Read in Chinese
Speakers:
Mr. Zhao Zhiguo, chief engineer and spokesperson of the Ministry of Industry and Information Technology (MIIT) and director general of the Information and Communications Management Bureau of the MIIT
Ms. Tao Qing, director general of the Bureau of Operation Monitoring and Coordination of the 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:
April 20, 2023
Shou Xiaoli:
Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are joined by Mr. Zhao Zhiguo, chief engineer and spokesperson of the Ministry of Industry and Information Technology (MIIT). He will brief you on the development of industry and information technology in the first quarter of 2023, and take your questions. We're also joined by Ms. Tao Qing, director general of the Bureau of Operation Monitoring and Coordination of the MIIT.
Now, I'll give the floor to Mr. Zhao for a brief introduction.
Zhao Zhiguo:
Ladies and gentlemen, friends from the media, good afternoon. Thank you for your consistent interest in and support for the industry and information technology sector. Next, I'll brief you on the sector's development in the first quarter of this year.
Since the beginning of this year, in the face of a complex and fast-changing external environment and various difficulties, risks and challenges, the MIIT, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, has thoroughly implemented the guiding principles of the 20th CPC National Congress and earnestly put into practice the decisions and deployments made at the Central Economic Work Conference and the annual "two sessions." The MIIT has prioritized ensuring stable growth and proactively collaborated with all localities and government departments in implementing related policies to accelerate the resumption of work and production, enhance efforts to ease businesses' difficulties, and maintain stable performance of industrial sector. In general, the industry and information technology sector has started off stably this year, with a positive trend to follow.
First, the industrial sector has maintained stable operation, evidenced by three key factors. For starters, industrial production has rebounded steadily. In the first quarter of this year, the added value of China's industrial enterprises above the designated size rose by 3% year on year, a 0.3 percentage point increase from the fourth quarter of 2022, reversing the continuous downward trend in growth since last October. According to statistics from the China Association of Automobile Manufacturers (CAAM), the production and sales of automobiles in March increased by 15.3% and 9.7% year on year, respectively, and that of new energy vehicles (NEVs) in the same period surged by 44.8% and 34.8% year on year, respectively. The second aspect is that manufacturing investment kept growing steadily. In the first quarter of this year, manufacturing investment grew by 7% year on year, 1.9 percentage points higher than fixed-asset investment in the country, maintaining a comparatively fast growth rate despite the high comparison bases over the past two consecutive years. The third aspect is that the leading role of major industrial provinces has become more prominent. The industrial growth rate of major industrial provinces, including Hebei, Shandong and Jiangsu, is significantly higher than the national average. The industrial sectors of Guangdong, Zhejiang and other provinces have also seen an upturn since March.
Second, advanced manufacturing demonstrated a sound growth momentum. General Secretary Xi Jinping stressed that we must firmly pursue high-quality development as our primary task. Premier Li Qiang's first research trip outside Beijing also focused on the development of advanced manufacturing, which sent a clear message of China's resolve to vigorously develop the sector. We have made every effort to boost advanced manufacturing and ensure that manufacturing becomes higher-end, more intelligent and more eco-friendly. We have carried out industrial foundation reengineering projects and research projects on major technologies and equipment. Major progress has been made in some sectors. For example, the ARJ21 aircraft have transported over 6.55 million passengers and have recently been put into commercial operations overseas. The world's largest container vessel, with a capacity of 24,188 TEUs, has been deployed for service in China. The country also successfully developed its first homegrown extracorporeal membrane oxygenation (ECMO) device and granted approval for it. We also implemented projects for intelligent manufacturing and promoted the digital transformation of industry. The three major functional systems of the industrial internet, namely those concerning networks, platforms and security, have been established, and the scale of the core industry has surpassed 1.2 trillion yuan ($170 billion). We also expedited our efforts to guide the transformation of industry toward eco-friendly and low-carbon development. We accelerated efforts to develop emerging industries such as the NEV and photovoltaic sectors. In the first quarter of this year, fixed-asset investment in the high-tech manufacturing industry increased by 15.2% year on year, and the production of emerging products such as NEVs and solar cells surged by 22.5% and 53.2% year on year, respectively.
Third, the empowering role of the information and telecommunications sector has continued to grow. We have spared no effort to develop new types of infrastructure and ensure it effectively supports high-quality socioeconomic development. In the first quarter of this year, the business revenue of China's telecom industry increased by 7.7% year on year. We worked to promote the construction of the "dual gigabit" internet in a steady manner. Over 2.64 million 5G base stations have been built, and the number of gigabit internet users has exceeded the 100 million mark. We continued to promote the integration of internet applications into industrial sectors, with 5G technology fully applied in 52 major sectors of the national economy. We improved the capacity of applications and services and further enhanced the supply of mobile internet applications and services. We accelerated the promotion of demonstration cases for elderly-friendly and barrier-free internet applications across the country. We also coordinated development and security by rolling out policies that bolster the development of industries concerning data security, strengthening the protection of key information infrastructure, and ensuring the safe and stable operation of basic telecommunications networks.
