Read in Chinese

Speakers:

Mr. Liu Sushe, vice chairman of the National Development and Reform Commission (NDRC)

Mr. Yuan Da, deputy secretary-general of the NDRC and director general of the Department of National Economy of the NDRC

Mr. Jin Xiandong, director general of the Office of Policy Studies of the NDRC

Chairperson:

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

Date:

Jan. 18, 2024

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. Liu Sushe, vice chairman of the National Development and Reform Commission (NDRC); Mr. Yuan Da, deputy secretary-general of the NDRC and director general of the Department of National Economy of the NDRC; and Mr. Jin Xiandong, director general of the Office of Policy Studies of the NDRC, to brief you on the macroeconomic situation and policies, and to take your questions.

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

Liu Sushe:

Thank you, Ms. Xing. Friends from the media, good afternoon. I'm very pleased to attend this press conference together with two of my colleagues. 

Yesterday, the National Bureau of Statistics released the key indicators and data reflecting the national economic performance of 2023. Looking back at last year, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, the Chinese economy withstood external pressure and surmounted internal difficulties, securing steady development and expansion amid challenges. Against the backdrop of global turbulence and change and lackluster economic growth, China's economy has shown steady progress and sustained momentum of growth. First, the national economy witnessed the momentum of recovery. The gross domestic product (GDP) exceeded 126 trillion yuan ($17.52 trillion) in 2023, an increase of 5.2% over the previous year. Employment and prices were generally stable. Foreign exchange reserves surpassed 3.2 trillion yuan by the end of 2023. The major expected targets for economic and social development in 2023 were well achieved. Second, the economic structure was further adjusted and improved. The leading role of internal circulation was markedly enhanced. Domestic demand contributed 111.4% to the nation's economic growth in 2023, of which final consumption contributed 82.5%, propelling economic growth by 4.3 percentage points. Substantial innovations continued to emerge, and the transformation from old to new growth drivers accelerated. The value added of equipment manufacturing increased 6.8% year on year. The investments in high-tech manufacturing and high-tech services grew 9.9% and 11.4%, respectively. Thirdly, steady progress was made in pursuing high-quality development. The number of granted invention patents reached 921,000. The construction of a unified national market was accelerated, and the business environment was further optimized. Newly created jobs were expected to exceed 12 million in urban areas in 2023, and resident incomes continued to increase. The total grain output reached 695 million metric tons in 2023, setting another record high and remaining above 650 million metric tons for nine consecutive years. Energy supply remained stable, and the foundation for secure development was further consolidated. 

The Central Economic Work Conference identified the overall requirements, policy orientation, and key tasks for this year's economic work. The NDRC will earnestly take onboard the decisions and arrangements made by the CPC Central Committee and the State Council, as well as their requirements for the development and reform work, and ensure faithful implementation. We will follow the principle of seeking progress while maintaining stability, promoting stability through progress, and establishing the new before abolishing the old. Additionally, we will intensify macro regulation, make constant efforts to effectively upgrade the quality and appropriately expand the quantity of the national economy, and make new contributions to building China into a great modern socialist country in all respects and advancing the rejuvenation of the Chinese nation on all fronts by pursuing Chinese modernization.

The NDRC's major tasks include economic analysis, policy study, making medium- and long-term as well as annual plans, investment management, project construction, reform and innovation, comprehensive coordination, and overall balance. In line with these functions, the NDRC will place greater emphasis on expanding effective demand and leveraging reform and innovation to enhance development vitality and momentum. It will also focus more on developing and expanding the real economy, enhancing people's well-being, and improving the effectiveness of macroeconomic policies. The NDRC will particularly commit itself to the work in the following seven areas.

First, the NDRC will encourage scientific and technological innovations to lead the development of a modern industrial system. Efforts will be made to advance greater self-reliance and strength in science and technology, vigorously promote new industrialization, and strengthen innovation capacity. In addition, the shift from old to new growth drivers will be sped up, the transformation and upgrading of traditional industries will be boosted, and greater efforts will be made to develop the digital economy.

Second, the NDRC will focus on expanding domestic demand and promoting the steady recovery and expansion of consumption. The leading role of government investment will be better leveraged. This involves intensifying efforts in and making more effective use of government investment, such as additional issuance of government bonds, investments from the central government budget, and local government special-purpose bonds. Furthermore, private investment will be stimulated, and effective investment will be actively expanded.

Third, the NDRC will comprehensively deepen reform and opening up. We will unswervingly consolidate and develop the public sector and unswervingly encourage, support, and guide the development of the non-public sector. Efforts will be made to continuously promote reform of key links, accelerate the development of a unified national market, as well as build and refine a high-standard socialist market economy. What's more, endeavors will be made to expand high-standard opening up and promote high-quality development of Belt and Road cooperation. We will make efforts to advance stable and well-structured foreign trade, attract and utilize more foreign investment, and improve the quality and level of outbound investment. 

