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Speakers:

Mr. Jin Zhuanglong, minister of industry and information technology 

Mr. Xin Guobin, vice minister of industry and information technology 

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

Chairperson:

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

Date:

March 1, 2023

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to the press conference held by the State Council Information Office (SCIO). This is the sixth press conference in the series "Embarking on the New journey — A Government Perspective." We have invited Mr. Jin Zhuanglong, minister of industry and information technology, to brief you on promoting new industrialization to bolster the real economy, and to take your questions. Also present at today's press conference are Mr. Xin Guobin, vice minister of industry and information technology, and Mr. Tian Yulong, chief engineer and spokesperson of the MIIT.

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

Jin Zhuanglong:

Friends from the media, ladies and gentlemen, good afternoon. Thank you for your long-term interest in China's industrial development as well as your care and support for the MIIT. Today, my two colleagues and I will talk with you about implementing the major decisions and arrangements of the 20th CPC National Congress and promoting new industrialization to bolster the real economy.

The report to the 20th CPC National Congress draws a grand blueprint for comprehensively building a great modern socialist country and advancing the rejuvenation of the Chinese nation on all fronts through a Chinese path to modernization. It states that China will basically achieve new industrialization by 2035. It also underlines that in pursuing economic growth, we must continue to focus on the real economy and that we will advance new industrialization and move faster to boost China's strength in manufacturing and cyberspace . Made by the CPC Central Committee with Comrade Xi Jinping at its core based on the overall development of the Party and state, the major strategic arrangement of advancing new industrialization is of great and profound significance. In my opinion, advancing new industrialization is a natural requirement for realizing a Chinese path to modernization, a fundamental support for comprehensively building a great modern socialist country, an urgent need to build up competitive edges as a major country, and a strategic choice to realize high-quality economic growth. 

Since the 18th CPC National Congress, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China's new industrialization has been developing at a markedly faster pace. I will brief you on this from five aspects:

First, the industrial system has been further improved. China boasts 41 major industrial categories, 207 intermediate industrial categories and 666 small industrial categories, being the only country in the world that has all the industrial categories in the United Nation's International Standard Industrial Classification of All Economic Activities . 

Second, the industrial scale has been further expanded. In 2022, the total value-added of industry exceeded the 40 trillion yuan mark, accounting for 33.2% of GDP. Therefore, we often say that industry serves as a ballast of macroeconomic performance. Specifically, the value-added of manufacturing made up 27.7% of GDP and the manufacturing scale has topped the world for 13 consecutive years. A total of 65 Chinese manufacturing enterprises made it onto the 2022 Fortune Global 500 list, and China now has more than 70,000 small- and medium-sized specialized and sophisticated enterprises that produce new and unique products. 

Third, the industrial structure has been constantly optimized. The high-tech manufacturing industry and equipment manufacturing industry accounted for 15.5% and 31.8% of the value-added of industries above designated size, respectively. The output of new-energy vehicles and photovoltaic power has topped the world for many years in a row. The transformation and upgrading of traditional industries has been accelerated, with marked progress being made in their digital and green transformations. A total of 45 national advanced manufacturing clusters have been fostered. 

Fourth, the digital economy has been growing at a faster pace. China's mobile communications have made leapfrog developments by following other countries in 2G, making breakthroughs in 3G, keeping pace with the rest of the world in 4G, and securing a leading position in 5G. Currently, China has built the world's largest mobile communications network with advanced technology. As of the end of 2022, China had built a total of 2.31 million 5G base stations. Thanks to this, all counties in China can now access 5G services and all villages can access broadband internet. Data centers in use nationwide now have more than 6.5 million standard racks, with the total computing power ranking second in the world. The numerical control rate of key processes and the penetration rate of R&D and design tools for digital transformation in key industrial enterprises reached 58.6% and 77%, respectively. In 2022, the income of the software industry exceeded 10 trillion yuan, and the industrial internet was applied in 45 major categories of the national economy, with the number of influential industrial internet platforms reaching 240.  

Fifth, a series of major advances has been secured in key areas. One achievement after another has been made in such fields as manned spaceflight, lunar and Martian exploration, and deep sea and deep earth probes . The first C919 large passenger airliner was delivered, the first self-developed F-class 50 megawatts heavy-duty gas turbine was ignited, and nuclear power units using Hualong One technology were connected to the grid and started operation.  

Currently, new industrialization also faces new situations in its development: a new round of scientific and technological revolution and industrial transformation has advanced by leaps and bounds, the global industrial structure and layout have undergone profound changes, and China is at a crucial juncture of moving from a big manufacturer to a strong manufacturer. We will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and thoroughly implement the guiding principles of the 20th CPC National Congress. We will act on the general principle of pursuing progress while ensuring stability, apply the new development philosophy, create a new development pattern, and promote high-quality development. We will coordinate development and security, make solid progress in advancing new industrialization, move faster to boost China's strength in manufacturing and cyberspace, and continuously lay a solid material and technological foundation for comprehensively building a great modern socialist country. This work will focus on six aspects:

First, we will promote the stable growth of the industrial economy. We will earnestly implement the policy package aimed at stabilizing the economy and the related follow-up measures. Our primary focus should be on stabilizing the growth of key industries, which contributes significantly to GDP. Meanwhile, we will also give better play to key areas and better leverage the anchor role of industries in stabilizing the macroeconomy.