Fourth, the environment for industrial development was further improved. We adhere to an approach characterized by an efficient market and a well-functioning government, aiming to create an ecosystem conducive to industrial development. We thoroughly implemented the development plan for the industrial and information technology sector during the 14th Five-Year Plan period, and organized efforts to formulate work plans for stabilizing growth in major sectors such as automobiles and electronics. Regarding the pressing difficulties and problems facing small- and medium-sized enterprises (SMEs), the MIIT worked with related government departments and rolled out a series of policy measures to help businesses stabilize growth, adjust their structures, and strengthen their capacities. The MIIT also launched the fifth round of work to develop "little giant" enterprises with high growth potential, advanced technology and strong market competitive edge. It also convened this year's working session for the State Council's inter-ministerial joint meeting on reducing business burdens. The MIIT made efforts to precisely align industries with financial resources, and the national platform in this regard has helped enterprises raise more than 500 billion yuan in total.
Of course, we need to be aware of the current difficulties and challenges facing the development of the industrial sector. However, the fundamentals underpinning the long-term robust growth of China's industrial sector remain unchanged, and we maintain our confidence in it. Looking forward, the MIIT will continue to follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and earnestly implement the decisions and deployments made by the CPC Central Committee and the State Council. The MIIT will act with firm confidence, push for innovation, stabilize the development of major sectors, and support the growth of leading enterprises and enterprises with high growth potential, advanced technology and strong market competitive edge. The MIIT will work to boost existing strengths, develop new advantages, and shore up weak links in a bid to ensure the sustained upturn of the industrial sector and accelerated growth of the information and telecom industry in the second quarter. This will lay a solid foundation for the accomplishment of the annual targets and tasks.
That concludes my introduction. Next, my colleague and I will take your questions.
Shou Xiaoli:
Thank you, Mr. Zhao. The floor is now open for questions. Please identify the media organization you work for before asking your questions.
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China Media Group:
Since the beginning of this year, the industrial economy has rebounded at a faster pace and the PMI has stayed in expansionary territory for three consecutive months. How would you evaluate the performance of the industrial economy at present? Moreover, what measures will be taken to promote the steady growth of the industrial economy? Thank you.
Zhao Zhiguo:
Thank you for your questions. In the first quarter, China's value added of industrial enterprises above the designated size grew by 3% year on year, up a 0.3 percentage point from the fourth quarter of 2022. Overall, it has stabilized and rallied. In terms of industries, the outputs of the general equipment, automobile, and chemical fiber industries have increased year on year after declining year on year in the previous two months. Meanwhile, the outputs of the non-ferrous metals, building materials, electrical machinery, and special equipment industries grew more rapidly over the last two months. In terms of regions, the production in the eastern and northeastern regions has continued to recover. Among the top 10 provinces regarding value added, six provinces posted higher growth than the national level in the first quarter. Guangdong and Zhejiang have demonstrated sound recovery momentum, with positive growth in the first quarter. In terms of key products, the production of crude steel, generator sets, and refrigerators increased by 6.1%, 7.5%, and 8.4% year on year, respectively. Moreover, plastic products, bags and suitcases, general-purpose machinery, and automobiles still have advantages in exporting, with a double-digit increase year on year.
Next, we will focus on the following work.
First, we will foster a sound development environment for industries. We will fully implement policies and measures to keep growth stable, formulate and implement work plans to ensure steady growth in key sectors and continue to provide stronger policy support. We will coordinate between the MIIT and governments at provincial levels and foster collaboration among departments solidly and meticulously. We will support major industrial provinces to serve as the strong pillar of the industrial economy. We will give full play to the principal role of enterprises and provide strong support for developing leading enterprises and specialized and sophisticated enterprises that produce new and unique products to foster synergy in maintaining the steady growth of the industrial economy.
Second, we will work to steadily increase both the volume and quality of exports. The momentum in the export of advantageous products will be consolidated. We will offer more support to foreign trade firms in the manufacturing sector and provide good services for key foreign-invested enterprises and projects in the manufacturing sector. We will cooperate with relevant departments to implement policies and measures to ensure steady growth in foreign trade and make efforts to stabilize the export of industrial products.
Third, we will promote the recovery of domestic demand at a faster pace. We will act to increase the variety, raise the quality, and build brands of consumer goods and raw materials. Campaigns will be launched to promote new energy vehicles, smart appliances, and green building materials in rural areas. We will foster the local specialty food industry. With all these efforts, we will promote consumption through high-quality supply. We will make extensive efforts to advance major projects in the industry and information sector set out in the 14th Five-Year Plan. The plan to guide technology transformation and upgrading of industrial enterprises will be implemented. We will guide financial institutions to increase the supply of medium- and long-term loans to the manufacturing industry and actively expand effective investment.
