.
Read in Chinese
Speakers:
Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT)
Ms. Tao Qing, MIIT spokesperson and director general of the Operation Monitoring and Coordination Bureau of the MIIT
Chairperson:
Ms. Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO
Date:
Oct. 20, 2023
Xing Huina:
Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT), and Ms. Tao Qing, MIIT spokesperson and director general of the Operation Monitoring and Coordination Bureau of the MIIT, to introduce the development of industry and information technology in the first three quarters of 2023 and answer your questions.
Now, I'll give the floor to Mr. Zhao for his introduction.
Zhao Zhiguo:
Ladies and gentlemen, friends from the press, good afternoon. Thank you for your long-term interest in and support for the industry and information technology sector. Now, I will brief you on the sector's development in the first three quarters.
Since the beginning of the year, the MIIT has adhered to the guiding principles of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implemented the guiding principles of the 20th National Congress of the Communist Party of China (CPC), and earnestly put into practice the decisions and deployments made at the Central Economic Work Conference. Adhering to the general principle of pursuing progress while ensuring stability, all regions and departments united and collaborated, working together toward the common goal of continuously advancing quality and promoting reasonable growth within the industrial economy. In the first three quarters, industrial and informational development remained stable, with ongoing optimization of the industrial structure. New momentum and advantages were continually gathered and strengthened, consistently releasing energy for innovative growth. Positive outcomes were achieved in high-quality development.
First, the industrial economy is on a positive recovery trajectory. By implementing a series of growth-stabilization policies issued by the State Council, we have steadily fortified the momentum of industrial economic recovery. Major economic indicators show the following characteristics: Stable growth in industrial production. In the first three quarters, the added value of China's industrial enterprises above designated size increased by 4% year on year, with the growth rate accelerating by 0.2 percentage points compared to the first half of the year. The proportion of manufacturing added value to GDP remained essentially stable, with manufacturing investment continuously growing, and the growth rate gradually accelerating since July. Corporate profits have been recovering at a faster pace, with industrial enterprises above designated size seeing a 17.2% year-on-year increase in profits in August, and both operating income and profits turning positive.
Second, the manufacturing industry has made solid strides toward high-quality development. We have actively encouraged the fast-paced development of advanced manufacturing. In the first three quarters, investment in high-tech manufacturing grew by 11.3% year on year, with the growth rate surpassing general manufacturing investment by 5.1 percentage points. We accelerated the development of new products, industries and business models, leading to rapid growth in sectors like new energy vehicles, photovoltaic products and aerospace equipment. The three major indicators of China's shipbuilding industry, namely shipbuilding output, new orders and holding orders, continued to lead the way globally. The digital transformation process has accelerated, leading to the expansion and elevation of smart factory construction, with nearly 10,000 digital workshops and smart factories being established. New scenarios, solutions and models for intelligent manufacturing have been developed. Significant achievements have been made in improving industrial quality and efficiency.
Third, the information and communication sector continued to grow steadily. We have consistently leveraged and consolidated our strengths in this sector, supporting high-quality economic and social development. In the first three quarters, telecommunications business revenue grew by 6.8% year on year, and total business volume increased by 16.5% year on year. Network infrastructure has been continuously strengthened, with a total of 3.189 million 5G base stations built as of the end of September, and gigabit broadband users reaching 145 million. Network service capabilities continued to improve, with total computing power reaching 197 EFLOPS, and mobile network IPv6 traffic accounting for 58.4%. Innovations and integrated applications have deepened significantly, with 5G applications integrated into 67 major economic categories. Nationwide, there are more than 7,000 "5G + Industrial Internet" projects, and the number of mobile IoT terminals has reached 2.22 billion. The level of benefits to the public has steadily improved, with 1,924 commonly used websites and apps, and over 140 million smartphones and smart TVs, being updated to make them senior-friendly.
Fourth, small and medium-sized enterprises (SMEs) achieved remarkable progress. We strengthened policy support by implementing measures to ensure the stable growth of micro, small, and medium enterprises, adjust their structure, and enhance their capacity. In the first three quarters, many key indicators for the economic operation of SMEs recovered and improved. We have strengthened service support. We carried out targeted programs for SMEs, and also named a specific month to provide intense services for them. Digital transformation was enhanced. We selected and announced the first 30 pilot cities pioneering the digital transformation of SMEs so as to deeply integrate the digital economy into the real economy. We put a focus on fostering excellent enterprises and now have a total of 103,000 SMEs that use special and sophisticated technologies to produce novel and unique products, 12,000 "little giant" SMEs, and 200 featured industrial clusters. These SMEs have contributed their part to shoring up weak links in the industrial and supply chains .