Fourth, the NDRC will promote the integration of urban and rural areas and coordinate regional development. Rural revitalization will be advanced on all fronts, and achievements in poverty alleviation will be consolidated and expanded. Steady progress will be made in people-oriented new urbanization, and major regional strategies and coordinated regional development strategies will be implemented thoroughly.

Fifth, the NDRC will further promote ecological conservation and green and low-carbon development. We will enhance ecological conservation as well as pollution prevention and control, speed up energy-saving renovations, and expand renewable energy consumption. Also, we will transition from assessing the total amount and intensity of energy consumption to assessing the total amount and intensity of carbon emissions.

Sixth, the NDRC will work to both pursue development and safeguard security, step up efforts to guarantee security for food, energy resources, industrial chains, and supply chains, and continue to effectively prevent and diffuse risks in key areas.

Seventh, the NDRC will take practical measures to ensure and improve people's well-being, implement an employment-first strategy, improve public services and social security, work to ensure market supply and stable prices, and continue to seek growth while improving people's well-being.

That's all for my briefing. My two colleagues and I are ready to take questions. Thank you!

Xing Huina:

Thank you, Mr. Liu, for the introduction. The floor is now open for questions. Please identify the news outlet you represent before raising your questions.

CCTV:

The mid-term assessment report on the implementation of the 14th Five-Year Plan mentioned that, as we are halfway through the 14th Five-Year period, more than half of the tasks have been accomplished. How do you interpret this? What further measures will be taken to accomplish the objectives and tasks, especially concerning innovation-driven development, as well as self-reliance and strength in science and technology? Thank you.

Liu Sushe:

Thank you! The 14th Five-Year Plan is the first Five-Year Plan since we finished building a moderately prosperous society in all respects, achieved the first centenary goal, and embarked on a new journey toward the second centenary goal of fully building a modern socialist country. In line with the decisions and plans of the CPC Central Committee and the State Council, the NDRC, in collaboration with relevant parties, conducted a mid-term assessment of the implementation of the Outline for the 14th Five-Year Plan (2021-2025). In December 2023, the Seventh Session of the 14th NPC Standing Committee reviewed the mid-term assessment report on the implementation of the Outline for the 14th Five-Year Plan for Economic and Social Development and the Long-Range Objectives through the Year 2035.

In terms of major objectives and indicators, during the first half of the 14th Five-Year Period, major economic indicators have remained within an appropriate range. Notable progress has been made in innovation-driven development; the people's well-being has increasingly improved; remarkable progress has been achieved in green development; and the capacity for safeguarding security has been significantly enhanced. Sixteen out of 20 major indicators either have basically met or exceeded expectations.

Regarding major strategic tasks, major strategic tasks in 17 aspects have proceeded smoothly. Significant progress has been made in building our self-reliance and strength in science and technology; the development of the modern industrial system has accelerated; rural revitalization has gotten off to a good start; solid gains have been made in advancing coordinated regional development; the development of ecological civilization has gained greater momentum; and the capacity for safeguarding national economic security has been continuously enhanced.

In terms of major projects and programs, the NDRC, in collaboration with relevant departments, has adhered to the principles that projects should align with plans and that investment funds and other production factors should be allocated accordingly. Efforts have been strengthened in dispatch and monitoring, and the support of production factors has been increased. Of the 102 major projects and programs currently underway, 96 have progressed as expected, and six have basically met expectations, strongly supporting the implementation of tasks in relevant fields.

Taking all these factors into account, the implementation of the Outline for the 14th Five-Year Plan has generally achieved the milestone that "as half of the 14th Five-Year period has passed, half of the tasks have been accomplished." This has been achieved despite difficulties, including the severe impact of the COVID-19 pandemic, accelerated changes in the international landscape, and various risks and challenges. This achievement was not easily attained, and it is important to fully recognize its value.

With regard to the innovation-driven development you just mentioned, allow me to provide a brief introduction. Notable progress has been made since the launch of the 14th Five-Year Plan. The number of new types of R&D institutions has surpassed 2,400. China has maintained its second position in terms of the number of most cited papers. Enterprises' spending on R&D has accounted for over 70% of total R&D spending. Moving forward, we will ensure that innovation remains at the heart of China's modernization drive and will take solid steps to work on four key aspects. First, we will leverage the new system's advantages for mobilizing nationwide resources and making breakthroughs in core technologies in key fields. Second, we will make basic research more forward-looking, strategic, and systematic and increase funding support. Third, we will promote the application of scientific and technological advances and reinforce the principal role of enterprises in innovation. Fourth, we will improve the training mechanism, employ researchers, and develop policies to attract innovators with international competitiveness.