Second, we will accelerate the modernization of the industrial system mainly through four aspects. Specifically, we need to transform and upgrade traditional industries because they account for a significant proportion of all industrial sectors. In addition, we need to cement the leading position of several competitive industries in China, develop emerging industries, and make forward-looking plans for future-oriented industries.

Third, we will enhance the resilience and security capacity of industrial and supply chains. We will work to shore up weak links, leverage advantages, and strengthen the development foundation. We will see that key industrial and supply chains are more self-sufficient and that their risks are better controlled while promoting the development of all industrial chains.

Fourth, we will improve the mechanism for industrial sci-tech innovation. The relations among science and technologies, industries, finance and innovation have become a common concern, and we need to strengthen collaboration in these aspects. We will promote breakthroughs in core technologies in key fields and comprehensively stimulate the drive for innovation and entrepreneurship. We will also build several innovation centers for the manufacturing sector, develop several advanced manufacturing clusters, and facilitate the in-depth integration among links concerning innovation, industrial development, capital and talents.

Fifth, we will focus on promoting high-end, intelligent, and green manufacturing. We will strengthen brand building as well as carry out smart manufacturing projects. We will also expedite the construction and application of new types of information infrastructure and promote the green and low-carbon development of industries proactively and steadily.

Sixth, we will comprehensively improve the competitiveness of enterprises. Enterprises are the main body of the market. We will support leading enterprises in improving development quality, nurture more specialized and sophisticated small- and medium-sized enterprises (SMEs) that produce new and unique products, and create a fine ecosystem where businesses of all sizes can pursue development through collaboration.

That concludes my brief introduction. Next, my colleagues and I will take your questions. Thank you.

Shou Xiaoli:

Thank you, Mr. Jin. Now the floor is open for questions. Please identify the media organization you work for before raising your questions.

China Daily:

The report to the 20th CPC National Congress proposed modernizing the industrial system, and the central economic work conference made further arrangements. Could you please elaborate on MIIT's plans and priorities for modernizing the industrial system? Thank you.

Jin Zhuanglong:

Thank you for your questions. The 20th CPC National Congress made comprehensive arrangements to modernize the industrial system, and General Secretary Xi Jinping also made important remarks on the issue at the Central Economic Work Conference held last December.

As we know, the manufacturing industry is the foundation of the real economy. It is also the lifeblood of the national economy and a crucial sector in constructing a modern industrial system. China has developed a large-scale and complete manufacturing system with strong competitiveness. We will stay committed to developing the real economy, especially the manufacturing industry, consolidate the advantage of our complete industrial system, and ensure that its share of the industrial sector remains generally stable. We will expedite efforts to modernize the industrial system by leveraging advantages, shoring weak links, and strengthening the development foundation. This endeavor will mainly focus on the following four aspects.

First, we will transform and upgrade traditional industries. As traditional industries are the foundation of a modernized industrial system and account for over 80% of China's industrial sector, we will ramp up efforts to support enterprises in accelerating technological transformation and upgrading equipment. We will also promote the adoption of advanced and applicable technologies, modernize techniques, and elevate product quality to meet higher-end standards. We will carry out a campaign In the manufacturing industry to increase the variety of products, improve quality, and build brands, in a bid to raise product quality and brand benefits. We will implement smart manufacturing projects, speed up the growth of service-oriented manufacturing, and strive to bolster producer services. We will implement the plan to achieve peak carbon emissions in the industrial sector, comprehensively promote green manufacturing, and encourage green and low-carbon development. By promoting market-oriented and rule-of-law methods, we aim to encourage the merging and restructuring of major sectors and enhance industrial concentration. 

Second, we will consolidate and expand the development of competitive industries. China has developed distinctive competitiveness in sectors such as high-speed rail, ships, electronic power facilities, construction machinery and communication equipment. China's production of major products like personal computers, cellphones, home appliances, and solar panels also accounts for over half of the world's total. We will coordinate resources and ramp up efforts to implement two projects. The first project involves upgrading the foundational industrial infrastructure, which requires consistent and dedicated efforts. The second involves achieving breakthroughs in key technologies and equipment. We will consolidate and enhance the strength of all industrial links and develop several brands for "Made in China." We will also leverage the major role of enterprises, support leading enterprises in improving development quality, and nurture several world-class companies. In addition, we will take special action to develop advanced manufacturing clusters, build world-class advanced manufacturing clusters focusing on key sectors such as construction machinery, rail transit, optoelectronic information, energy and electric power facilities, and textile and apparel products.