From an overall perspective, despite facing difficulties, such as insufficient demand, the fundamentals sustaining the long-term growth of China's industrial economy have remained solid. The successful convening of the national meeting on promoting new industrialization has injected strong impetus for the development of the industrial economy. Hence, we are confident of its further recovery and progress. Going forward, the MIIT will continue to follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully implement the guiding principles of the 20th CPC National Congress, and act on the arrangements made at the national meeting on promoting new industrialization. We will stay confident in pursuing development, expand demand, strengthen the driving force, and hold the bottom line, making every effort to ensure the stable growth of industries so as to provide strong support for overall economic recovery.
That's my introduction. Next, my colleagues and I would like to answer your questions.
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Xing Huina:
The floor is now open for questions. Please identify the media outlet you represent before asking questions.
CCTV:
The CPC Central Committee and the State Council have attached great importance to the real economy, especially the development of the industrial economy. In the first three quarters, industrial production saw a steady recovery, and enterprises gained profits at a faster pace. How do you evaluate the development of the industrial economy over the first three quarters of this year? Thank you.
Zhao Zhiguo:
I will answer your question; thank you for asking. Since the beginning of this year, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we have upheld the general principle of pursuing progress while ensuring stability and taken concrete measures to implement the State Council's policies to ensure stable growth. We have concentrated on 10 major industries and collaborated with relevant departments to formulate and implement working plans on ensuring stable growth from 2023 to 2024. These industries included the steel and non-ferrous industries, which are of a large scale and are strong driving forces to growth. With the concerted efforts of all areas and all departments, industrial production has witnessed stable growth. In the first three quarters, the value-added of industries above designated size grew by 4% year on year, 0.2 percentage point faster than the growth rate in the first half of the year.
An overall stable performance was maintained in major industries, and the industrial structure has continued to be optimized. In the first three quarters, 27 of 41 major industrial categories retained a year-on-year growth in their added value. Among them, the equipment manufacturing industry saw faster growth. In the first three quarters, its value-added registered a rise of 6% year on year, 2 percentage points higher than the industrial growth in general. It contributed to an increase of 1.9 percentage points in growth for industries above designated size. In September, in particular, four sectors, including electrical machinery, chemical industry, electronics, and automobiles, contributed to nearly 60% of the industrial growth in general. Raw material manufacturing also accelerated its output. In the first three quarters, its added value rose by 6.5% year on year, 1.3 percentage points faster than the growth rate in the first half of the year. Of all raw material manufacturing sectors, chemical and non-ferrous industries enjoyed improvements in their needs and registered faster growth.
A higher growth rate was kept in the output of products related to new driving forces. In the first three quarters, the output of solar cells and charging stations rose by 63.2% and 34.2%, respectively. The output of electronics has also increased steadily, with a continuous rise in the output of smartphones since the beginning of the third quarter. According to statistics from the China Association of Automobile Manufacturers, in the first three quarters, the output and sales of new energy vehicles reached 6.313 million and 6.278 million, a year-on-year rise of 33.7% and 37.5%, respectively.
The industrial sector has shown a steady recovery in most of China's provinces and equivalent administrative units. In the first three quarters, industrial added value increased year on year in 28 out of the 31 provincial-level regions. Twenty provinces saw faster growth or a reduced decrease than in the H1. Growth rates rose in eight out of the top ten provinces that have notable industry output compared to those in the H1. Six provinces saw a higher growth rate than the national average, namely Jiangsu, Shandong, Sichuan, Hebei, Hubei, and Zhejiang.
Positive factors have been gradually cumulated. In the first three quarters, investment in the manufacturing sector continued to increase. Investment in high-tech manufacturing, in particular, grew 11.3% year on year, maintaining double-digit growth for 36 consecutive months. Meanwhile, the decrease in exports narrowed in the industrial sector. In September, the manufacturing purchasing managers' index (PMI) bounced back to the expansion zone. The producer price index (PPI) edged up on a monthly basis for two consecutive months. Enterprises made month-on-month progress. The decline in profits of industrial enterprises above designated size lessened for six consecutive months. The supply and demand of industrial products gradually improved. Industrial enterprise expectations and confidence strengthened.
Next, we will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and fully implement the guiding principles from the 20th CPC National Congress. We will strive to accomplish tasks arranged at the national meeting on promoting new industrialization and pursue high-quality development throughout the whole process. Seizing the opportunities for economic recovery and industrial transformation, we will step up efforts to increase demand, strengthen growth drivers, and safeguard the bottom line so as to ensure stable growth in the industrial sector. Thank you.
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The Poster News APP:
Could you please elaborate on the development of the new-energy vehicle (NEV) industry in the first three quarters of 2023? A newly released work plan for promoting stable growth of the automobile industry (2023-2024) set a target for annual sales. What measures will the MIIT take next to promote high-quality development in this sector? Thank you.