Next, the NDRC will resolutely implement the decisions and plans of the CPC Central Committee and the State Council. We are firmly committed to grasping the essence of Chinese modernization and its essential requirements, advancing high-quality development, pursuing both development and security, and placing a higher priority on ensuring stable growth. The NDRC will endeavor to unleash the potential of domestic demand, enhance innovation capacity, foster new growth drivers, and work hard to deepen reforms and open up further. We aim to stablize public expectations and enhance people's confidence in development. The NDRC will tirelessly work on implementing all the objectives and tasks of the Outline of the 14th Five-Year Plan (2021-2025) to provide strong support for setting the stage for building a modern socialist country in all respects. Thank you.

Zhonghongwang:

Regarding the overall performance of the Chinese economy this year, how should we understand the value of a 5.2% growth rate? What will be the performance of the Chinese economy in 2024? Meanwhile, what opportunities and challenges will we encounter this year, and how should we address them? Thank you.

Liu Sushe:

Thank you, I'll take this question. Yesterday, the National Bureau of Statistics released data on major economic indicators for 2023. It is fair to say that we had a tough year in 2023. The Chinese economy has withstood internal pressures and overcome domestic difficulties. It has generally been on an upward trajectory, achieving main projected targets and making steady progress in pursuing high-quality development. This demonstrates three features: "stability, progress, and an upward trend," as I introduced in my opening remarks. Compared with other major global economies and with our own past performance, China has achieved hard-won economic success in 2023. It's truly remarkable that such achievements were made, given the increasingly adverse impact of changes and chaos in the external environment, the intertwining of domestic structural and cyclical problems, and the ongoing efforts to prevent and defuse risks in key areas. 

Looking forward, China's economic development faces both challenges and opportunities in 2024. In terms of challenges, the external environment is becoming more complex, strict, and uncertain. Meanwhile, domestic demand remains insufficient, some industries face excess capacity, social expectations are relatively weak, risks and hidden troubles still exist, and domestic economic flow is not smooth. In terms of opportunities, the ongoing sci-tech revolution and industrial transformation are reshaping the global economic landscape. The country's high-standard socialist market economy continues to improve. Socialism with Chinese characteristics is demonstrating its advantages, including an increasingly solid material foundation, a further advanced industrial system, and ample policy space. Overall, favorable conditions outweigh adverse ones, as there are plenty of supporting factors to boost the Chinese economy toward stable and sound development.

Let me elaborate on that more specifically. First, the Chinese domestic market contains huge potential. To promote high-quality economic development, China has heavily invested in sci-tech innovation capacity, future industries, green transformation, and the shift from old to new growth drivers. Today's investment generates tomorrow's competitiveness. Second, continuous reform and opening-up, as well as innovation, enhance internal momentum. As reform and opening-up deepens, China is advancing both its digital industry and the digital transformation of traditional industries, accelerating the application and transformation of future technologies such as artificial intelligence and quantum technology. With increasingly enlarged development space, continuously expanding application scenarios, and an improving business environment, business entities of all types will surely become more proactive, initiative-driven, and innovative. Third, the international market is poised to unleash more opportunities. With increasing global demand for green and low-carbon products, China's exports of "the new three," namely, electric manned vehicles, lithium-ion batteries, and photovoltaic products, are growing rapidly. "The new three," among numerous Chinese products, are high-quality, high-efficiency, and cost-effective, forming new driving forces for economic growth and meeting the global market's needs.

Overall, the basic trajectory of China's economic recovery and growth over the long run remains unchanged. An open China will continue to bring more opportunities for cooperation to the world. We have full confidence in the bright future of the Chinese economy. Thank you.

ThePaper.cn:

In 2023, China's exports of "the new three," namely, electric manned vehicles, lithium-ion batteries, and photovoltaic products, maintained rapid growth. Could you give us an introduction to the current development of new energy vehicles (NEVs)? What measures will be taken to promote high-quality development in this area? Thank you.

Jin Xiandong:

Thank you for your questions. Last year, due to market demand, macro policy, and the joint efforts of the entire industry, China's NEV sector maintained a sound growth momentum, embodying the following three characteristics. First, the scale of production and sales hit a record high. In 2023, China's production and sales of NEVs exceeded 9.58 million and 9.49 million units, surging 35.8% and 37.9% year on year, respectively, and accounted for more than 60% of the world's total, seizing the top position for nine consecutive years. The exports of NEVs soared 77.6% to more than 1.2 million units in the past year, which also hit a record high. Second, the NEVs' market share grew steadily. Last year, NEVs accounted for 31.6% of the total auto sales, up 6 percentage points compared to 2022. By the end of 2023, there were 20.41 million NEVs in use, accounting for 6.1% of the country's total vehicle ownership, an increase of 2 percentage points year on year. Third, supporting facilities continued to improve. At the end of last year, China had built 8.59 million charging facilities, ranking first in the world. A positive cycle is being established nationwide where NEVs and their charging infrastructure mutually support each other's advancement.