Fourth, we will continue to create a strong impetus for growth. We will accelerate the innovative development of strategic emerging industries such as 5G, artificial intelligence, biological manufacturing, and intelligent connected vehicles and make a big push to develop advanced manufacturing to create new engines of growth. We will promote the development of the digital economy to foster new growth drivers for the economy. We will fully and meticulously implement measures to support stable growth, structural adjustments and capacity enhancement in SMEs. We will continue to improve services for enterprises, boost their confidence, and nurture a batch of SMEs into specialized and sophisticated enterprises that produce new and unique products.
We believe that advancing key projects under the 14th Five-Year Plan, implementing the strategic plan for boosting domestic demand, and introducing policies and initiatives to keep foreign trade stable will provide strong support for the sustained recovery of the industrial economy. With the effective release of the vitality of market entities, the potential of consumer consumption, and the impetus for industrial upgrading, China's industrial economy in the second quarter will further improve and lay a sound foundation for fulfilling our tasks and goals for the year. Thank you.
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Yicai:
At the Central Economic Work Conference at the end of last year, it was proposed that China would work on boosting domestic demand. In the government work report delivered during the two sessions this year, it is emphasized again that we will take solid steps to implement the strategy of expanding domestic demand. What measures will the MIIT take to further promote automobile consumption and boost domestic demand? Thank you.
Tao Qing:
Thank you for your question. In accordance with the decisions and plans of the CPC Central Committee and the State Council, the MIIT has actively worked with relevant departments to analyze the development of the automobile industry and develop policies and measures to further promote automobile consumption. We have continued to unlock the consumption potential and create multiple application scenarios to advance the high-quality development of the automobile industry. In 2022, we worked with relevant departments to launch preferential policies such as reducing the purchase tax of eligible passenger vehicles, promoting spending on new energy vehicles in rural areas, and guiding local governments to adopt measures to promote consumption, including increasing the quota of vehicle license plates for cities that have restrictions on car purchases and offering subsidies for purchasing vehicles. By taking all these measures, we have advanced steady growth in China's automobile industry, with production volume and sales up 3.4% and 2.1%, respectively, significantly contributing to the recovery of the macroeconomy. Since the beginning of 2023, new energy vehicles still maintain relatively rapid growth despite the current sluggish automobile market. From January to March, China produced 1.65 million and sold 1.586 million new energy vehicles, with a year-on-year increase of 27.7% and 26.2%, respectively.
Next, acting upon the decisions and plans of the CPC Central Committee and the State Council, the MIIT will further unleash the potential of consumer demand, energize the consumer market, and stabilize spending on automobiles and other big-ticket items. We will work with relevant departments to introduce policies and initiatives to maintain stable automobile consumption and expand domestic demand and ensure the implementation of current policies and initiatives. We will improve the "double credits" management provision for corporate average fuel consumption and new-energy vehicles. We will also launch pilot programs in establishing pioneering zones for comprehensive electrification of vehicles in public areas in cities. At the same time, we will guide local governments to uphold the principle of fairness and justice when making pro-consumption policies, as well as safeguard the market order for fair competition to continue improving the overall competitiveness and development quality of China's automobile industry. Thank you!
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Zhonghongwang.com:
The high-quality development of the ICT industry has effectively generated vigor for the development of the digital economy. We have seen that the ICT industry achieved relatively rapid growth in the first quarter. What are the specific highlights and achievements? Thank you.
Zhao Zhiguo:
Thank you for your question. In the first quarter, we thoroughly implemented the decisions and plans of the CPC Central Committee and the State Council, adhered to the general principle of pursuing progress while ensuring stability, and pushed the high-quality development of the ICT industry to new heights.
First, the momentum is strong and steady progress has been made in the development of the industry. Emerging businesses have developed rapidly, with the revenue of businesses such as internet data centers, cloud computing, and the Internet of Things increasing by 24.5% year on year, driving the growth of telecommunications services revenue by 4.8 percentage points and gradually becoming a new growth driver for the ICT industry. Telecommunications services revenue grew steadily, with total revenue reaching 425.2 billion yuan in the first quarter, up 7.7% year on year. Furthermore, the total business volume of telecommunications services increased by 18% year on year. The overall performance of the ICT industry has demonstrated sound momentum.
Second, the foundation is more solid and cyber capacity continues to be enhanced. Network infrastructure has been improved. As of the end of March, more than 2.64 million 5G base stations have been built and over 17.93 million network ports can provide gigabit network services, meaning that "the gigabit optical network covers every city" and "every county can access 5G services." A supply system of computing power with gradient optimization has been primarily established. The total computing power has developed rapidly. China's total computing power scale now ranks second globally, with an annual growth rate of nearly 30%. The development of IPv6 has been advanced. IPv6 has developed from being usable to being able to provide good services. The data traffic of IPv6 surpassed IPv4 for the first time, accounting for over 50% of mobile network traffic, bringing in an era of the internet predominated by IPv6-based networks.