Tao Qing:
Thank you for your questions. In the first three quarters of 2023, China's NEV industry maintained a robust growth momentum, with joint efforts made by all relevant parties. First, the scale of the production and sales have further expanded. As Mr. Zhao just said, the production and sales of NEVs surged 33.7% and 37.5% in the first three quarters, respectively. The sales of new NEVs accounted for 29.8% of all new automobiles. Second, technology improved rapidly. The single-unit energy density of mass-produced power batteries reached 300 Wh/kg. The average battery range of pure electric passenger cars exceeded 460 kilometers. L2 and above self-driving vehicles accounted for more than 40% of total passenger cars. Third, brand competitiveness surged. In the first three quarters, new energy passenger cars of domestic brands accounted for 80.2% of such cars sold in the domestic market. China's NEV exports reached 825,000 units, up 110% year on year. Fourth, the supporting environment continuously improved. A total of 6.278 million charging piles and 3,460 battery swapping stations were built. More than 10,000 power battery recycling service outlets were set up. Over 20,000 kilometers of roads were designated for testing intelligent connected vehicles (ICVs), and the total test mileage exceeded 70 million kilometers.
Next, we will fully implement the decisions and plans of the CPC Central Committee and the State Council, as well as a 2021-2035 plan for the development of the NEV industry. Meanwhile, we will improve work measures and strengthen interdepartmental coordination so as to promote the high-quality development of the NEV industry.
First, we will improve mechanisms and strengthen coordination. We will act upon the spirit of this year's State Council executive meeting, leverage the role of the inter-ministerial coordination mechanism for the new energy vehicle industry's development, and coordinate the advancement of technological breakthroughs, widespread adoption, and infrastructure construction. We will accelerate the development of electrification, connectivity, and intelligence.
Second, we will continue to expand the domestic market. We will expedite formulating and adjusting technical requirements for tax exemptions and reductions when purchasing new energy vehicles. Initiatives will include launching pilot projects in public areas for comprehensive vehicle electrification and starting pilot programs for the access and on-road testing of intelligent connected vehicles. Additionally, we will aggressively promote the use of new energy vehicles in rural areas, solidifying the foundation of our domestic market.
Third, we will strengthen the development of supporting infrastructure and foster environmental support. We will put into practice the guiding opinions issued by the General Office of the State Council on building a high-quality charging infrastructure system, ensuring it aligns with the charging requirements of new energy vehicles. City-level demonstrations will be undertaken for "vehicle-road-cloud integration." Moreover, we will cultivate a robust system for the recycling and utilization of power batteries, amplifying our ability to safeguard vital resources.
Fourth, we will establish a comprehensive assurance system. We will expedite the formulation and revision of standards for electric vehicle and power battery safety, autonomous driving, operating systems, and other areas. We will reinforce production access management and oversee both in-process and post-process stages, guaranteeing the fundamental safety of new energy vehicles. This will inspire confidence in consumers to purchase and utilize them. Thank you.
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Cover News：
Since the beginning of this year, the information and communication sector has maintained a steady and rapid growth momentum, and its empowering effect has steadily emerged. Could you please introduce the specific achievements that have been made? Additionally, I would like to know the key arrangements for accelerating the development of the information industry in the future. Thank you.
Zhao Zhiguo:
I will answer this question. Thank you for your question. This year, the Ministry of Industry and Information Technology has continued to implement strategies aimed at building up China's strength in manufacturing, cyberspace, and the digital field. We have consistently pushed to empower economic and social development through information and communication technologies, achieving positive results. I have highlighted the growth of the information and communication sector earlier in my introduction, and I will now delve into the empowering role of the sector from three perspectives.
First, the industry has driven the transformation and upgrade of the real economy by improving quality and enhancing efficiency. As a sign of accelerated application breakthroughs, new-generation information technologies, represented by the industrial internet, have been integrated into 45 major sectors of the national economy. This integration has propelled the digital, internet-powered, and intelligent upgrading of the real economy. The number of industrial internet platforms that span across industries and domains has reached 50. These are commonly referred to as "dual-cross" platforms and connect nearly 90 million sets of equipment. The widespread use of digital technologies has profoundly altered the production methods and forms of traditional industries, effectively promoting comprehensive data circulation and flow. According to a survey, 85% of surveyed enterprises have witnessed a significant boost in production efficiency, demonstrated by a 20% reduction in production line time.
Second, the industry has facilitated the building of a digital society, characterized by universal and convenient services. Technologies such as 5G, artificial intelligence, and the Internet of Things have been deeply integrated into education, healthcare, and other fields, leading to a significant improvement in the digitization of public services. We have launched 109 pilot projects for "5G + smart education," consistently introducing digital application scenarios, including smart classrooms, smart teaching and research, and distance education. Supply of remote diagnosis, online consultations, and smart medical devices has been continuously enriched, enabling the widespread access to efficient and convenient smart healthcare services. The construction of digital rural areas has been accelerated, with the internet penetration rate in rural regions surpassing 60%. Consequently, the gap in internet penetration between urban and rural areas has been steadily decreasing.