Third, we will foster emerging industries. Emerging industries are the new pillars and fields that will lead development in the future. We will keep developing and expanding new application scenarios in key sectors such as 5G, artificial intelligence (AI), biological manufacturing, the industrial internet, intelligent connected vehicles, and green and low-carbon development. We will build more national industrial innovation centers in emerging industries. We will also implement the "Robot + Application Action Plan" and promote large-scale and intensive development in the Internet of Things (IoT) sector.

Fourth, we will proactively plan and create a layout for industries of the future. Seizing opportunities created by the latest round of technological revolution and industrial transformation, we will harness the industries of the future to become a leading force for development. We will study and formulate an action plan to speed up development on frontiers such as humanoid robots, the metaverse, and quantum science and technology and comprehensively advance the development of 6G technology. We will also encourage local authorities to experiment in this regard and make forward-looking arrangements. 

In conclusion, we must promote domestic and international circulation to build a modern industrial system, with the former as the mainstay. Moreover, we need to strengthen global cooperation, deepen reform and opening-up, create a favorable business environment, and better serve advanced manufacturing enterprises, whether Chinese or foreign. Thank you. 

Nanfang Daily:

2022 witnessed explosive growth in China's new energy vehicle (NEV) industry, with production and sales exceeding 6.5 million. Will the momentum be sustained this year? What measures will the MIIT take to advance the industry's sound development? Thank you.

Jin Zhuanglong:

Thank you for your question. It is indeed a topic of public interest. I want to pass it on to Mr. Xin Guobin, who oversees this sector. 

Xin Guobin:

Thank you for your attention, care, and support in developing the NEV industry. Under the strong leadership of the CPC Central Committee and the State Council, relevant parties made determined efforts to seize a remarkable performance of the NEV industry last year. The sector's annual production reached 7.05 million units and sales hit 6.88 million, increasing 96.9% and 93.4%, respectively, year on year. China's production and sales volume of NEVs has topped the world for eight consecutive years. 

Since China issued the "Energy Saving and New Energy Vehicle Industry Development Plan" in 2012, its compound annual growth rate has reached 87%. A total of 15.96 million NEVs have hit the road, making China a leading force in the electrification of the global automobile industry. The public is closely watching the trend of the industry, a sector blessed with a possible take-off. Attaching great importance to its development, the MIIT organized a series of surveys and seminars to solicit opinions from enterprises, research institutes, and industry associations. It turned out that NEV producers were very confident about the industry's development this year. All sides believe that the fundamentals sustaining China's steady and long-term economic and social growth remain unchanged. Their enthusiasm for implementing the spirit of the 20th CPC National Congress and forging ahead with a pioneering and enterprising spirit runs unprecedentedly high. It was also found that green development had taken root, and customer satisfaction with NEVS has steadily improved.

On the basis of a comprehensive assessment of the above factors, as well as production and sales in the past two months, we believe that the sound momentum of the NEV industry will be sustained and stable growth is in sight. We will improve our work in the following five aspects to make it happen.

First, we will strengthen overall planning and upgrade the inter-agency mechanism for developing the NEV industry. We aim to ensure progress in electrification, internet connection and smart technology. Continuous efforts will be exerted to achieve technological breakthroughs, advance applications and reinforce infrastructure. All these efforts will be aimed at building world-class innovative Chinese brands with firmly integrated capacities.

Second, we will support innovation. We will launch major initiatives to enable leading enterprises to fully play their leading role and strive for breakthroughs in the technologies of new system batteries, automotive chips, and vehicle operating systems, and accelerate their industrial application. We will start permitting intelligent connected vehicles to enter the market and pilot their operation. We will also speed up the application of 5G vehicle-road networking technology to realize the integrated development of electrification and intelligent connection.

Third, we will promote popularization. We have jointly issued a notice with relevant departments to pilot the comprehensive electrification of public vehicles. We plan to enhance the electrification level of official vehicles, taxis, mail and sanitation trucks. We will work with other departments to roll out purchase tax reduction and exemption policies as soon as possible, amend the dual-credit scheme, and stabilize market expectations. 

Fourth, we will improve service capabilities. We will bolster the development of domestic resources, stabilize global cooperation, and ensure supply and price stability for critical raw materials. We will also improve the recycling system and tackle critical technologies concerning intelligent disassembly to get power batteries better recycled. 

Fifth, we will advance open development. We will continue implementing open policies for the highly internationalized automobile industry. Giving full play to bilateral and multilateral cooperation mechanisms, we will support exchanges between enterprises, research institutes and industrial organizations and encourage their cooperation in trade, investment, technology research and development, and a standard establishment for common development. That's all. Thank you.

Jin Zhuanglong:

People interested in the new energy vehicle industry may have wondered about its production and sales volume this year, especially after a bumper year in 2022. Just now, Mr. Xin predicted sustainable sound momentum, painting a promising picture for the industry. Thank you. 