Third, the application is wider and access to high-speed businesses has been accelerated. The scale of connection has continued to increase. As of the end of March, the number of 5G mobile phone users has reached 620 million and the number of gigabit optical networks users has surpassed 100 million. The number of mobile Internet of Things users totals 1.984 billion, with 53.8% of "things" connected to the mobile internet. The foundation for the development of a world where all things are connected has been consolidated. Integrated applications have been advanced and 5G has been applied in 52 national economic categories. There have been over 50,000 cases of applying "dual-gigabit" infrastructure nationwide, featuring a 5G network and a gigabit optical network. And the mobile Internet of Things has been applied on a large scale in the construction of digital cities, smart transportation, mobile payments, and other areas.
Fourth, the experience and accessibility of convenient user services have been improved. Universal telecommunications services have been further promoted. Internet coverage in rural and remote areas has continued to be improved. The application of the 5G network in rural areas has been advanced. All these have provided strong support for the rural revitalization strategy. The sense of gains for users has been improved. In the first quarter, the download rates of mobile and fixed broadband networks have increased by 59.9% and 15.1% year on year, respectively. Rates for mobile internet services have dropped. Capacities for information accessibility have been enhanced. Progress has been made in improving internet applications for the convenience of senior citizens. We have also guided the promotion of a variety of excellent cases of improvements to mainstream websites and mobile phone apps nationwide.
Going forward, we will prioritize working in the following three areas to promote the development of the ICT sector and provide solid support for advancing high-quality economic and social development.
First, we will consolidate the development of digital infrastructure. We will introduce policies and initiatives to advance the coordinated development of the building of new information infrastructure, advance the infrastructure construction of broadband access services in border regions, expand the coverage of gigabit optical networks, promote cloud-network integration to strengthen information infrastructure in small- and medium-sized cities and advance the high-quality development of the mobile IoT. With all these efforts, we will advance the construction of new information infrastructure in an integrated way.
Second, we will accelerate technological and industrial innovation. We will promote breakthroughs in core technologies in key fields, including 6G, optical communications, and quantum communications, and research frontier technologies such as artificial intelligence, blockchain and digital twins. We will break through the bottleneck of core technologies in key fields to enhance resilience and security in industrial and supply chains.
Third, we will promote integrated applications across sectors. We will advance integrated applications of new-generation ICT such as 5G and gigabit optical networks in vertical industries, information consumption and areas that are important to people's lives and promote the large-scale application of the industrial internet. We will develop a demonstration model for innovative applications in key areas. By doing so, we will contribute to the digitalization of industries. Thank you.
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People's Posts and Telecommunications News:
This year is the last year to implement the three-year action plan (2021-2023) for the innovative development of the industrial internet. According to the plan, leapfrog progress will be made in the overall development of the industrial internet during the three years. What will you focus on this year to achieve this goal? Thank you.
Zhao Zhiguo:
Thank you for your question. The industrial internet is the strategic infrastructure for a new type of industrialization. It also serves as a crucial base for the in-depth integration of the digital and real economy. Since implementing the action plan over two years ago, we have adopted a moderately proactive approach and completed the infrastructure building. The analysis system for industrial internet identification has covered 31 provinces (autonomous regions, municipalities) and 40 sectors, providing services for over 250,000 enterprises. A multi-layered system consisting of comprehensive, featured, and professional industrial internet platforms has been developed. The amount of equipment connected to key platforms now exceeds 81 million. We have adopted a demand-oriented approach and further promoted integrated applications. The industrial internet has been applied to 45 national economic categories and 166 subcategories, covering over 85% of industrial categories. In the first quarter, we launched 218 industrial internet demonstration projects, including 5G factories, industrial internet parks, and public service platforms. We also created a batch of application models for factories and industrial parks in understanding and applying the industrial internet and enabling them to carry out the transformation with guts and knowledge so as to speed up digital transformation. Currently, the total output value of the core industry has surpassed 1.2 trillion yuan, increasing by 15.5% year on year.
Next, we will focus on large-scale application and high-quality development and prioritize three aspects: policies, technologies and applications. We will guide all regions and sectors to make greater efforts towards leapfrog development of the industrial internet, thus providing stronger support for advancing a new type of industrialization.
First, we will fully play the leading role of policies and strengthen institutional guarantees. We will formulate guidelines on the high-quality development of the industrial internet and advance the application of the "5G Plus Industrial Internet" in terms of industrial supply, in-depth application, and industrial cluster development to improve the top-level design. We will deepen the cooperation between industry and finance and the integration between industry and education, direct more investment from different types of capital, and cultivate high-level, versatile, and skilled talents to further create a sound development environment.
Second, we will pursue innovation-driven development and strive to make technological breakthroughs. We will launch a new round of innovative projects for industrial internet development, promote breakthroughs in core technologies in key fields of the industrial internet and their industrialization, break the bottleneck in technologies for large-scale application, and enhance the security capacity of the industrial internet. We will make and implement a batch of standards for emergency use and promote large-scale application with standardization. We will foster more diversified, high-quality and professional solutions to further enhance the supply capabilities of the industrial internet.