Third, the industry has enhanced people's sense of happiness and fulfillment by delivering innovative applications. Digital technologies, such as ultra-high-definition video, digital rendering, and holographic interaction, have swiftly proliferated and found widespread applications in fields such as sports broadcasting, culture, and tourism, delivering premium and novel experiences to the public. The recently concluded 19th Asian Games in Hangzhou showcased innovative applications such as 8K ultra-high-definition video live streaming, VR spectating, transparent mega screens, ground projections, massive video interactions both inside and outside the venue, and 360-degree replays. These features provided an immersive and multi-perspective visual spectacle for audiences worldwide.
Going forward, we will continue to implement the decisions and plans of the CPC Central Committee and the State Council, coordinate development and security, strengthen strategic planning, and improve approaches and measures to inject new driving forces into high-quality economic and social development. First, we will accelerate the development of internet infrastructure. We will coordinate the development of "dual-gigabit" internet, which features a 5G network and a gigabit optical network. We will expand the deployment of 5G, the gigabit optical network, the mobile internet of things and Internet Protocol version 6 (IPv6), amid efforts to accelerate the building of "dual-gigabit" cities. We will launch signal upgrade initiatives to improve 5G network coverage and service quality in key industries and major application scenarios. Second, we will accelerate the industry's innovative development. We will prioritize applications and the complete equipment manufacturing to seek breakthroughs in core communication chips and key RF devices, and accelerate the lightweight 5G technology evolution, product development, and industrialization abilities to strengthen the support of industries. Third, we will step up efforts to unleash the empowerment effects of applications. We will promote the close synergy between the industrial internet and key industrial chains and promote the transformation of the industrial internet from useful to effective usages to empower the upgrading of the real economy. We will also promote applications of the "dual-gigabit" network in information consumption and areas that are important to people's lives to ensure that the fruits of information technology development can benefit all people fairly. Fourth, we will continue to improve the environment for our industrial development. We will deepen the reform of the market access system, promote applications of electronic licenses and certificates for telecommunications business operations, improve the multi-level legal systems for market supervision, expand the opening up of the telecommunications market in an orderly manner, and strive to create a market-oriented, law-based and internationalized business environment. Thank you.
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People's Posts and Telecommunications News:
2023 is the last year of the three-year (2021-2023) action plan for promoting 5G applications. What has been achieved in China's 5G development? What are the priorities for the next step?
Zhao Zhiguo:
Thank you for your questions. Representing a new generation of information and communication technology, 5G has become an important driving force for high-quality economic and social development. The MIIT has conscientiously implemented the decisions and plans of the CPC Central Committee and the State Council, continued to promote the in-depth integration of 5G into all fields of economic and social development, and achieved positive results in the innovative development of 5G applications.
First, the development environment has continuously improved. We have fully implemented the three-year action plan, organized all parties of the industry to speed up the network construction, expand integrated applications, and promote application innovation and innovative development of mobile communications. According to incomplete statistics, over 900 related policies and measures have been rolled out across the country, forming strong synergies featuring multi-departmental cooperation, coordination between central and local governments, and industrial collaboration.
Second, the digital foundation has been continuously strengthened. By the end of September, China had built 3.189 million 5G base stations, covering all prefecture-level cities and county seats, and there were 22.6 5G stations per 10,000 Chinese people. Over 90% of 5G base stations have been jointly built and shared, and progress has been made in promoting the intensive, efficient, green, and low-carbon development of 5G networks. The number of virtual private networks in the 5G industry has exceeded 20,000, providing stable, reliable, and secure network facilities for the industry.
Third, the empowerment effect has been increasingly prominent. 5G applications have covered the 67 major categories of the national economy, with the number of application cases exceeding 94,000. Applications of 5G in vertical industries, such as industry, mining, the power sector, and ports, have been widely replicated, helping enterprises improve quality, reduce costs, and increase efficiency. New applications based on 5G, such as Ultra HD videos and AR/VR, have further integrated into production and people's lives to improve user experience.
Fourth, innovation capability has continuously improved. We have actively promoted the formulation of 5G international standards. By the end of September this year, China's 5G standard essential patent (SEP) declarations accounted for 42% of the world's total, providing its solutions to promoting global 5G development. We issued a notice on promoting the evolution of 5G lightweight (RedCap) technology and application innovation and development and have jointly promoted the innovative development of lightweight 5G base stations, chips, and terminal industries. We have given full play to the advantages of wide coverage and strong penetration of low-frequency bands, refarming 800MHz and 900MHz bands for 5G public mobile communication systems to better utilize spectrum resources.