CCTV:

Great importance has been attached to the capacity building of industrial foundation in recent years, and we have developed a number of major equipment of vital importance to our country. The report to the 20th CPC National Congress proposed carrying out industrial foundation reengineering projects and research projects on major technologies and equipment . What specific plans does the MIIT have to accelerate implementing the two projects? Thank you. 

Jin Zhuanglong:

Thank you for your question. Let us invite Mr. Tian, in charge of the major equipment manufacturing industry, to answer this question.

Tian Yulong:

Thank you for your question. Mr. Jin talked about advancing the implementation of the two projects for building a modern industrial system just now. I will further explain. 

The industrial foundation is the basis for developing the manufacturing industry. Major technologies and equipment are a strong driving force in the upgrading of the manufacturing industry. The quality of the industrial foundation and major technologies and equipment reflects comprehensive industrial power and the level of industrial development. In the development of the manufacturing industry, major technologies and equipment play a guiding role in upgrading, while the industrial foundation serves as fundamental support. Therefore, we should bolster both major technologies and equipment and the industrial foundation in a bid to enhance and improve the manufacturing industry. We will give full play to the advantages of the new system for mobilizing resources nationwide and a supersize market. To build a modern industrial system, we will build powerful industrial and supply chains, coordinate industrial foundation reengineering projects and research projects on major technologies and equipment, and jointly establish a system for industrial scientific and technological innovation so as to improve the manufacturing industry's core competitiveness.

In terms of industrial foundation reengineering projects, first, we will focus on advancing the industrial foundation and develop a range of core and basic spare parts, basic components, basic materials, key and basic software, as well as advanced basic technologies. Through methods such as the open competition mechanism for selecting the best candidates to lead key research projects, we will make breakthroughs in a number of key and generic technologies as well as basic products, which strongly support the innovation and upgrading of our industrial system. Second, we will establish a batch of generic technological centers for industrial foundations. Relying on leading enterprises and scientific research institutions that have transformed into enterprises, we will give long-term and stable support for generic technological research, product innovation, and application promotion. Third, we will leverage the guiding role of industrial policies. Giving full play to the national manufacturing industry transformation and upgrading fund and the small- and medium-sized enterprises development fund, we will encourage the investment of social capital and funds in the market. In doing so, we will support the reengineering of the industrial foundation and nurture a batch of specialized and sophisticated enterprises that produce new and unique products. 

In terms of research projects on major technologies and equipment, we will focus on developing high-end, intelligent, and green major technologies and equipment. After several decades of development, China's major technologies and equipment have formed a complete system and gained strong industrial competitiveness. Going forward, we will meet our country's needs in major strategic products and speed up developing major technologies and equipment to be systemic, high-end, intelligent, and green. Especially in the fields of large aircraft, aero-engines, gas turbines, electric power equipment, ships and marine engineering equipment, machine tools, high-end medical equipment, and modern agricultural equipment, we will strive to make breakthroughs in a number of innovative and landmark equipment. China has such an industrial foundation and innovative ability. 

Second, we will intensify the demonstration and application of industries and industrial applications. Leveraging the driving force of major programs, major equipment, and complete machine systems, we will demonstrate and apply major equipment and major basic products and industrialize them to build systems for industrial and supply chains. We will build a range of industrialized bases for major equipment as well as industrial clusters based on major advantageous areas and industrial cluster areas. 

Third, we will further optimize a policy support system. Currently, we have established a working mechanism for coordinated advancement in major technologies and equipment with relevant departments, made full use of fiscal and financial support and guidance, and improved mechanisms on insurance compensation, offering incentives and ensuring that those who have fulfilled their duties can benefit. We will promote the demonstration and application of newly-developed equipment , materials, and software. Meanwhile, we will step up training major equipment personnel; deepen cooperation involving industries, universities, and research institutes; and intensify building a new type of engineering science. We will encourage enterprises to carry forward the spirit of craftsmanship and cultivate more skilled and talented people of a high caliber. In doing so, we will continue to explore new ways to advance the development of new industrialization and accelerate the advancement of the two main projects. Thank you.

Jin Zhuanglong:

Figuratively speaking, on the one hand, we should "touch the sky," and one the other hand, we should "stand on the ground." "Touch the sky" means we should develop major technical equipment that applies cutting-edge technologies. "Stand on the ground" means we should bolster the industrial base. Therefore, to help the manufacturing industry go big, we should "touch the sky" and "stand on the ground" at the same time. Thank you.

China Youth Daily:

The development of small- and medium-sized enterprises (SMEs) has always been a great concern. Especially over the past few years, specialized enterprises that use sophisticated technologies to produce new and unique products have gained great popularity in the market. What is the current development of those enterprises? What creative measures will be taken to support their development? Thank you. 

Jin Zhuanglong:

Thank you for your questions. I would first like to clarify that China has attached great importance to SMEs. The office of the leading group for promoting the development of SMEs under the State Council has been established in our ministry. We have also set up a department invested with the duty to promote the development of SMEs. Therefore, I will answer your questions.