Next, the NDRC will fully implement the deployment made by the Central Economic Work Conference on big-ticket item consumption, including NEVs. We will work with relevant departments to improve policies, actively expand NEV consumption, and advance high-quality industrial development. First, we will accelerate the optimization of policies and measures to boost NEV consumption, deepen NEV development in rural areas, and promote the electrification of vehicles in public transportation to keep the NEV market sound and stable. Second, we will boost sci-tech innovation in the NEV sector, strengthen the leading role of auto enterprises in innovation, and upgrade electrification and intelligent technologies to increase the competitiveness of the whole industry. Third, we will accelerate the building of a high-quality charging infrastructure system, especially in key regions, complete a well-structured charging network, and optimize its operation and services to vigorously support the development of the NEV industry. Thank you.

Hong Kong Bauhinia Magazine:

As a robust pillar to underpin continuously sound economic growth, the private economy is an indispensable foundation for high-quality development. What measures will the NDRC take in the new year to better motivate its growth? Thank you.

Yuan Da:

Thank you for your question. Supporting the development of the private economy has been the consistent policy of the CPC Central Committee. The NDRC earnestly implements the decisions and arrangements of the CPC Central Committee and the State Council, continuously promoting the development and growth of the private economy. On the first working day of this year, which was Jan. 2, the NDRC held a conference in the city of Jinjiang, Fujian province, to promote the high-quality development of the private economy by showcasing the "Jinjiang Experience" in innovation and development. During the conference, the national financing credit service platform was launched, and a platform for promoting projects to private capital nationwide was presented. Relevant departments and regions also put forward specific measures to promote the development of the private economy, encouraging and supporting private enterprises to have firm confidence and make progress. The NDRC continues to strengthen communication and exchange mechanisms with private enterprises. On Jan. 9, Mr. Zheng presided over another symposium with private entrepreneurs, carefully listening to their suggestions and demands, and continuously working to address the practical difficulties raised by private enterprises. Next, the NDRC, together with relevant parties, will take more pragmatic measures, continuously improve the development environment for the private economy, effectively address the development difficulties of private enterprises, boost their confidence, and make sure that they feel the benefits. The focus will be on four key areas.

First, we will continuously strengthen the institutional and legal safeguards for the development of the private economy. We will accelerate the legislative process of the Promotion of the Private Economy Law, establish an institutional guarantee system to promote the development of the private economy, and ensure equal treatment of state-owned and private enterprises in terms of institutions and laws. This includes promoting the equal use of production factors, fair participation in market competition and equal legal protection for all types of ownership. We will fully leverage the role of the rule of law in establishing a solid foundation, stabilizing expectations and ensuring long-term benefits.

Second, we will rigorously implement and execute various policies to promote the development of the private economy. We will improve the information dissemination mechanism for private enterprises, increase project promotion efforts, and encourage and attract more private capital to participate in major national projects and projects aimed at addressing shortcomings. We will support private enterprises in carrying out core technology research in key fields, and collaborate with relevant parties to cultivate leading private technology enterprises in key industries, small and medium-sized enterprises (SMEs) that use special and sophisticated technologies to produce novel and unique products, and characteristic industrial clusters with strong innovation capabilities among SMEs. We will support private enterprises in participating in major strategies such as rural revitalization, regional coordinated development, and new urbanization, as well as deeply engaging in high-quality joint construction of the Belt and Road Initiative (BRI). We will strengthen the consistency evaluation of policies related to the development of the private economy.

Third, we will continue to ensure smooth channels for private enterprises to voice their concerns and provide solutions to their problems. We will continuously improve the system of monitoring indicators for the private economy and strengthen comprehensive analysis of the development situation of the private economy. We will improve the multi-level mechanism for regular communication and exchange with private enterprises, facilitating smooth communication channels between the government and enterprises. We will continue to promptly identify issues that hinder the development of the private economy, both on an individual case basis and in a broader context, and strive to solve one specific category of problems, benefit a number of enterprises and support an entire industry when addressing issues on an individual case basis. We are genuinely committed to addressing the concerns and difficulties faced by private enterprises and entrepreneurs.

Fourth, we will actively create a favorable atmosphere for promoting the development of the private economy. We will strengthen coordination and collaboration among various parties, and consolidate policy and operational forces that drive the high-quality development of the private economy. We will summarize and promote good experiences and practices from different regions in promoting the development of the private economy. We will study and formulate policy measures that can be replicated and scaled, facilitating mutual learning and mutual reference among different regions. We will showcase a group of exemplary private entrepreneurs who are bold, innovative and actively engaged in reforms. We will nurture and promote an entrepreneurial spirit, continuously fostering an environment that creates a correct understanding, full respect and active concern for the development of private enterprises. Thank you.

Market News International:

In 2023, low food price inflation contributed to China's overall low level of CPI. For this year, what is the outlook for food price inflation? And what policies will the NDRC pursue to influence food prices? Thank you. 