The next step will be to focus on three aspects, including construction, application, and research, using 5G to empower the real economy and providing strong support for high-quality economic development. First, we will further develop the networks. The development of the 5G networks will be steadily stepped up, enhancing supply capacities for 5G and raising service standards. Second, we will accelerate and promote its application. We will enhance 5G integrated applications, promote individual and industrial applications simultaneously, push forward the development of the 5G+industrial internet driven by innovation and facilitate 5G application on a large scale. Third, we will deepen technological research. We will strengthen 5G industrial support and systematically push forward the R&D and industrialization of 5G chips, modules, terminals, and other key devices, supporting the industrial evolution and upgrades. We will target the key point of 6G technological R&D, strive to make key technological breakthroughs, and enhance technological reserves, laying a solid foundation for its standard establishment and industrial development. Thanks.
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Nanfang Metropolis Daily:
Now a new generation of AI technology is growing rapidly across the world and playing a vital role in more and more fields. My question is, how will the MIIT boost the innovative development of the new generation of AI industry and better empower the real economy?
Tao Qing:
Thank you for your question. The development of AI, represented by large language models, features rapid technological innovation, strong application potential and fierce international competition. The deep integration of AI and the manufacturing sector is accelerating, which has deeply changed the production mode and economic form of the manufacturing sector. That shows a strong empowering effect of AI.
The MIIT has fully implemented the policy decisions and plans of the CPC Central Committee and the State Council, focuses on the integration of AI and the real economy, accelerates the cultivation and development of the AI industry, and facilitates the advancement of new industrialization. With the joint efforts of various departments and people from all walks of life, the core industry of AI in China has been growing in scale, with the number of related enterprises exceeding 4,400. Innovations related to smart chips, development frameworks, and general large-scale models are emerging. The synergetic development of cloud computing, intelligent computing, and supercomputing is supporting China's computing power to ensure it remains the second strongest globally. Mega projects such as “East Data, West Computing” which will channel more computing resources from the eastern areas to the less developed western regions, have been accelerated. The deep integration of AI and the manufacturing sector has effectively promoted the digital, intelligent, and green transformation of the real economy, with nearly 10,000 digital workshops and smart factories being built.
The next step will be to target key fields and strive to digitalize manufacturing and innovate the AI application. The efforts will be made in the following four aspects. First, we will lay a solid technological foundation for AI development. Major science and technology innovation programs will be launched to boost basic research and original innovation to achieve technological breakthroughs in large-scale model algorithms and frameworks, strengthen the computing power of smart chips, unlock data values, and enhance the R&D of "root" technologies. Second, we will promote the intelligent upgrade of key industries. We will promote the entire process of manufacturing to be intelligent, and the integrated application of AI technology in the whole process, largely raising the intelligent level of R&D, pilot-scale experiment, production, services, management, and other links. We will promote the AI pilot demonstration projects, expand special application scenarios, accelerate upgrading the manufacturing sector with digital and smart technologies, form real productivity, and improve quality and effectiveness of development of the manufacturing sector. Third, we will promote the development of intelligent products and equipment. We will leverage large-scale models featured with strong cognitive ability, strong interaction, and strong generative power to promote the upgrading and iteration of high-end equipment, key software and smart terminals, and improve the intelligent level of key products and equipment. Fourth, we will enhance the construction of the supporting service system. We will accelerate the cultivation of leading enterprises and innovative SMEs that use special and sophisticated technologies to produce novel and unique products, and establish innovation consortia. We will deepen international exchanges and cooperation in technological R&D, standard setting, ethical governance, and talent cultivation and make synergetic efforts to build a sound industrial ecosystem of artificial intelligence. Thanks.
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Hong Kong Bauhinia Magazine:
There has been significant social attention paid to the state of information and communication services. May I ask, how is the progress in this field at present? What are the considerations for the next steps? Thank you.
Zhao Zhiguo:
Thank you for your questions. Information and communication services are closely related to the immediate interests of the general public and can be felt directly. The MIIT upholds a people-centered approach for development and implements practical measures to improve people's livelihoods. In the first three quarters of this year, we focused on optimizing and enhancing service provision, user experience, and responsiveness, and enriched service applications. The number of available apps reached 2.61 million, accompanied by 7 million mini-programs. The mobile internet sector continues to expand service areas and scenarios. A total of 1,924 websites and apps commonly used by the elderly, along with over 140 million smartphones and smart TVs, have undergone elderly-friendly transformations and upgrades, ensuring that elderly and disabled individuals can fully enjoy the benefits of a digital life. User experience has been enhanced by promoting online and remote handling of telecommunication services and enhancing mobile internet application services. Key internet applications improved user experience throughout the whole process of service and continued to standardize services. In addition, the responsiveness to user demands has become more efficient, with widespread utilization of video customer services by enterprises offering basic telecommunications services, enabling smoother user interaction. Furthermore, mechanisms related to the internet information service complaint platform have been improved to facilitate timely responses to user demands.
Next, we will focus on the following areas of work.