As we all know, SMEs are closely connected with everybody life. As most SMEs are private enterprises, they have been a vital force in improving people's livelihoods and promote the development of the economy. The following industry-specific statistics will give a full picture of the key role played by SMEs in our country: SMEs contribute 50% of the total tax revenue, over 60% of the total GDP, over 70% of the technological innovation, over 80% of the urban and rural employment, and over 90% of the total number of enterprises. We have thoroughly implemented guiding principles of important speeches made by General Secretary Xi Jinping on promoting the development of SMEs and carried out decisions and deployments made by the CPC Central Committee. We have also collaborated with relevant departments and local governments to launch a slew of preferential policies under the leadership of the office of the leading group for promoting the development of SMEs under the State Council.

It's known to all that, the pandemic has posed numerous challenges to many SMEs last year. The country has rolled out various kinds of measures to ease their burdens. In 2022, China's tax refunds, tax and fee cuts, and tax and fee deferrals for small and micro-market entities topped 1.7 trillion yuan. China has also carried out a series of campaigns and fostered 274 national demonstration platforms of public services, especially for SMEs. China has launched a special campaign on the outstanding payments owed to SMEs, helping them maintain steady growth, optimize structures, and strengthen capacities to ensure their sound and robust development. In 2022, an average of 23,800 enterprises were established per day, the number of SMEs exceeded 520 million, and the operating revenue of small- and medium-sized industrial enterprises above designated size exceeded 80 trillion yuan. Notably, a group of specialized and sophisticated enterprises has become highlights in the development of SMEs. The National Conference on Development of Specialized and Sophisticated SMEs was successfully convened last year. General Secretary Xi Jinping attached great significance to the event and sent a congratulatory letter. China has fostered over 70,000 specialized and sophisticated SMEs, with 8,997 classified as "little giants." As for the capital market, the number of specialized and sophisticated SMEs accounted for 59% of the total number of newly listed enterprises last year. An accumulated number of over 1,300 specialized and sophisticated SMEs were listed on A-share, accounting for 27% of the total number of firms listed on the A-share market. Those enterprises have been long-established players in industrial sectors that play a crucial role. They demonstrate their professionalization, refinement, specialization, and innovation. As we all talk about "specialized and sophisticated SMEs," what does this term mean? To sum up, here are four key characteristics: professionalization, refinement, specialization, and innovation.

For the next step, we will deepen our understanding of the guiding principles of the important instructions made by General Secretary Xi Jinping on promoting the development of SMEs. We will implement decisions and deployments made at the 20th CPC National Congress and work unswervingly both to consolidate and develop the public sector and to encourage, support, and guide the development of the non-public sector. We will place equal emphasis on management and services. We should also provide support and ensure development simultaneously. We will launch more preferential policies to help enterprises, provide more services to help enterprises, optimize the business environment to revitalize enterprises and make innovations to underpin enterprises, making every effort to promote the high-quality development of SMEs. We will lay more focus on the following five aspects.

First, we will enhance the environment for development. Enhancing the environment for development can boil down to a law, a regulation, an opinion, and a plan. The law means we need to fully implement the Law of the People's Republic of China on the Promotion of Small and Medium-sized Enterprises . The regulation refers to the implementation of the Regulation on Ensuring Payments to Small and Medium-sized Enterprises to protect the legitimate rights and interests of SMEs. The opinion means we need to thoroughly act upon the Guiding Opinions on the Promotion of the Healthy Development of Small and Medium-sized Enterprises . The plan means we need to implement the Plan for Promoting the Development of SMEs during the 14th Five-Year Plan Period (2021-25), ensure various preferential policies for enterprises deliver, and ease difficulties for SMEs.

Second, we will increase cultivation efforts. Development is still what really matters to all. We will strengthen the implementation of the gradient cultivation project for competitive enterprises and strive to have more than 80,000 specialized and sophisticated SMEs that produce new and unique products nationwide this year. We will strengthen policy guidance and resources coordination to cultivate about 100 distinctive industrial SME clusters. We will give play to the leading role of large enterprises and support enterprises of all sizes in pursuing development through closer collaboration. This year, we will continue to hold the National Conference on Development of Specialized and Sophisticated SMEs to build a platform for communication and cooperation between SMEs. All friends from the media are welcome to come.

Third, we will improve the service system. Services are a very important part, and the government needs to do more to serve SMEs. There are several aspects in this regard: first, we plan to issue opinions on further improving the service system for SMEs this year; second, we will further improve the public service systems for SMEs at the national, provincial, municipal, and county levels; third, we will continue to carry out the SMEs Service Month activities nationwide to give full play to the role of public service agencies for SMEs, public services demonstration platforms for SMEs, and business startups and innovation demonstration hubs for micro and small enterprises so that more high-quality services can be provided to SMEs directly.

