.

The third is to drive consumption growth with high-quality brands. To further leverage the role of consumption in sustaining growth, in the third quarter, the MIIT focused on the campaign to enhance product variety and quality and create name brands. We organized relevant local governments, departments, industry associations, and e-commerce platforms to hold special promotions, special exhibition tours, and industry activities. The aim was to strengthen the publicity of excellent enterprises and products, launch good products, build brand reputation, and promote stable growth. Thank you! 

The Paper:

The problem of poor connection between industrial production and sales still exists, and enterprises in some sectors face difficulties. What measures will the MIIT take to keep the performance of industry stable? Thank you.

Tao Qing:

Thank you for your question. Unexpected factors at home and abroad have taken a short-term toll on industry since March, but industry has gradually recovered since May with the implementation of policies and measures to stabilize the economy. From the perspective of sectors, the recovery featured several characteristics. First, the production of most sectors has rebounded. Among the 41 major sectors, the value-added of 33 registered positive growth in the first half of the year, of which nine achieved double-digit growth. In May and June, the value-added of 33 and 27 sectors grew faster than the previous month. Second, critical industrial and supply chains recovered at a more rapid pace. After a brief decline in April, the value-added of equipment manufacturing, which was hit hard by the epidemic, returned to positive growth in May, and the growth rate reached 9.2% in June. In particular, the recovery of the industrial and supply chains of the automobile industry was more prominent. With a substantial increase of 16.2% in June, the value-added of automobile manufacturing reversed the previous month's decline of 7%, which effectively drove the overall industrial growth. Third, high-tech manufacturing continued its growth momentum. In the first half of the year, the value-added of high-tech manufacturing increased by 9.6% year on year, significantly higher than that of overall industry. In particular, the value-added of electronics manufacturing increased by 10.2%, maintaining double-digit growth, and the trend of transformation and upgrading remained unchanged. Fourth, some energy and raw material sectors maintained rapid growth. We have redoubled our efforts to keep supply and price stable. In the first half of the year, the value-added of the mining industry increased by 9.5% year on year, of which the growth rate of the coal industry exceeded double digits, and the output of potash fertilizer increased by 9.4%. Fifth, we have taken strong measures to effectively ensure the supply of products essential to people's daily life. In the first half of the year, the value-added of the alcohol, beverages, and refined tea sector increased by 8.4% year on year. The production of food, agricultural and sideline products, and other industries grew steadily, and the supply of daily necessities was adequately guaranteed.

At the same time, we must see that the operation of enterprises in different industries varies due to differences in the industrial development cycle and the epidemic's impact. Some mid- and downstream sectors face pressure from high and fluctuating prices of bulk raw materials and low market demand. The recovery of some consumer goods sectors is lagging. SMEs are still facing difficulties in production and operation. In the next step, we will focus on enterprises and industries with problems, have clear priorities, and take category-based measures. We will facilitate the smooth circulation of industrial and supply chains, move faster to ensure stable production and reach output targets, and step up efforts to ensure the supply and price of energy and raw materials remain stable. We will boost industrial investment and consumption demands, implement targeted policies to ease the difficulties of enterprises, continuously enhance the balance and stability of the recovery and development of industry, and continue to consolidate the foundation for industry's steady recovery. Thank you! 

BeijingNews.com.cn:

The new energy vehicle (NEV) industry is a bright spot in the year's first half. Earlier, the MIIT said it was studying whether to continue the preferential policies of purchase tax for NEVs. Is there any progress made in this regard? What is the next step to promote the consumption of NEVs? Thank you.

Tian Yulong:

Thank you for your questions. This year, the development of the NEV industry has attracted wide attention. As it is closely related to the life of ordinary people, our enterprises have overcome the epidemic's impact to achieve steady and rapid development, which is also noticeable worldwide. There are three main highlights:

First, the production and sales have reached a new high. The latest data showed that 590,000 vehicles were produced and 596,000 were sold in June, each rising 1.3 times year on year. The numbers reached 2.661 million and 2.6 million respectively in the first half of this year, both up 1.2 times year on year. The production and sales scale has hit a record high, with a market penetration rate of 21.6 percent.