First is to optimize services to enhance user experience. We will deepen efforts to enhance mobile internet application services, promote and publicize exemplary cases, and improve user experience through enhanced services. We will provide more convenience for domestic and international users through high-quality and globally-oriented digital services. We will develop and implement action plans related to the elderly-friendly adaptation of digital technologies, promoting 5G, artificial intelligence, big data, and other information technologies to fully expand accessibility of information services and ensure equal and full participation of elderly individuals and other groups with special needs in digital life.
Second is to intensify comprehensive regulation to safeguard the legitimate rights and interests of the people. We will continue to regulate services such as software installation and uninstallation, operation and interaction, service renewal, and complaint handling, addressing prominent issues that have received strong public feedback. We will promote coordination and collaboration among the mobile internet application industry's upstream and downstream sectors, including application stores, SDK, and mobile terminals, to enhance overall service quality and standards. We will persistently combat spam messages, implement the "card cutting campaign," strengthen the 12381 warning system, and offer one-stop registration query services, effectively safeguarding people's property security and legitimate rights and interests.
Third is to establish a sound long-term mechanism to create a healthy service environment. We will improve policies, measures, and standards and norms, research and develop compliance guidelines for telecommunications and internet services, and release a series of compliance standards for app development and operation. These efforts will provide clearer guidance for enterprises to conduct their business activities. We will fully leverage the foundational role of credit supervision, improve the credit scoring mechanism in the information and communication industry, and promote enterprises to operate in accordance with the law and with integrity. We will provide guidance to relevant industry stakeholders in areas such as technical support, testing and certification, and compliance and audits, fostering a pattern of society-wide co-governance. Thank you.
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Phoenix TV:
The new materials industry is an important strategic emerging industry in our country, with significant implications for promoting technological innovation and manufacturing industry optimization and upgrades. Could you please provide an overview of the current development of the new materials industry? And what do you plan to do next?
Tao Qing:
Thank you for your questions. New materials represent a strategic, foundational, and leading industry that is integral to the comprehensive establishment of a modernized economy. The CPC Central Committee places significant emphasis on the innovative development of new materials.
China's new material industry has grown and developed rapidly in recent years. First, the scale of the sector continues to expand. According to relevant statistics, the total output value of the new material industry from January to September this year exceeded 5 trillion yuan, maintaining double-digit growth. Second, the innovation capabilities of the industry continue to improve. Seven national manufacturing innovation centers in new materials and 35 key platforms for new materials in three categories have been established, forming a relatively complete innovation support system. A number of major key materials have made breakthroughs, and cutting-edge technologies, such as high-temperature superconducting materials and perovskite solar cell materials, have emerged. Third, the strength of enterprises has gradually increased. There are more than 20,000 new material companies above the designated size, including 1,972 specialized and sophisticated "little giant" companies and 248 manufacturing enterprises that are champions in their individual categories, accounting for 22% and 25% of its kind, respectively. Several leading companies in key fields have been cultivated. The collaborative development environment for enterprises of all sizes is taking shape. In the field of new materials, seven national advanced manufacturing clusters have been fostered, serving as an "accelerator" for regional economic growth.
Next, the MIIT will carefully study the principles from General Secretary Xi Jinping's important instructions, implement the deployment of a national meeting on pushing forward new industrialization, and focus on addressing weak links, enhancing strengths, exploring frontiers, and optimizing the ecosystem. We will continue to make efforts to promote the innovation and development of the new material industry, building it into a new growth engine. First, we need to accelerate breakthroughs in key areas. Focusing on deficiencies in people's livelihoods and the significant requirements of establishing China as a manufacturing leader, we will support collaborative innovation and breakthroughs in industrialization through partnerships between industry, academia, research, and application. Our goal is to enhance the resilience and security of our industrial and supply chains. Second, we will focus on developing areas of advantage. Targeting cutting-edge materials with a foundation for industrialization and key materials with a strong basis for innovation, we will support scenario exploration, promotion, and application, adopting a materials-centered approach. Third, we aim to optimize and bolster the innovation ecosystem. By improving the framework of the new material standard system, guiding various forms of nongovernmental capital to invest more in the sector, and stimulating the energy of different market entities, we hope to cultivate a favorable environment for the new material industry. Thank you.
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Yicai:
I would like to ask the MIIT: How has the development of China's software industry progressed this year? What plans does the MIIT have to promote high-quality development in the software industry? Thank you.
Tao Qing:
Thank you for your questions. Software is the very soul of next-generation information technology. It serves as an important foundation for the development of the digital economy and is a key pillar in strengthening China's capacities in manufacturing, cyberspace, and digital development. The software industry, as a whole, showcases stable growth, controllable risks, enhanced efficiency, and increased vitality. Its comprehensive strength has reached a new level.
In the first three quarters of this year, China's software and information technology service industry demonstrated steady performance, with software business revenue maintaining rapid growth. From January to August, the software sector's business revenue surpassed 7.5 trillion yuan, marking a year-on-year increase of 13.5%. This growth has been sustained in double digits for 10 consecutive months. The influence of industrial clusters is evident as software business revenue from China's renowned software cities contributes to approximately 80% of national software business revenue. Acceleration in key software innovation is evident, software application promotion continues to deepen, and the nurturing of emerging business models has yielded positive outcomes.