Third, we will advance coordination between industrial and supply chains and the industrial internet and move faster to promote large-scale use of industrial internet applications. We will actively promote close coordination between industrial and supply chains and the industrial internet. Focusing on key sectors, we will formulate guidelines on the integrated application of the industrial internet in key sectors such as electronic information and engineering machinery; moreover, we will advance the action to promote the application of the industrial internet identification to promote the wide application of the industrial internet in key industrial chains. By concentrating on key enterprises, we will give full play to the principal role of leading enterprises in bringing upstream and downstream enterprises, especially SMEs, to be integrated into the industrial internet. Focusing on key regions, we will launch the campaign to promote the application of the industrial internet in 1,000 industrial parks in 100 cities to advance the application of industrial internet in industrial parks and clusters of industries at a faster pace and bring about the emergence of more good cases for the large-scale application of the industrial internet. Thank you!
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21st Century Business Herald:
In the first quarter of this year, the MIIT issued the list of SME industrial clusters with local features in 2022, drawing wide attention from all sectors of society. Can you talk about the progress related to this work? What follow-up measures will be taken to advance the recognition and cultivation of SME industrial clusters with local features? Thank you.
Tao Qing:
Thank you for your questions. SME industrial clusters with local features are located within counties. These clusters, characterized by their focus on leading industries with SMEs playing a dominant role, have distinctive advantages and features and core competitiveness. The MIIT has focused on six aspects, including improving the advantages of leading industries, advancing digital transformation, accelerating green and low-carbon development, deepening openness and cooperation, and enhancing governance and services, to foster clusters of industries. We have made clusters a fertile ground for developing SMEs into specialized and sophisticated enterprises that produce new and unique products, a carrier for promoting the regional economy, and a focal point for ensuring security and stability in industrial and supply chains.
The first batch of 100 SME industrial clusters with local features has remarkable effects in the following four aspects. First, the clusters bring together a significant number of quality SMEs. Hosting more than 280,000 SMEs, the clusters register a total output of over 1.8 trillion yuan. Among them, there are 55 manufacturing individual champions, 294 specialized and sophisticated "little giant" companies, 1,487 specialized and sophisticated SMEs that produce new and unique products, and around 5,000 innovative SMEs. Over 20% of the enterprises in the clusters are quality SMEs. Second, the clusters have significantly strengthened and upgraded weak links in industrial and supply chains. The clusters have developed high-level and professional supporting capacity in key links in industrial and supply chains of major industries, such as high-performance materials, smart chips, precision instruments, propulsion systems for new energy vehicles, and industrial robots. Third, we have seen their initial effects on propelling local economic growth. The leading industries in these clusters, which are all local pillar industries, contribute 87% of the clusters' output and play a crucial role in advancing the high-quality development of county economies. Fourth, the governance and service system for these clusters continues to improve. Over 70% of the clusters have enjoyed services provided by national public service demonstration platforms for SMEs. Nearly 90% of the clusters have established mechanisms for promoting the development of industries. Over 90% of the clusters have built mechanisms for protecting SMEs' legitimate rights and interests. A cluster governance model featuring extensive consultation, shared benefits, joint construction, and joint governance has emerged.
We plan to foster another 100 SME clusters for distinctive local businesses nationwide this year. We will fully implement the guiding principles of the 20th CPC National Congress and the plans made at the Central Economic Work Conference and the Two Sessions, and further advance the work on SME clusters for distinctive local businesses. First, we will guide the clusters to develop leading industries and strengthen the core competitiveness of SMEs. We will enhance the vitality of county economies and improve the resilience of industrial and supply chains and the supporting capacity at key links. Second, we will provide guidance and evaluation for the development of clusters. We will carry out publicity for cases of excellent clusters, promote typical experiences, and step up quality management of clusters that have been recognized to ensure that solid progress will be made in the development of clusters. Third, we will launch research and introduce policies and measures to promote the development of clusters. We will enhance policy guidance and resource coordination, build a hierarchical system for cultivating clusters, and guide and support local governments in cultivating a batch of clusters at the provincial level. Thank you.
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China Electronics News:
Recently, the MIIT hosted the first National Industry and Finance Cooperation Conference, building a bridge of communication and collaboration between the industrial and financial sectors. Could you please elaborate on that? Going forward, what measures will the MIIT take to advance new industrialization and boost China's strength in manufacturing and cyberspace at a faster pace? Thank you!
Zhao Zhiguo:
Thank you for your questions. The CPC Central Committee and the State Council have attached great importance to giving full play to the role of finance in supporting the real economy, especially the manufacturing industry. The MIIT, together with finance, financial regulation, and other departments, has actively implemented the decisions and plans of the CPC Central Committee and the State Council, taken innovative steps to advance industry and finance cooperation, and introduced a series of policies and measures to give financial support to the real economy.