Second, fresh breakthroughs have been made in technological innovation. The newly developed laser radar, homemade chips, and vehicle-borne basic computing platforms have been loaded into vehicles, with technological innovation constantly improving. Batteries have also witnessed breakthroughs with such highlight indicators: the energy density of mass-produced ternary batteries reached the world's highest level of 300 Wh/kg, and cobalt-free batteries topped 240 Wh/kg. Semi-solid-state batteries are close to mass production; therefore, we have strong competitiveness in NEV power batteries.

Third, the upgrading of supporting systems has been accelerated. In the first half of this year, 1.3 million new charging/ battery swap facilities were added, up 3.8 times year on year, including 920,000 private EV charging piles and 380,000 public ones. The building of public facilities is critically important as the demand for NEVs is growing stronger. More than 10,000 power battery recycling service sites have been built, realizing the nearby recovery of retired batteries, which is convenient for users. 

The issue of the purchase tax exemption you have mentioned is of public concern and highly valued by the State Council. The Standing Committee of the State Council has asked the relevant departments to study the issue of extension of the purchase tax exemption for NEVs in light of the actual situation. Currently, the relevant departments are expediting studies to release the relevant policies as soon as possible.

In general, China's NEVs have entered a rapid stage of development. Stabilizing and expanding NEV consumption is a significant way to ensure the stable development of the automobile industry, which is also an important part of our work in the future. In accordance with the decisions and arrangements of the CPC Central Committee and the State Council, we will work with relevant departments to further expand NEV promotion to boost automobile consumption, contributing to the overall stability of the economy. Our work will focus on the following aspects. First, we will continue to improve the quality of products by constantly improving the technical safety standards of NEVs, raising the performance level of the related power batteries, including out-of-control alarm, safety protection, low-temperature adaptability, and other performance levels, so that consumers can buy and use them with confidence. At the same time, we should accelerate the integrated development of electrification and intelligent networking and develop more services that can meet consumers' needs, to improve the driving experience and add a modern touch. On the other hand, we should create a favorable environment for use, strengthen industrial monitoring, and strive to keep the supply and prices of automobile chips and upstream raw materials stable, which will have a great impact on the automobile industry. We will ensure stable supply and prices and make every effort to keep industrial and supply chains stable and smooth. We will implement the State Council's requirement to steadily boost the consumption of automobiles and other bulk commodities and encourage localities and regions where conditions permit to introduce substantive policies to boost consumption. We will make concerted efforts to organize a new round of campaigns to promote NEVs in rural areas, electrify all public facilities in pilot cities, accelerate the construction of charging/ battery swap facilities, foster information sharing and unified settlement to coordinate NEVs consumption, safe driving and the stable development of the whole industry. Thank you. 

PPTN (People's Posts and Telecommunications News):

In recent years, the industrial internet has played an important role in helping enterprises resume work and production and promoting digital transformation. What progress has been made in the integrated application of the industrial internet during the first half of this year? What plans and measures will be taken in the year's second half?

Wang Peng:

Thanks for your questions. The CPC Central Committee and the State Council attach great importance to the development of the industrial internet. This year marks the fifth year for us to implement General Secretary Xi Jinping's important instructions and further carried out the innovative development strategy of the industrial internet. Generally speaking, the systematic development of China's industrial internet has achieved remarkable results, which provided strong support for the digital transformation of the economy and society.