Fourth, we will promote industry-finance cooperation. Financial institutions now attach great importance to financial support for MSMEs. We will guide financial institutions to consistently increase their financing support for MSMEs. We will leverage the role of the capital market to support specialized and sophisticated enterprises in accelerating their listings. We will give play to the guiding role of the National Fund for SMEs Development to stimulate more investment from nongovernmental capital.

We will further improve the overseas service system for SMEs, ensure the success of the SMEs Expo, and build an international cooperation platform to help SMEs make good use of global resources and achieve win-win cooperation. Thank you.

Science and Technology Daily:

The 20th CPC National Congress made a strategic plan for moving faster to boost China's strength in cyberspace, emphasizing the building of a modern infrastructure system. What considerations does the MIIT have in the acceleration of the construction of the next-generation information infrastructure such as 5G, gigabit fiber optic networks, and mobile IoT? Thank you.

Tian Yulong:

Thank you for your question. The Party Central Committee and the State Council have always attached great importance to this issue and have also made strategic arrangements on the construction of new types of infrastructure. With the joint effort of various departments and localities, the construction of new types of infrastructure, such as 5G, gigabit fiber optic networks, and mobile IoT, as you mentioned, has been gaining steam and achieved remarkable results.

In terms of building 5G networks, we have established the world's largest and leading 5G networks. We have more than 2.31 million 5G base stations. The 5G networks cover all prefecture-level cities and all county seats across China. With the continuous improvement of applications and facilities, the supply capacity of 5G networks has also been continuously enhanced, playing a leading role in building a complete industrial chain which covers systems, chips, and terminals. During the 14th Five-Year Plan period, we will continue to increase the depth and breadth of 5G network coverage, further deepen joint construction and sharing of networks, and vigorously promote the integration of 5G technology and its product applications into all walks of life in our economy and society. Moreover, it is necessary to promote the deep integration of "5G plus Industrial Internet" into the manufacturing industry and expand it to all links of production in order to improve the overall level of digitalization, networking, and intelligence in the manufacturing sector.

Regarding the development of 1000M fiber optic networks, we have realized 1000M network coverage in all cities, broadband connections in all villages, and 5G coverage in all counties. The 1000M fiber optic networks already have the capacity to cover over 500 million households, a world-leading figure. The project to channel more computing resources from China's eastern areas to its less developed yet resource-rich western regions is in full swing, gradually building a computing power infrastructure application system that will enable the less developed regions to handle and store data transmitted from the economically advanced areas.

The total number of standard data center racks in service in China has exceeded 6.5 million, and servers have surpassed 20 million, ranking second in the world in terms of total computing power. In the future, we will launch a "Light Chasing Action" of 1000M fiber optic networks to boost the collaborative innovation of cross-industry, cross-enterprise, and cross-regional networks and encourage digital, internet-based and intelligent transformation of traditional industries. We will strive to achieve the coordinated and balanced development of information and communication networks in small and medium-sized cities and remote rural areas, promote the infrastructure construction of broadband access services in border regions and urban cloud networks in small and medium-sized cities, and thereby allow modern information technology to benefit all our people. At the same time, we will step up efforts to encourage the empowerment of computing infrastructure and build a network structure and computing power supply system that integrates cloud and networks and converges computing and networks.

Regarding the mobile Internet of Things (IoT), China has built the largest mobile IoT in the world, with 1.845 billion connections, accounting for more than 70% of the global total. China has become the first major economy in the world with more connected things than people. The mobile IoT has been widely applied to digital city construction, smart manufacturing and transportation, and mobile payments. We all have a deep understanding of this. It has facilitated our lives and changed our way of life.

In the future, we will leverage the enabling role of network, take the application-driven, market-oriented, and policy-motivated approach and further promote the full development of mobile IoT. We will continue to consolidate the leading edge of our network capabilities and build IoT connectivity that supports the integration of fixed and mobile IoT and the combination of broadband and narrowband IoT. We will continue to expand IoT application scenarios into various industries and fields and further deepen the integration of the IoT with various industries so as to support the construction of Digital China and smart cities and make our information infrastructure more beneficial to the people and social development. Thank you.

Jin Zhuanglong:

Let me give an update on 6G development, which may be of interest to you. We have constantly reviewed the experience of 5G development and encouraged the industry to set up an IMT-2030 (6G) Promotion Group, which is expected to offer a platform for industry, research institutes and telecom operators to promote the integrated development of production, teaching, research and application, and boost international cooperation exchanges and technology development. Thank you.

People.com.cn:

We noted that since last year, the MIIT and other relevant departments have rolled out implementation plans for carbon dioxide peaking in the industrial sector and related key industries like non-ferrous metals and building materials. What is the focus of this year's relevant work? And what steps will be taken next to promote the green transformation of manufacturing? Thank you.

Jin Zhuanglong:

Thank you for your question, which has attracted much attention both at home and abroad. I would like to invite Mr. Xin to answer it.