Jin Xiandong:

Thank you for your questions. In 2023, overall price levels in China remained stable, with an increase of 0.2% in the consumer price index (CPI) for the whole year, which was narrower than the previous year. Looking at the main reasons, in 2022, certain non-economic and non-conventional factors led to a significant increase in international market prices for energy and food. However, in 2023, these prices experienced a noticeable decline, resulting in an overall decrease. In terms of specific categories, firstly, within China's CPI, energy prices, influenced by import factors, changed from an 11.2% increase in 2022 to a 2.6% decrease in 2023. The 2.6% decline in energy prices last year directly contributed to an overall 0.2 percentage point decrease in CPI for the entire year. Secondly, food prices were influenced by import factors, seasonal factors and cyclical factors. They changed from a 2.8% increase in 2022 to a 0.3% decrease in 2023. The 0.3% decrease in food prices last year directly contributed to an overall 0.06 percentage point decrease in CPI for the entire year.

From the perspective of food price changes you mentioned, when examining specific subcategories, we can see that grain and edible oil prices remained relatively stable with a slight increase. Fresh fruit prices increased by 4.9% compared to the previous year. However, pork prices experienced a cyclical decline, with a year-on-year decrease of 13.6%. Fresh vegetable prices also saw a year-on-year decrease of 2.6%. Taking all factors into account, China's agricultural product market has sufficient supply, smooth logistics, well-regulated market order and stable price operations.

Next, together with relevant departments, we will monitor market supply and demand, as well as changes in price trends. We will ensure all links are well managed. This includes overseeing production and supply, coordinating between production and sales, handling imports and exports, and adjusting storage throughput for essential commodities like food. We aim to guarantee ample market supply and stable prices. We anticipate that, with the gradual reduction of base and cyclical effects, the steady recovery of market demand, and the continuous effectiveness of policies benefiting farmers, there is a foundation for the stable operation of food prices. Thank you.

Xinhua News Agency: 

According to the Central Economic Work Conference, the consistency of macroeconomic policy orientation should be enhanced. As the department responsible for macroeconomic regulation and comprehensive economic work, what plans does the NDRC have for the year 2024 in this regard? How will it ensure that policies in various fields converge and form a concerted effort? Thank you.

Yuan Da: 

Thank you for your questions. Assessing the consistency of macroeconomic policy orientation is a significant innovation in macroeconomic regulation and an important means to strengthen policy coordination. I will briefly introduce the relevant work in this aspect.

In accordance with the decisions and arrangements of the Party Central Committee and the State Council, in 2022, the NDRC took the lead in establishing a policy document assessment mechanism. This mechanism involved assessments of the consistency of newly introduced policies with macroeconomic policy orientation. When issuing documents related to macroeconomic stability and market expectation stability, all departments under the State Council must submit them to the NDRC for a consistency assessment. The main elements of this assessment include whether the policy documents align with the guiding principles of the Party Central Committee, whether they might have a contractionary or inhibitory impact on the economy, and whether they might adversely affect societal expectations. The assessment also provides timely opinions to make policies work together more effectively. Since initiating the assessment work, with the support and cooperation of relevant departments, the synergy of various policies has significantly improved, and their consistency with the macroeconomic policy orientation has continually been enhanced. At the same time, it is necessary to recognize that current societal expectations are relatively weak, highlighting the importance of reinforcing policy coordination. The Central Economic Work Conference has called for enhancing the consistency of macroeconomic policy orientation, incorporating non-economic policies into assessments, and strengthening policy coordination to ensure concerted efforts and synergy.

Next, the NDRC will thoroughly act upon the guiding principles of the Central Economic Work Conference and conduct high-quality assessments for consistency with macroeconomic policy orientation. First, the NDRC aims to enhance the assessment mechanism. Building on a review of the work from the past two years, it will strengthen assessment requirements, define the assessment scope, refine the evaluation process, and assess the impact of policies, including non-economic policies, scientifically and accurately to better serve the overarching goal of high-quality development. Second, the NDRC will comprehensively and prudently assess policy effects. It will rigorously examine the impact of various policies on economic aggregates, structure, supply and demand, industries, regions, employment, and expectations. It will prioritize policies conducive to stabilizing expectations, growth, and employment, while cautiously introducing contractionary or inhibitory measures. Comprehensive and precise analyses of the cumulative effects of a set of policies will be made to further enhance policy coordination and work synergy and to effectively prevent the "composition fallacy." Third, the NDRC will strengthen consistency in the policy implementation process. It will guide relevant departments to assess changes in the situation scientifically, seize the timing of policy formulation, strengthen expectation management, solicit opinions and suggestions, set policy transition periods appropriately, and ensure the seamless linking up and orderly progress of various tasks. In addition, it will enhance the analysis and judgment of potential risks during the policy implementation process, prevent problems such as excessive policy steps and one-size-fits-all approaches, and ensure that the ultimate effect of the policies aligns with the decisions and intentions of the Party Central Committee.