Since the beginning of this year, we have accelerated the development of the industrial internet in accordance with the requirements of the central government's work report, and made new progress in all aspects. I will give you a brief introduction from the following four aspects. First, the network has a more solid foundation. The number of "5G+Industrial Internet" national projects increased by 700 in Q2, bringing the total number to over 3,100. An analysis system for industrial internet identification has been basically constructed. The average daily resolution volume of national top-level nodes increased significantly, reaching 150 million. The second-level nodes have covered 34 key industries and 29 provincial-level regions across the country. Second, the platform system is blooming. More than 150 featured platforms with industrial and regional influence have been established, and 28 cross-industry and cross-field industrial internet platforms have been selected. The number of industrial equipment connected to key platforms now exceeds 79 million, and the number of industrial apps exceeds 280,000. Third, the security guarantee has been optimized simultaneously. A technical monitoring and service system has been basically established to coordinate work at the national and provincial levels as well as those to do with enterprises, and its institutional construction, technical means, and service capability have been improved simultaneously. Fourth, integration and empowerment have been accelerated. The industrial internet has been applied in 45 major national economic categories and has been constructed in industrial bases, industrial parks, and key enterprises. Its industrial scale exceeded one trillion yuan, which empowers the capabilities, value, and wisdom across all industries. 

Next, we will resolutely implement the decisions and arrangements of the CPC Central Committee and the State Council, issue new policy measures for specific guidance, and upgrade the industrial internet. Efforts will be made in the following three aspects. First, we will focus on key links in industries and enhance our innovation capacity. We will further carry out innovation and development projects of the industrial internet, promote the integration of industrial internet demonstration projects, and concentrate on equipment connectivity, data innovation and application, equipment and platform security, and other key areas. A number of demonstration projects will be arranged, a series of urgently-needed standards will be formulated, and a batch of landmark results will be spread. Second, we will focus on key transformation areas and widen industrial applications. Factories fully connected with 5G in key industries will be constructed to accelerate the expansion of 5G from a supporting role during production to a core role. We will establish digital transformation centers of the industrial internet, improve the layout of public service innovation carriers, and accelerate large-scale applications and promotion. A series of application reference guides and safety protection guides will be compiled for different industries to provide guidance for enterprises. Third, we will focus on the application ecosystem and strengthen the synergy between supply and demand. "5G+Industrial Internet" on-site meetings will be organized for both information and communication enterprises and industrial enterprises to work together. In-depth activities will be increased to promote industrial internet applications in industrial parks and county economies. We will give full play to the industrial internet working group and take multiple measures to deepen industry-finance cooperation and industry-education integration. Thank you. 

China Daily:

Due to the impact of the international environment and the domestic COVID-19 epidemic, downward pressure on the economy has continued to mount this year. However, we have noticed that the information and telecom industry has maintained overall stability and become a bright spot for economic development in H1. Please give us an introduction to the development of the information and telecom industry. Thank you.

Wang Peng:

Thanks for your question. In H1, we earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council, remained committed to the general principle of pursuing progress while ensuring stability, and tried our best to overcome the impact of the epidemic. We accelerated the integration of information and telecom technology through all sectors of the economy and society, and consolidated healthy trends toward stable growth for the industry.

First, emerging growth drivers continued to grow. In H1, the total volume of the telecom businesses grew by 22.7% year on year, and their revenue increased by 8.3%, 5.8 percentage points higher than GDP growth, contributing significantly to economic growth. The industry structure has been optimized, and emerging businesses, including internet data centers, big data, cloud computing, and the Internet of Things became important driving forces. In H1, the revenue of emerging businesses reached 162.4 billion yuan, up 36.3% year on year, accounting for 19.9% of the entire industry. The industrial transformation has achieved remarkable results.

Second, our supporting role became prominent. From the vantage point of network construction, infrastructure stayed ahead. The integration of a "double gigabit" network further advanced, covering 400 million households with gigabit optical fiber networks. A total of 1.854 million 5G base stations were established and opened, 300,000 of which were newly opened in Q2. We made the realization of "5G access to every county and broadband access to every village." The number of national-level internet backbone direct connection points reached 19, while network delay and packet loss rates dropped significantly. From the vantage point of serving social development, the empowerment of integrated application accelerated. We sped up the integrated application of 5G and gigabit optical fiber networks in industry, medical care, education, transportation, and other fields. The number of 5G application cases exceeded 20,000. The industrial internet has been expanded in industrial clusters, green, low-carbon, safe production, and other sectors, creating many new benchmarks at the workshop level, enterprise level, and cluster level.