Xin Guobin:

Let me answer your question. Green and low-carbon development is the big trend in global sustainable development. To accelerate green and low-carbon industrial development is an important measure in boosting a new type of industrialization for China. Since last year, the MIIT has fully implemented Xi Jinping Thought on Ecological Civilization and the decisions and plans of the CPC Central Committee and worked with related departments in rolling out the implementation plans of carbon dioxide peaking in the industrial sector and the key industries of steel, non-ferrous metals, petrochemicals, and building materials. This has helped preliminarily establish a policy framework system for promoting green industrial development. This year, the MIIT's efforts will focus on implementing these plans one by one. We will work hard in the following four aspects:

First, we will promote green manufacturing. We will research, formulate, and issue guidelines for accelerating green development in the manufacturing sector, provide specific guidance for different categories, and implement targeted policies for different industries. We will establish a dynamically upgraded green technology catalog and project library, accelerate the popularization and application of advanced technologies, and boost green upgrading and reconstruction in industries such as iron and steel, building materials, light industry, and textiles. The work in this area is crucial, as Mr. Jin mentioned earlier when answering the first question, traditional industries lay the foundation for our modern industrial system. Those key sectors are of great significance to promoting green and low-carbon development across the whole industry. We will also improve a graded cultivation mechanism; fully pursue green designs for industrial products; foster a batch of green factories, industrial parks, and supply chains; further develop green manufacturing service providers; and intensify efforts to revise relevant standards and regulations.

Second, we will launch a special campaign for industrial energy conservation and carbon reduction. We will deepen energy-saving supervision and diagnostic services. Our target for this year is to complete energy-saving supervisions for 3,000 industrial enterprises and energy-saving diagnoses for more than 1,000 specialized and sophisticated enterprises that produce new and unique products. We will promote high-quality development of the electric arc furnace steel-making process to drive the electrification of the industrial processes. We will establish public service platforms for reaching peak CO2 emissions and carbon neutrality goals; launch pilot projects, including industrial green microgrids and digital carbon-managing systems; and further create typical application scenarios to accelerate green, digitalized, and coordinated transformation. Meanwhile, we will also strengthen benchmarking for energy efficiency and intensify technological reconstruction in key industries to save energy and reduce carbon emissions.

Third, we will improve the quality and efficiency of comprehensive resource utilization. We will further enhance battery recycling and utilization systems for new energy vehicles, promote full traceability management, strengthen the standardized management of renewable resources such as scrap steel and waste paper, and cultivate over 100 key enterprises for comprehensive utilization. We aim to achieve a scrap iron and steel utilization of 265 million tons in 2023. We will work hard to make breakthroughs in utilizing complex and difficult-to-use industrial solid waste such as phosphogypsum and actively expand channels for its comprehensive utilization. Furthermore, we will also focus on steel, petrochemical, chemical, and other key water-intensive industries to carry out pilot projects for wastewater recycling.

Fourth, we will focus on cultivating new drivers of green growth. We will further strengthen the new energy vehicle industry, innovate and develop green aircraft, and promote electric, green, and intelligent upgrading of inland vessels. We will comprehensively enhance the supply capabilities of photovoltaics and lithium batteries, accelerate the building of a standardized industrial system, and promote the innovation and application of intelligent photovoltaics in industrial, construction, transportation, and communication sectors. At the same time, we will also vigorously develop the hydrogen energy and environmental protection equipment industries, as well as research and industrialization of new bio-based materials. Through these efforts, we will further achieve our green development goals for this year. That concludes my answer. Thank you.

Voice of China, China Media Group: 

We've noted that digital technologies like AI and big data have blossomed over recent years, and more and more intelligent factories, automated workshops, and smart manufacturing scenarios have mushroomed from place to place. My question is, what measures will the MIIT take to accelerate the development of smart manufacturing? 

Xin Guobin:

Thank you for your attention to smart manufacturing. Since the 18th CPC National Congress, China's smart manufacturing has been applied on a larger scale and developed rapidly. The achievements regarding smart manufacturing have propped up the high-quality development of the industrial economy. By now, China has built over 2,100 high-level digitalized workshops and intelligent factories, of which 209 are demonstration and benchmark cases. We conducted an analysis of the before and after effects of intelligent upgrading on these 209 enterprises and found that through their transformation, the R&D cycle has been shortened by 20.7%, the production efficiency improved by 34.8%, the defective products rate reduced by 27.4%, and the carbon emissions decreased by 21.2%. We also made a preliminary analysis and summary and concluded that the product iteration speed and delivery capabilities of equipment manufacturing and other discrete manufacturing had been greatly improved, while the safety and green development of process industries such as steel smelting and petrochemicals had been significantly enhanced. Therefore, intelligent transformation is of great significance to enterprises.