We have carried out innovative practices of industry-finance cooperation in 51 pilot cities nationwide and continue to optimize the environment for financing and industry-finance cooperation. We have established strategic cooperation with 21 financial institutions, focusing on supporting the advanced manufacturing industry and serving the real economy. We have set up the national industry-finance cooperation platform, hosting nearly 190,000 quality enterprises in the industry and information sector and over 1,500 financial and investment institutions, and helping enterprises obtain 513.62 billion yuan in financing. As a major channel, the platform supports the application of re-lending facilities to support technological innovation. It has supported over 4,100 national demonstration enterprises for technological innovation, manufacturing individual champions, and specialized and sophisticated SMEs that produce new and unique products, with financing of over 270 billion yuan. Meanwhile, to promote the virtuous cycle of science and technology, industry, and finance, we have worked with financial and investment institutions to launch special pilot projects for the integration of science and technology, industry, and finance, and jointly explore the whole-chain service system for the commercialization and application of scientific and technological advances.
According to the report to the 20th CPC National Congress, by 2035, we will basically achieve new industrialization. The report emphasizes that we must continue to focus on the real economy in pursuing economic growth and that we will advance new industrialization and move faster to boost China's strength in manufacturing and cyberspace. The new industrialization is the industrialization of high-end, smart, and green production. It is the industrialization of collaborative innovation among small, medium, and large enterprises and the simultaneous development of the "four modernizations." It is also the industrialization of in-depth integration of digital and real economy, creating huge development opportunities for industry-finance cooperation.
Next, together with relevant departments, the MIIT will continue to deepen industry-finance cooperation and jointly advance new industrialization through consistent efforts. First, we will summarize experiences and take practical actions to put the outcomes of the first National Industry and Finance Cooperation Conference into practice and advance industry-finance cooperation to deliver more solid outcomes. Second, we will explore possibilities for combining new technologies, new industries, and new business forms with finance to promote synergy between industrial development, scientific and technological innovation, and modern finance. Third, we will give full play to the role of the national industry-finance cooperation platform, shore up weak links, build up strengths, and reinforce the foundation of industrial and supply chains. We will focus on major projects, key programs, and major enterprises, advance innovation in financial products and services, and pool together financial resources to transform and upgrade traditional industries, reinforce and extend competitive industries, cultivate and develop emerging industries, and make plans for future industries in advance. Thank you.
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People.com.cn:
Recently, the MIIT and other 10 departments jointly issued guidelines on fostering traditional robust food production areas and the local specialty food industry. What measures will be taken according to the guidelines to advance the high-quality development of the food industry? Thank you.
Tao Qing:
Thank you for your question.
The food industry brings profits to those who work on the land and happiness to those who eat the food. It concerns people's livelihoods and is also one of China's key industrial sectors.
In the first quarter of this year, the food manufacturing industry has maintained steady growth, with a strong momentum for recovery. Traditional robust food production areas and local specialty foods have become crucial carriers and critical drivers for the development of the food industry. With the improvement in people's living standards, people have a stronger demand for quality, nutritious, delicious and healthy food with a unique history and culture. Fostering traditional robust food production areas and the local specialty food industry will not only better meet people's ever-growing needs for a better life but also play a significant role in promoting local economic and social development, rural revitalization, and the realization of common prosperity.
This year, the MIIT, together with other 10 departments, has issued guidelines on fostering traditional robust food production areas and the local specialty food industry, guiding localities to make full use of their resource endowment and actively unleash the potential for industrial development to create growth drivers for the food industry. The guidelines set out development goals for traditional robust food production areas and the local specialty food industry. It plans to initially create a development pattern for local specialty food by 2025, comprising leading enterprises whose revenues surpass 10 billion yuan, clusters whose revenues exceed 100 billion yuan, and industries whose revenues are above 1 trillion yuan. Specifically, we will foster more than five traditional robust food production areas with revenues over 100 billion yuan, 25 leading enterprises with revenues above 10 billion yuan, and a group of famous local specialty food brands nationwide and typical cases of industrialization of local specialty food.
Going forward, the MIIT will work with relevant departments to make concerted efforts throughout the industrial chains of the food industry to advance the high-quality development of the local specialty food industry. First, we will speed up the construction of large-scale crop and livestock bases for quality agricultural products to ensure a stable and reliable supply of production materials for local specialty foods. Second, we will improve techniques, technologies, and equipment to ensure product quality while raising production and processing efficiency. Third, we will promote the development of clusters of specialty industries and enhance coordination throughout industrial chains to promote small, medium, and large enterprises to pursue development through greater synergy. Fourth, we will improve the inheritance of local traditional food culture and processing techniques to improve product brand awareness and influence while maintaining local specialty food's original taste and flavor. Thank you.
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Bauhinia Magazine:
In recent years, the integrated application of ICT has deepened and injected new impetus into high-quality economic and social development. What specific roles has it played? And what are the considerations for follow-up work? Thank you.
Zhao Zhiguo:
Thanks for your questions. The ICT sector is the strategic, fundamental, and pioneering sector to support economic and social development. Over the years, with the full implementation of the national cyber development strategy and the Digital China strategy, we have seen a significant improvement in the quality of ICT services. The integration of ICT into areas related to the national economy and social development has continued to be advanced. It mainly has three features.