Third, domestic demand has been expanded to help unleash potential. In terms of investment, in H1, fixed-asset investment in telecommunications reached 189.4 billion yuan, up 24.6% year on year, 18.5 percentage points higher than the national growth rate of fixed-asset investment (excluding rural households), which created new growth in communication manufacturing, internet, and software services amid the epidemic. In terms of consumption, mobile internet traffic increased by 20.2% year on year. Online applications such as online office work, livestreaming, online food delivery, and short videos flourished, and information consumption continued to expand and upgrade.

Fourth, digital facilities to benefit the people have become more robust. It is mainly reflected in the following three improvements. First, user service awareness has been improved, and basic telecom enterprises have realized cross-regional handling of common telecom services such as the "Family Network." Meanwhile, 33 key internet companies have established manual customer service hotlines, and 137 companies are connected to the internet information service complaint platform. Second, information accessibility has improved, and the aging-friendly transformation of internet applications has been further advanced. For example, 452 websites and apps completed the aging-friendly transformation and passed the test and evaluation. Third, the protection of user rights and interests has been improved, and a total of 6.3 million app tests have been completed, realizing the full coverage of apps on the shelves of mainstream application stores in China, and app management capabilities have been significantly enhanced.

Next, the MIIT will continue to accelerate network construction and integrate innovative applications following the decisions and arrangements of the CPC Central Committee and the State Council and continuously promote the high-quality development of the information and communication industry. The first is to clear the information artery, deepen the joint construction and sharing of 5G, and continue to improve the depth and breadth of "dual-gigabit" network coverage. We will continue to promote universal telecom services and strive to build 600,000 5G base stations this year, with more than 2 million total. The second is to cultivate new momentum for development. We will accelerate the promotion and upgrading of the industrial internet, promote the pilot demonstration of the industrial internet in an integrated manner, and implement the "10, 100, and 1000" program of 5G industry applications. This will mean selecting 10 vertical industries, with each industry forming 100 benchmarks, and building 1,000 5G industry virtual private networks, to help the digital transformation of the industry. The third is to enhance people's sense of gain. We will further implement the aging-friendly transformation and upgrading projects on internet applications, strengthen the protection of the rights and interests of telecom and internet users, further regulate the operating behavior of basic telecom companies and internet companies, and create a favorable environment for information consumption. The fourth is to build up a safety fence. We will improve the capabilities of internet service and emergency response, strengthen cybersecurity guarantee, improve the security management system in the integrated fields of the industrial internet and the internet of vehicles (IoV), and promote the accelerated development of cyberspace security industry. Thanks! 

Yicai:

The stability of the industrial and supply chains is crucial for recovering the industrial economy. What measures has the MIIT taken in the first half of this year to ensure the stability and smoothness of the industrial and supply chains? In the second half of the year, what other considerations are there in promoting enterprises to reach stable production and reach the target output? Thank you.

Tao Qing:

Thank you for your questions. The industrial and supply chains are the backbone and blood vessels of the industrial economy. Since March, they have been affected by the COVID-19 epidemic and other factors. The supply chain and the industrial chain have faced many blockages, causing some industrial enterprises to stop work and production. The MIIT resolutely implements the decisions and arrangements of the CPC Central Committee and the State Council, following the overall requirements of preventing the epidemic, stabilizing the economy, and developing safely, and regards a smooth industrial chain and supply chain as the primary task for ensuring stable industrial growth, and has taken a series of measures in conjunction with relevant departments and localities to make every effort to ensure the stable and smooth industrial chain and supply chain.

First, we are focusing on key areas and sparing no effort to get through the blocking points. We first established a daily scheduling mechanism for key provinces and cities to coordinate and solve problems such as obstruction of logistics and transportation and poor connection between upstream and downstream. We dispatched front-line working groups to strengthen cross-regional coordination, and perform closed-loop management and stabilize production under the conditions of ensuring epidemic prevention and control in key regions.