At the same time, the NDRC will continue to enhance economic situation analysis, strengthen economic monitoring, forecasting, and early warning, and conduct preparatory research to maintain policy options for different eventualities. It will deploy a comprehensive set of macroeconomic policies, further enhancing the foresight, scientific nature, and effectiveness of macroeconomic regulation, continuously consolidating and enhancing the positive economic recovery trend. Thank you.

Nanfang Daily: 

According to the 14th Five-Year Plan for the Implementation of New Urbanization, key strategies like the coordinated development of the Beijing-Tianjin-Hebei region, the integrated development of the Yangtze River Delta, and the construction of the Guangdong-Hong Kong-Macao Greater Bay Area will be enhanced, and the construction of world-class city clusters will be accelerated. As we know, a first-class business environment is essential for building first-class city clusters. Can you summarize the achievements in improving the business environment in various regions last year? What are the best practices for establishing a first-class business environment across different regions? Thank you.

Liu Sushe:

I'll answer your questions. The business environment is the foundation for the survival and development of enterprises and a crucial reflection of regional competitiveness. In recent years, the NDRC has earnestly implemented the decisions and arrangements of the Party Central Committee and the State Council, continuously deepening reforms in key areas of the business environment. To further promote the establishment of a market-oriented, law-based, and internationalized business environment in key regions, the NDRC has proactively guided these regions to strengthen reforms and innovations in the business environment.

First, the NDRC has enhanced top-level design and made targeted arrangements regarding the characteristics of each region. The NDRC has continuously introduced three-year action plans for business environment improvement in major regions. In 2022, the NDRC released an action plan for the Yangtze River Delta area. Focusing on integrated development, the plan has strengthened systems integration and coordination among various reform measures and further rolled out integration measures in more sectors and fields. So far, a total of 17 reform tasks in five aspects have seen proactive progress. The NDRC also introduced an action plan for the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) in 2023. Making the comprehensive alignment with high-standard international market rules as its priority, the plan aims to help the GBA create a unified, efficient, competitive, and orderly market environment, and make the area's government services more standard, convenient, open, and transparent. It also helps to advance the rule of law to facilitate fair, equitable, and sound development, and foster an open market featuring smooth economic circulation and win-win cooperation. The NDRC is currently working on the action plan for the Beijing-Tianjin-Hebei region. We will emphasize coordinated development and support the region to further deepen reform, promote innovation, and build synergy among key sectors in a bid to create a top-notch business environment for the region's efficient, coordinated development.

Second, the NDRC has strengthened innovation efforts at the primary level and encouraged local regions to develop more original measures in this regard. The aim of spearheading three-year action plans in these key regions is to make proactive attempts and develop effective innovation measures that meet the expectations of both enterprises and the public and further contribute to the improvement of the business environment nationwide. For example, the Yangtze River Delta region has deepened the reform measure that allows one company to set up branches after registering just once. The region is attempting to apply this reform measure to frequently-used operating business permits. It has also implemented innovative measures that streamline government inspection procedures via digital code and one-time joint inter-departmental administrative inspection. Another example in this regard is that the GBA is currently improving its new-type credit-based oversight mechanism. The GBA is also working to establish an independent review department on fair competition and exploring related concentrated and professional review mechanisms so as to make pilot efforts for rule alignment among the three localities involved.

Third, the NDRC has advanced institutional development and worked to establish long-term mechanisms applicable to other areas. Strengthening the institutional development of the business environment in key areas is a crucial prerequisite for ensuring the applicability of reform measures. The Yangtze River Delta region, namely Shanghai, Jiangsu, Zhejiang, and Anhui, has established a set of unified institutional arrangements in terms of government procurement, integrated customs working mechanism, and the criteria for law enforcement and judgment involving market supervision. Aligning with high-standard international economic and trade rules, the GBA also steps up stress tests and redoubled efforts to make more breakthroughs in institutional innovation. The three-year action plan for the Beijing-Tianjin-Hebei region will also make arrangements focusing on enhancing coordination mechanisms.

As stressed by General Secretary Xi Jinping, the improvement of the business environment is an ongoing process, and there is always room for things to become better. In accordance with the arrangements made by the CPC Central Committee and the State Council, the NDRC will keep working with related government bodies to continuously improve the business environment in key regions. We will work to provide more convenience and better services for the investment and business activities of all types of business entities and facilitate the implementation of major regional strategies. Thank you.

Red Star News:

Freezing cold is sweeping across the country these days, and we are currently experiencing a peak period for power use in winter. What are the key arrangements made by the NDRC to ensure energy supply? Thank you.