First, the integrated application of ICT has empowered the real economy at a deeper level. The new generation of information technology, such as 5G, has been deeply integrated into key areas of the real economy, including manufacturing, transportation, and tourism. Recently, the MIIT has worked with the Ministry of Culture and Tourism to introduce policies and documents concerning 5G smart tourism, actively expanding the new space for tourism development. 5G technology and artificial intelligence have been quickly applied to core production links. Construction of 5G-connected factories has been accelerated, bringing about profound changes in the production mode and pattern in the manufacturing sector.
Second, the integrated application of ICT has contributed to the construction of a digital society at a higher level. The application of smart medical care has been promoted at a faster pace. Over 80% of the pilot programs for 5G enabled healthcare services have been covered by 5G networks. Initial results were delivered in the development of smart education. The application of 5G technology in scenarios such as interactive online teaching and vocational training has continued to be deepened. Steady progress has been made in the construction of digital villages. Recently, we have worked with multiple departments to issue policies and documents, quickly advancing rural construction, governance and industrial development through digitalization. The digital government governance service efficacy has been significantly improved.
Third, the integrated application of ICT has improved people's lives in more areas. Mobile internet applications have thrived, reaching 2.61 million. That is to say, we use such apps in study, work, and life and their number has amounted to 2.61 million, greatly facilitating people's lives. We have launched campaigns to promote information consumption in districts and counties to contribute to rural revitalization, built platforms for exchanges and interaction between urban and rural areas, and helped farmers to increase their income. Digital technologies have been adapted for the convenience of senior citizens and have met the most prominent and pressing needs of senior groups aged 60 and above for digital life. The online retail sales in the first quarter nationwide stood at 3.3 trillion yuan, up 8.6% year on year.
This year marks the last year for carrying out several three-year action plans, such as the coordinated development of "Double Gigabit" networks, the comprehensive and coordinated development of 5G technologies, and the development of new types of data centers. Next, after completing the missions, we will make good use of integrated applications to continue to create growth divers for industries.
First, we will improve the supply of new technologies and products to create a strong engine for empowerment through integrated applications. We will carry out the action of empowering through enhanced computing infrastructure and promote the cloud-edge-terminal collaboration and integration of computing, storage, and operation. We will focus on 5G, integrated circuits and other key areas, and improve the supply of basic software, hardware, and core electronic components. We will strengthen the generic technology R&D and industrialized and coordinated development of artificial intelligence.
Second, we will strengthen application guidance in key sectors and areas to set up the primary platform for empowerment through integrated applications. We will carry out the projects for the large-scale application of 5G technologies and guide the release of the guidelines for developing the 5G sector to push forward its application in industries. We will guide national pilot zones for innovative AI applications to offer open access to typical application scenarios to promote the upgrading of technologies and products.
Third, we will promote small, medium, and large enterprises to pursue development through greater synergy to forge the principal force for empowerment through integrated applications. We will cultivate a group of leading enterprises in industrial chains, specialized enterprises that use sophisticated technologies to produce new and unique products as well as champion companies in the manufacturing industry segments, and develop a hierarchical development pattern. We will encourage large enterprises to build digital platforms and share data resources and capacities with SMEs to lower the thresholds for the transformation of SMEs. Thank you!
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Shou Xiaoli:
The last two questions, please.
CCTV.com:
Recently, China and France signed a cooperation agreement, setting the record for the largest single order by value that Chinese shipbuilders have ever received. How did the shipbuilding industry perform in the first quarter of this year? Thank you.
Tao Qing:
Thank you for your question. In the first quarter of 2023, the shipbuilding industry has rebounded. While registering stable performance, the industry also has demonstrated good momentum for growth, made steady progress and improved quality. According to statistics, in the first three months, the completed volume of shipbuilding in China reached 9.17 million deadweight tons (DWT). New shipbuilding orders amounted to 15.18 million DWT, increasing by 53% year on year. At the end of March, the volume of holding orders stood at 11.452 billion DWT, up 15.6% year on year.
First, the industry registered stable performance with good momentum for growth. From January to March, China's completed volume and new and holding orders of shipbuilding in deadweight tonnage accounted for 43.5%, 62.9% and 50.8% of the global market share, ranking first in the world. China's shipbuilding industry led the world in terms of orders for 10 out of 18 mainstream ship types in 2021.
Second, the industry has made steady progress while ensuring stability. Breakthroughs have been made in high-end ships. As of the end of March, all six container ships with a TEU (20-foot equivalent unit) capacity of 24,000 delivered globally were built at Chinese shipyards. China's shipbuilding companies seized the favorable opportunity when the car carrier market rebounded, and took all 24 orders globally for building car carriers in the first quarter of this year. Additionally, smooth progress has been made in building China's first self-developed large cruise ship, with over 91% of construction completed. Its equipment tuning work is well underway and interior installations are nearing completion. The cruise ship is expected to be delivered at the end of 2023.