Second, we focus on key enterprises to establish and implement a "white list" system. Focusing on key fields such as medical and epidemic prevention materials, necessities of life for residents, important materials for agricultural production, and key materials for strategic industries, we have released a "white list" of key enterprises to unblock key nodes in the industrial chain and supply chain. At the same time, we have guided more than 20,000 companies on the white list in various regions to achieve regional mutual recognition and promote the coordinated resumption of work and production.

Third, we are focusing on key industries and promoting the upstream and downstream to dock their services. We have built a coordination platform for key industrial chains and supply chains for automobiles, integrated circuits, medical supplies, etc., established a "red light" early warning mechanism for auto companies whose spare parts inventory can last less than three days, and established a "red, yellow and blue" early warning coordination mechanism for bulk raw material supply, etc.. We did these in order to solve the problems reported by enterprises one by one, such as raw material supply, employees returning to work, as well as logistics and transportation issues. Just as Mr. Tian introduced, the national industry and information system have coordinated and solved more than 54,000 problems and demands from enterprises in a timely manner, helping the upstream and downstream to resume work and production synchronously.

With the joint efforts of various regions and departments, the industrial chain and supply chain have become increasingly smooth, and the industrial economy has quickly reversed the downward trend and achieved growth recovery. At present, industrial enterprises above the designated size in the Yangtze River Delta and Pearl River Delta regions have resumed normal production, and the production capacity of key industrial chains such as automobiles and integrated circuits has also fully recovered. In the next step, the MIIT will thoroughly implement the decisions and arrangements of the CPC Central Committee and the State Council, efficiently coordinate epidemic prevention and control and industrial production, and further promote enterprises to stabilize the production and reach the target outputs. First, we will strengthen the monitoring of the operation of key regions, key industries, and key enterprises. Based on the whitelist enterprises in the key industrial chains and supply chains, we will pay close attention to ensuring the implementation of details of various service guarantees and promote key enterprises to stabilize the production and reach the target outputs, which will see a full recovery of production capacity. Second, we will guide the regions where the epidemic occurs to implement the COVID1-19 prevention and control measures in the production process, effectively implement the stable production plan and emergency plan, and ensure stable production under the conditions of epidemic prevention and control. After the impact and experiences in March and April, many enterprises and localities promptly formed their own emergency plans. We are also very confident that we can quickly achieve closed-loop management and stable production under any shock waves. Third, we will further improve the coordination platform of key industrial chains and supply chains and improve the "red, yellow, and blue" early warning coordination mechanism for the supply and demand of bulk commodities. We will strengthen the supply of automotive chips, promote inter-regional, upstream-and-downstream coordination and interaction, and ensure key industrial chains and supply chains are stable and smooth, such as automobiles and integrated circuits. Thank you! 

Southern Metropolis Daily:

Some micro-, small- and medium-sized enterprises (MSMEs) that COVID-19 has severely hit are facing greater difficulties in operation. What measures have you taken to support MSMEs in the year's first half, and what are the next steps? Thank you.

Tian Yulong:

Thank you for your question. As you said, MSMEs have always drawn public attention. They have been affected by the epidemic and the combination of various factors. The CPC Central Committee and the State Council have attached great importance to the issue and made a series of policies intensively. You may have seen them in the newspapers. These combined policies include tax incentives, improvement of the standard of subsidies given to businesses that reduce layoffs, solving financing problems, and reduction and exemption of property fees and rent. These measures have played a significant role in the relief and assistance of MSMEs. According to the latest data, as of June 25, China's tax refunds, as well as tax and fee cuts and deferrals, reached 2.58 trillion yuan, with the beneficiaries being MSMEs. The CPC Central Committee and the State Council have relieved the burden on MSMEs so they can tide over difficulties.

As a department responsible for providing comprehensive service for small- and medium-sized enterprises (SMEs), the MIIT and relevant departments have implemented the deployment of the CPC Central Committee and the State Council and taken multiple measures to help MSMEs overcome difficulties. Now we can see that these measures work well.