Jin Xiandong:

Thank you for the question. Since the beginning of the heating season, the NDRC has earnestly implemented the decisions and arrangements made by the CPC Central Committee and the State Council and took multiple measures to secure the energy supply and ensure heating services, together with member departments of the inter-departmental coordination mechanism to ensure the supply of coal, electricity, petroleum, natural gas. First, the NDRC has strengthened the supply capacity of coal, electricity, petroleum, and natural gas. The role of coal as a primary part of the energy supply has been leveraged, and the country's coal production has remained stable. Currently, the storage of coal at the country's power plants under unified national dispatch stands above 200 million metric tons, an increase of 30 million metric tons year on year. In the meantime, the capacity of electricity supply has also been enhanced with strengthened inter-provincial and inter-regional power dispatching systems. The NDRC has also seen to it that upstream natural gas suppliers increased production, ensured the application of imported energy resources, and kept the general natural gas and liquefied natural gas (LNG) reserves at a relatively high level before winter. Second, the NDRC has made all-out efforts to deal with natural disasters and other emergencies. In the face of impacts from earthquakes as well as freezing weather, sleet, and snowstorms, the NDRC promptly organized response efforts and ensured that risks and hazards were identified and emergencies were tackled. It also studied and made preparations in advance for the impact of the large-scale cold wave, strengthened resource allocation during the cold wave, and made every effort to improve power and natural gas supply capacity for peak use. In mid- to late-December last year, the country's highest daily power consumption hit a record 1.345 billion kilowatts, and the consumption of natural gas also saw an all-time high for eight consecutive days. Despite all this, the country's overall supply of coal, electricity, petroleum, natural gas, and transport services has remained stable, which effectively ensured a safe and warm winter for the people.

At present, China is in the "third and fourth nine-day period after the winter solstice," the peak time for energy consumption in winter. Thanks to the joint efforts of all parties, China's performance in the energy industry is generally stable. Next, the NDRC will continue to leverage the role of the coordination mechanism, and make every effort to ensure the heating energy supply, and make sure that people have a safe and warm winter and holiday period. First, energy production and supply will be guaranteed. We will adhere to the mechanism of daily dispatching and monitoring of energy in winter, maintain the high-level supply capacity of coal, electricity and natural gas, urge all parties to fulfill medium- and long-term energy contracts, and strengthen mutual complementarity and regional coordination of coal, electricity, oil and gas. Second, we will be well-prepared for low temperatures, rain, snow and disasters. We will closely follow the changing trend of extreme weather, organize major energy enterprises to prepare peak-shaving reserves in advance, strengthen the safe operation of the power grid and disaster maintenance, and make practical and detailed plans for power-load management and natural gas emergency supply. Third, we will ensure the energy supply for people's daily lives. We will urge all localities to fulfill the primary responsibility for ensuring energy use for people's daily lives, focus on weak links in energy supply such as replacing coal with natural gas and electricity in rural areas, and take decisive measures to solve individual and emerging problems. Thank you. 

National Business Daily:

According to the guiding principles of the Central Economic Work Conference, expanding domestic demand will remain a focus in 2024. What measures will the NDRC take to unleash the potential in consumption and investment growth? Thank you.

Yuan Da:

Thank you for your question. Consumption is the final demand; investment is both the current demand and the future supply. The purchase of goods or services can effectively drive increases in incomes and consumption, creating a virtuous economic cycle where demand drives supply, and in turn, supply leads and creates demand. At present and for some time to come, it is necessary to firmly implement the strategy of expanding domestic demand, further unleash consumption potential and expand effective investment so as to consolidate and strengthen the positive momentum of economic recovery. This year, we will focus on the following areas:

On the one hand, we will stimulate potential consumption. We need to make greater efforts to improve people's income expectations, and boost their capacity and willingness to spend. First, we will promote personal income growth through various channels. We will place a higher priority on pro-employment policies, ensure stable employment among key groups, actively expand channels for people to increase their incomes, enlarge the middle-income group, and strengthen measures to increase farmers' incomes. Second, we will make innovations in the supply of goods and services. Digital consumption, green consumption and health consumption will be encouraged. We will also foster new areas of consumption growth including smart home appliances, cultural and entertainment tourism, sports events and "China-chic" products, and promote spending on big-ticket items such as new energy vehicles and electronics. At the same time, we will encourage the replacement of old consumer goods with new ones which feature higher standards for technology, energy consumption and emissions. Third, we will improve the quality of goods and services consumption. We will continue to promote the quality grading of household appliances, children's products, textiles and garments as well as emerging consumer goods, strengthen the formulation of standards in relation to cultural tourism, sports, elderly care, housekeeping and other areas of services consumption, optimize consumption infrastructures in culture, tourism and sports, and improve the soft environment, so that people can consume with great satisfaction and peace of mind.