Going forward, we will thoroughly implement the guiding principles of the 20th CPC National Congress. We'll steadily advance the implementation of the national software development strategy. By adhering to the industrial development principles of application-led growth, innovative drive, and ecological cultivation, we aim to accelerate the software industry's high-quality development. We are committed to achieving the following tasks:
First, we will enhance the top-level design. We will implementing policies to promote the high-quality development of the integrated circuit industry and software industry in the new era and accelerate the implementation of relevant measures represented by the 14th Five-Year Plan for the Development of Software and Information Technology Service Industries, and intensify efforts in its follow-up work and relevant evaluations.
Second, we will accelerate the application of software. We will adhere to an application-driven approach, promote institutional innovations, focus on the needs of typical application scenarios, and enhance the alignment of software supply and demand, so as to create a virtuous cycle featuring supply-demand synergy and iterative self-consistency.
Third, we will step up efforts to achieve technological breakthroughs. We will uphold innovation-driven concepts, concentrate our strengths, innovate models, and work on making technological breakthroughs in core technologies of key software. This will involve shoring up weak links, cultivating advantages, and improving the technological supply competence of key industries.
Fourth, we will build open-source systems. We will reinforce the top-level design of open-source development. We will accelerate the construction of open-source foundations and rally a wide array of open-source forces. This effort aims to promote the development of platforms, communities, and agreements in open source, cultivate a batch of quality open-source projects, explore the commercial use of open-source products, and create a sound open-source cultural atmosphere.
Fifth, we will optimize the industrial environment. We will build a cluster of high-quality software cities and parks across China and promote the development and upgrading of the software industry. We will also build a batch of specialized demonstrative software colleges at a high level to cultivate talents urgently needed in key software fields, strengthen the leading role of standards, improve the value of software, and enhance the protection of software intellectual property rights. Thank you.
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21st Century Business Herald:
As the digital economy has achieved robust development, especially with the emergence of large scale models, computing power, as a fundamental cornerstone, has received wide attention from all walks of life as a basic support. I would like to ask, how is the development of the computing power industry of China? Recently, the MIIT has jointly launched the Action Plan for High-quality Development of Computing Power Infrastructure with multiple departments. I would like to ask, what concrete measures will be taken to ensure the implementation of the plan? Thank you.
Zhao Zhiguo:
Thank you for your questions. Recently, the action plan jointly issued by the MIIT and relevant departments has received wide attention. The MIIT has actively organized relevant parties to ensure the effective implementation of the plan. As a new type of key productive force, computing power has become a key driver affecting the development of the national digital economy. The ministry has thoroughly implemented the decisions and deployments made by the CPC Central Committee and the State Council, expedited the infrastructure construction of computing power, facilitated the transition and upgrading of industries, built a modernized infrastructure system, and achieved positive results.
First, we have strengthened our top-level design. We introduced an action plan to promote the high-quality development of computing power infrastructure. In light of the latest situation of computing power development, we have created a rational layout of national computing infrastructure, featuring the orientation of improving resource utilization, promoted the optimization of computing structure with intelligent computing power as the focus, facilitated the coordinated development of computing, network, storage and application with integrated development as the main line, and strengthened the collaboration between departments and industries to encourage major fields such as industry, finance, medical care, education, and energy to create a number of new computing business, new models, and new forms of business.
Second, we have consistently enhanced the capability of basic infrastructure of computing power. The data centers across China now house over 7.6 million standard racks, with a total computing power capacity of 197 EFLOPS. The computing power structure has been continuously optimized, and the scale of intelligent computing power has increased by 45% year on year. We have also accelerated the construction of the national computing hub, adding about 130 new trunk optical cables to enhance the layout of data center clusters. In addition, high-speed, long-distance transmission technology has effectively improved the quality of cross-regional data transmission. The artificial intelligence reasoning and training chips have accelerated the iterative optimization process, greatly improving their performance.
Third, we have further enhanced the role of computing power in empowering various sectors. The application of computing services has expanded from the internet field to equipment manufacturing, transportation, and other industries, gradually forming a dual-wheel drive in ToC and ToB markets. The featured application of computing power has achieved initial results. Real-time computing services such as intelligent driving, financial technology, and virtual reality are now widely used, and some regions have developed a number of computing applications with local characteristics centering around cloud services, animation rendering, and so on.