First, we have promoted introducing and implementing various policies that benefit enterprises. The State Council's leading group on developing SMEs has held several meetings to study relevant issues. "Several Measures to Help Micro-, Small- and Medium-Sized Enterprises Relieve Difficulties," which comprises 10 specific measures in four areas, was issued by the MIIT to solve the problems faced by MSMEs. At the same time, we have implemented the measures issued by the State Council to stabilize the economy and further strengthen the relief and support for MSMEs. All regions and departments have worked together to implement measures and policies so that MSMEs can get the benefits as soon as possible and have a sense of fulfillment. Meanwhile, we will work with relevant departments to carry out comprehensive inspections on implementing these policies and reduce the burden on enterprises, promote and guide local governments to increase the implementation of policies, benefit MSMEs, help them overcome difficulties, and develop as soon as possible.

Second, we have mobilized the forces of all parties to increase services for SMEs. The key to the implementation of the policy is to provide good service. We have launched two campaigns nationwide: one is "Service Month for SMEs," and the other is "Benefiting Enterprises Together." In collaboration with local authorities, we have made known these preferential policies to enterprises, industrial parks, and industrial clusters to ensure that MSMEs can have access to the policies, technologies, and management techniques so that their businesses can recover from a difficult situation as soon as possible. From January to June, various SME service agencies organized multiple activities such as policy publicity, coordination, and assistance. More than 20 million services have been delivered, showing our considerable efforts in this field. Businesses can feel the benefits and have a better sense of fulfillment.

Third, we have focused on improving the ability of SMEs. We should not only help them solve difficulties but also promote their long-term development. The development of SMEs is also vital in stabilizing employment and economic growth. We have established a system for cultivating SMEs of various types in phases, including innovative SMEs, specialized and sophisticated SMEs that produce new and unique products , and "little giants" (small enterprises in their early stage of development and focusing on high-end technologies). We have carried out a campaign, "Act Together," to promote the cooperation of large enterprises and SMEs in the upstream and downstream so that they can make progress together. MSMEs have accelerated technological transformation and digitalization to enhance their core competitiveness and technological innovation capabilities. Recently, together with the Ministry of Education and China National Intellectual Property Administration, the MIIT launched a campaign to promote cooperation between colleges and universities and MSMEs and sped up the commercialization and application of technological achievements made in colleges and universities. These efforts are of great significance, enabling SMEs to have more sources of innovation and receive more support.

Fourth, efforts have been intensified to get outstanding payments owed to SMEs cleared. We have focused on this work in recent years. By carrying out certain actions to prevent and resolve overdue payments, we have focused on resolving existing arrears while strictly preventing new arrears. We have constantly been improving long-term mechanisms and established relevant channels for handling complaints concerning outstanding payments in all provinces to ensure that SMEs have convenient access to make a complaint and get timely responses. We have improved the mechanism of complaint acceptance and transfer, follow-up, and supervision and protected MSMEs' legitimate rights and interests.

Next, we will scale our efforts in the above four areas and work with relevant departments to implement policies and measures, mobilize resources and strengths from all parties, and strengthen publicity and services. We will pay close attention to the development of SMEs and make policy reserves. We will continuously improve the service system and improve the service level. We will combine aiding and cultivating SMEs to encourage them to innovate, transform, upgrade, improve quality and efficiency, and grow stronger. We will strengthen the protection of SMEs' rights and interests so that they can overcome the current difficulties as soon as possible and achieve stable and healthy development. This is the top priority of our current and future work, and we hope to receive strong support from all walks of life. Thank you.

Xing Huina:

If you don't have any more questions, that's all for today's press conference. Thank you to the three speakers and friends from the media. Goodbye, everyone.

Translated and edited by Zhang Liying, Chen Xia, Zhang Tingting, Liu Qiang, Zhang Rui, Liu Sitong, Wang Yiming, Li Huiru, Wang Qian, Xu Xiaoxuan, Yang Xi, Huang Shan, Zhang Lulu, Lin Liyao, David Ball, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.