Currently, the integration of a new generation of information technology and advanced manufacturing technology has become characteristic of the new round of industrial transformation, propelling profound changes in global industrial and value chains. Developing intelligent manufacturing has become a common choice for major industrial countries to improve core competitiveness. We will continue to focus on intelligent manufacturing; promote technological transformation, improvement, and upgrading; and reshape industrial modes and enterprise forms of manufacturing through intelligent development. These are also decisions and deployments made by the CPC Central Committee and the State Council. This year, we will conduct the work in three aspects, as follows:

First, we will promote application at multiple levels. Targeting key industries, we will develop a batch of world-class intelligent factories and smart supply chains. For small and medium-sized enterprises, we will promote targeted solutions like technology improvement, lean management, and process reengineering on a large scale. For key provinces and cities, we will establish a number of intelligent manufacturing pilot zones and explore the formation of development paths and models with regional characteristics.

Second, we will accelerate breakthroughs in the innovation of integrated technologies. We will strive to make breakthroughs in manufacturing technologies like complex design and advanced techniques, mobilize personnel in all sectors, and give full play to the primary role of enterprises to realize fundamental and strategic breakthroughs. At the same time, we will conduct the R&D and promotion of applicable technologies like AI and Digital Twin and acquire original and forward-looking achievements. We will also promote the digitization of industrial knowledge and develop a batch of basic industrial software and core technology packages.

Third, we will strengthen fundamental support capacities. We will study and formulate policies and measures to promote the digital development of equipment and support the realization of Digital China through the innovation of intelligent equipment. We will enhance the construction of digital infrastructure and accelerate large-scale deployment and application of 5G, the industrial internet, and other technologies. Mr. Jin and Mr. Tian have explained the arrangement and deployment of this work, so I will not elaborate more. Afterward, we will improve the standard system of intelligent manufacturing, deepen applications of fundamental standards, actively participate in international communication and cooperation, learn from each other, and jointly improve intelligent development in various fields. Thank you.

The Beijing News: 

In recent years, China's digital economy has prospered and achieved remarkable accomplishments. The report to the 20th CPC National Congress made important deployments on accelerating the development of the digital economy and further integrating it with the real economy. What measures will the MIIT take to promote integration? Thank you!

Jin Zhuanglong:

Thank you for your question. The digital economy is of great concern to all of us, and the concept of digital economy is comprehensive and covers a wide range of areas. The current new round of scientific and technological revolution and industrial transformation is booming. Integrating the digital and real economies profoundly transforms economic forms, manufacturing methods and business organization models. I believe the full integration of IT applications with industrialization is the key area of integrated development of the digital and real economies. China's industrial economy is large, and the scale of its digital economy ranks second in the world, with broad prospects for integrated development. We will focus on the strategic goals of building up strength in manufacturing, cyberspace and digital technologies in China, targeting the innovation, breakthrough, and extended application of digital technologies, so as to boost the integrated development of IT applications and industrialization. In summary, this involves three main aspects: network platforms, digital industries, and integrated development.

First, we will solidly promote the construction of network infrastructure. China has built the world's largest, technologically advanced network infrastructure and the gigabit network access covers all prefecture-level cities. This year, we will further implement the gigabit city construction action. Recently, we held a gigabit city summit forum to guide local governments and the business circle to accelerate the construction with increased investments to further extend the coverage of 5G and gigabit optical fiber networks. We will also research and develop a computing infrastructure development action plan and strengthen the construction of industrial internet infrastructure.

Second, we will accelerate the development of core industries of digital economy. In 2022, China's electronic information manufacturing industry achieved an operating income of 15.4 trillion yuan, with software related income reaching 10.8 trillion yuan, laying a solid industrial and technological foundation for the integrated development of IT applications and industrialization. We will accelerate the development of artificial intelligence, big data, blockchain, cloud computing, cyberspace security and other emerging digital industries. We will also guide and support enterprises to increase investment in research and development and upgrade industries such as communication equipment, core electronic components, and ultra-high-definition displays. We will promote the high-quality development of the integrated circuit and industrial software industries. We will build high-standard software colleges with unique features and establish reputable software industrial parks in China.

Third, we will vigorously advance the digital transformation of the manufacturing industry. We will formulate a digital transformation roadmap for key industries and cultivate such enterprises that serve as models for others to follow regarding digital transformation. We will implement an action plan to boost 5G development, deepen the integrated application of 5G technologies and the industrial internet, promote the application of industrial internet in industrial parks, and create factories thoroughly equipped with 5G technologies. We will implement a smart manufacturing partnership program and take action to promote standardization in the area so as to build world leading smart factories and smart supply chains and develop new models and new business forms, such as service-oriented manufacturing. That's all for my answer. Thank you!

Shou Xiaoli:

Thank you, Mr. Jin. Thank you to all the speakers and friends from the media. This is the end of today's press conference. Goodbye, everyone.

Translated and edited by Zhu Bochen, Li Huiru, Wang Qian, Xu Xiaoxuan, Ma Yujia, He Shan, Qin Qi, Liu Caiyi, Liu Sitong, Mi Xingang, Huang Shan, Lin Liyao, Zhang Rui, Duan Yaying, Wang Yanfang, Yan Bin, Liu Qiang, Liu Jianing, Zhou Jing, 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.