Third, the industry has improved quality while ensuring stability. The quality of shipbuilding orders has been significantly enhanced and green development has been accelerated. From January to March, the structure of new shipbuilding orders received has been optimized, with CGT/DWT ratio standing at 0.485, marking the best level in history. Since the beginning of 2022, the orders of green-energy-powered ships have taken up 50% of new shipbuilding orders. As you mentioned, a series of deals concerning the construction of green and low-carbon large container ships were inked between China State Shipbuilding Corp and French shipping group CMA CGM, comprising 12 dual-fuel methanol-powered container ships with a capacity of 15,000 TEUs and four 23,000 TEUs dual-fuel liquefied natural gas (LNG) powered ones, worth more than 21 billion yuan in total.
On the whole, playing an increasingly greater and more influential role in global industrial and supply chains, China's shipbuilding industry will also be advanced from a new and higher starting point. Thank you.
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Voice of China, China Media Group:
We noticed that the MIIT recently issued a notice on further improving the service capacity of mobile internet applications, aiming to optimize the services and enhance user experience. What progress has the MIIT made in promoting ICT for people's livelihoods this year? What's the next plan? Thank you.
Zhao Zhiguo:
Thank you for your questions. ICT services concern the vital interests and personal experiences of the public. The MIIT has embraced a people-centered development philosophy and taken practical measures to enhance people's livelihoods. In the first quarter of this year, we have improved institutions and regulations. We issued notices about further improving the service capacity of mobile internet applications and introduced a range of standards, including evaluation standards, to protect the rights and interests of app users. We have set up a complaint-handling center for radio frequency interference and further improved our service systems. We have also expanded the range of service applications available to users. The average speed of mobile networks has been on the rise. Applications such as livestreaming and online tourism have thrived. The number of active apps reached 2.61 million. The mobile internet has been deeply integrated into people's production, life, studies and work, providing quality services with quick accessibility. We have improved digital services to bring more benefits to people. We have continued to carry out activities with themes such as "Do Practical Things for the People," "Heartfelt and Dedicated Services," and "Service Hubs." We selected and promoted a batch of excellent cases of improving services in frequently encountered scenarios for the convenience of senior citizens to provide more considerate and heartwarming digital services. We have addressed key issues and conducted tests on the technologies of 50,000 apps. Moreover, we have brought attention to the violations of regulations committed by 101 apps and SDKs, with a specific emphasis on addressing concerns related to unwanted redirection or "shake-to-open" advertisements, in order to purify the service environment.
Next, we will give priority to the work in the following aspects.
First, we will improve the service system to create a sound environment. We will prioritize the improvement of the sector's conduct, rectify any misconduct, and expedite the development of a comprehensive modern service system. We will work to ensure that documents already issued are fully implemented, refine policies and measures, and make detailed standards and regulations to guide mobile internet applications to improve service quality throughout the process. We will accelerate the development of the public services platform for mobile internet applications and enhance technological capacities for monitoring and testing, risk warning, origin-tracing and authentication. We will improve mechanisms for industry self-regulation, coordinated services, evaluation and oversight to create a sound environment encouraging the pursuit of excellence and mutual reinforcement.
Second, we will provide enhanced services to improve user experience. We will accelerate the development of 5G and 1000M fiber optic networks, advance universal telecom services, and further expand internet coverage in both breadth and depth. We will promote the application of technologies and innovation in models and continue to expand service areas and scenarios. We will upgrade the functions of internet applications specially designed for the convenience of senior citizens, ensuring that services are more convenient and accessible to them. We will advance online and cross-regional handling of telecom services, improve customer services via video communication, and simplify the variety and quantity of plans to enable people to have easy access to and worry-free use of services and continue to improve their sense of gain and satisfaction.
Third, we will strengthen comprehensive governance to protect users' rights and interests. We will focus on the pressing difficulties and issues that concern the public most and work to resolve acute problems. We will strengthen app governance throughout all stages and regulate service behavior such as software installation and uninstallation, automatic renewals, and pop-up windows. Spamming activities will be curbed on a regular basis. We will collaborate with relevant departments to strengthen prevention at the source and promote call blocking anti-harassment services. We will strengthen the integrated technical prevention of telecom and internet fraud. The "card cutting campaign" targeting fraudulent schemes involving SIM cards and IOT cards will be advanced. We will step up efforts to advance the application of the 12381 SMS platform for early warning of fraud and promote a service that enables citizens to inquire about all mobile phone cards registered under their own ID numbers. With all these efforts, we will take practical steps to safeguard property security and the legitimate rights and interests of the people. Thank you!
Shou Xiaoli:
Thanks to all the speakers and the media participants for your valuable contributions. Today's briefing is now concluded. Goodbye!
Translated and edited by Zhu Bochen, Xu Kailin, Yuan Fang, Yang Xi, Zhang Junmian, Zhou Jing, Wang Wei, Wang Yiming, Liu Sitong, He Shan, Li Huiru, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.