On the other hand, we will expand effective investment, which involves enlarging the scope for effective investment, continuously optimizing the investment environment, and effectively improving overall investment efficiency. First, we need to maximize government investment's driving and multiplier effects. Government investment should be focused more on infrastructure projects that lay the foundation, benefit the long term, and reinforce the foundation. This year, we will increase support for key core technologies and breakthroughs, new infrastructure, energy conservation, emission reduction, and carbon reduction, and accelerate the cultivation and development of new growth drivers. Second, we need to vigorously stimulate the vitality of private investment. We will enhance investment and financing mechanisms, as well as implement new government and social capital cooperation mechanisms. We will thoroughly review and compile a list of projects suitable for private capital participation and promote these projects through an online review, approval, and supervision platform. We will support social capital participation in areas such as the construction of new infrastructure. We will also address the obstacles, difficulties, and pain points that hinder private investment in terms of market access, factor acquisition, fair law enforcement, and protection of rights and interests. Third, we need to push for reducing investment and financing costs. We will improve the market-based interest rate formation, regulation, and transmission mechanisms to promote a steady and gradual reduction in society's comprehensive financing costs. Additionally, we will guide financial institutions to actively support private investment projects and encourage the development of venture capital and equity investment. We will implement and refine preferential tax and fee policies for small and micro enterprises and effectively reduce logistics costs for society as a whole. Fourth, we must continuously strengthen investment project services and ensure the necessary factors. We will enhance coordination and cooperation among departments and between the central and local governments. We will support key projects by accelerating preliminary work, strengthening guarantees for project funding, land and sea use, and environmental impact assessments, and expediting project approval procedures. We will promote the rapid construction of projects and commence physical work. Thank you.

Xing Huina:

The next question will be the last due to time constraints.

Phoenix TV:

The Central Economic Work Conference proposed "expanding high-level opening up." Could you please share with us the new measures the NDRC has taken to accelerate the construction of a new system for high-level opening-up and to attract and utilize foreign investment more effectively? Thank you.

Liu Sushe:

I will answer this question. In recent years, China has made significant progress in advancing high-level opening up. A series of policies and measures have been implemented to maintain stability in foreign investment, resulting in continuous improvements in the environment for foreign investment. Despite the global downturn in cross-border investment, China maintained a historically high level of actual foreign direct investment (FDI) utilization in the first 11 months of 2023, with the number of newly established foreign-funded enterprises increased by 36.2% year-on-year, and investment attraction in the high-tech manufacturing sector continued to grow. In line with the arrangements of the Central Economic Work Conference, the NDRC, in collaboration with relevant stakeholders, will prioritize institutional openness and focus on areas such as investment, trade, finance, and innovation. Efforts will be made to build a new system for a higher-level open economy, implement policies for liberalizing and facilitating high-level investment and trade, and continue to emphasize both attracting foreign investment and promoting outbound investment.

In terms of attracting foreign investment, we will continue to work on policies and services to promote the high-quality development of utilizing foreign investment. First, we will accelerate the issuance of policies. The national version of the negative list for foreign investment access will be revised, and all restrictions on foreign investment access in the manufacturing sector will be comprehensively lifted. We will accelerate introducing and implementing comprehensive policies to attract and utilize foreign investment. Through a package of practical measures such as increasing support and guarantee policies and aligning with high-standard international economic and trade rules, we will focus on solving the difficulties and bottlenecks faced by foreign-funded enterprises. Second, we will expedite the implementation of projects. In recent years, we have actively engaged special work teams for major foreign investment projects and have successively launched seven batches of such projects. The first six batches consist of 40 projects that have attracted a total investment of $73 billion, with 23 projects fully or partially put into operation. Some of these projects are the largest overseas investment projects or production bases of the relevant foreign-funded enterprises. The seventh batch, comprising 11 projects, has a planned total investment exceeding $15 billion, covering various fields such as biomedicine, automobile manufacturing, new energy batteries, and chemical engineering. Third, we will continuously optimize services. We will coordinate and resolve issues related to national-level land use, sea use, environmental impact assessments, and energy consumption for project implementation. We will also expedite the implementation of major foreign investment projects. Additionally, we will organize a series of international industrial investment cooperation events, establish platforms for investment docking between multinational companies and localities, improve the mechanism for direct contact with foreign-funded enterprises, and promptly address concerns, meet demands, and provide services.

In terms of promoting outbound investment, we will strengthen policy communication and coordination with relevant partner countries. We will deepen cooperation in capacity building for the Belt and Road Initiative, third-party market cooperation, infrastructure connectivity, and cooperation in livelihood projects. We will guide enterprises to continuously create high-quality, landmark projects and "small and beautiful" projects based on market principles and international norms. This approach aims to realize complementary advantages, mutual benefits, and win-win outcomes that will benefit people from all countries and make greater contributions to the development and prosperity of the global economy. Thank you.

Xing Huina:

Today's press conference ends here. Thank you to the three speakers and also to all of our media friends. Goodbye, everyone.

Translated and edited by Xu Xiaoxuan, Wang Wei, Xu Kailin, Heshan, Lin Liyao, Ma Yujia, Liu Caiyi, Yuan Fang, Mi Xingang, Zhang Rui, Zhu Bochen, Zhang Tingting, Zhang Junmian, Li Huiru, 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.