Next, focusing on 25 tasks from six aspects according to the action plan, we will carry out our work on advancing the development of computing power in the following three aspects. Firstly, we will work to ensure the implementation of the action plan, strengthen monitoring of indicators such as utilization rate of data centers, guide the construction of computing power infrastructure in an orderly manner, and build a gradient architecture for computing power infrastructure systems. With the support of relevant infrastructures, such as national new-type internet exchange centers and internet backbone access points, we will promote connectivity of computing power among multiple parties. Secondly, we will organize an open competition mechanism to select the best candidates to lead research on computing power infrastructure, speed up our efforts to make breakthroughs in signature technology products and plans, and accelerate the application of new technologies and products. We will work with all parties to actively advance the development of an AI computing architecture and software ecosystem. Thirdly, in response to market demand, led by application scenarios, and taking the application innovation contest as a driving force, we will advance the integrated development of computing power and traditional industries, enhance the implementation of computing power applications with novel models and distinct features, and give full play to the role of computing power in driving the growth of the digital economy. Thank you.
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Xing Huina:
The last question, please.
China Electronics News:
The electronic information manufacturing industry plays a crucial role in supporting the recovery and development of the industrial economy. How is the performance of the electronic information manufacturing industry at present? Next, what specific measures will be adopted by the MIIT to advance the high-quality development of the industrial sector? Thank you.
Tao Qing:
Thank you for your questions. As you have mentioned, the electronic information manufacturing industry plays a significant role in supporting the recovery and development of the industrial economy, which has attracted wide attention from the public. Since the beginning of this year, the development of China's electronic information manufacturing industry has maintained resilience, and its performance has steadily recovered. To be specific, there are the following four characteristics. Firstly, production has rebounded and steadily grown. From January to September, the added value of computer, communication, and other electronic equipment manufacturing industries above the designated size rose by 1.4% year on year, up 1.4 percentage points from the first half of this year. Secondly, the output of products has been generally stable. From January to September, the output of mobile phones in China reached 1.09 billion, up 0.8% year on year, with a year-on-year increase of 11.8% in September. The output of solar cells stood at 384 gigawatts, up 63.2% year on year. Thirdly, fixed-asset investment has remained at a high level. From January to September, fixed-asset investment in the industry increased by 10.2% year on year, 7.1 percentage points higher than the growth rate of national fixed-asset investment and up 0.8 percentage point from the first half of this year. Fourth, there has been a trend-bucking surge of growth in the export of some products. Since the beginning of this year, the export of televisions has been on the rise, with a year-on-year increase of 15.1% in export value from January to September. Based on the sustained rapid growth over the past few years, lithium-ion batteries and solar cells this year still maintained growth momentum, with an increase of 48% and 5.1%, respectively, in export value from January to September.
Next, the MIIT will fully implement the decisions and plans of the CPC Central Committee and the State Council, staying true to the general principle of pursuing progress while ensuring stability, consolidating the foundation for industrial development, and moving faster to foster new growth drivers to promote the high-quality development of the electronic information manufacturing sector.
Firstly, the MIIT will work to accelerate the recovery of the consumer market. The implementation of relevant policies and initiatives, such as the work plan to promote the steady growth of the electronic information manufacturing industry from 2023 to 2024, will be sped up. The MIIT will make use of innovation in technologies and product modalities to boost traditional electronics consumption, including mobile phones, computers, and televisions, and enhance publicity, promotion, guidance, and regulation for smart sports and smart health and elderly care. The MIIT will work to stabilize consumer market expectations and take active steps to foster new growth drivers for the industry.
Secondly, the MIIT will further give play to the role of investment in driving growth. The MIIT will move faster to carry out major projects, provide guidance for the rational layout of the industry, and advance the launch of the construction of projects in key areas, such as integrated circuits, new-type displays, communication equipment, smart hardware, and lithium-ion batteries, in an orderly manner.
Thirdly, the MIIT will foster new drivers of growth for industrial development at a faster pace. The MIIT will adhere to innovation-driven development and advance integration and synergy of innovation, industrial, capital, and talent chains. We will work on developing a new round of follow-up policies to support the development of the audiovisual industry, fully implement policies in the area of BDS application and smart photovoltaics, and move faster to encourage industries with weak links to make up deficiencies, as well as further develop industries with strong advantages, upgrade traditional industries, and build industrial chains in emerging industries.
Fourthly, the MIIT will keep enhancing openness and cooperation. The MIIT will expand diversified development spaces, open up wider, uphold win-win cooperation, actively participate in the multilateral and bilateral meetings in the area of electronic information, continue to improve the business environment for foreign investors, and create a market environment that ensures the free flow of resources and production factors and fair and well-ordered competition. Thank you.
Xing Huina:
Today's briefing is hereby concluded. Thanks to the speakers and friends from the media. See you!
Translated and edited by Wang Yiming, Wang Qian, Zhou Jing, Yang Xi, Li Xiao, Liu Caiyi, Yuan Fang, Zhang Junmian, Wang Yanfang, Huang Shan, Wang Ziteng, Liu Sitong, Yan Bin, Qin Qi, Li Huiru, Xu Kailin, 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.
