. Read in Chinese
Speakers:
Mr. Xin Guobin, vice minister of industry and information technology
Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT)
Ms. Tao Qing, spokesperson of the MIIT and director general of the Bureau of Operation Monitoring and Coordination of the MIIT
Chairperson:
Xing Huina, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO
Date:
Jan. 19, 2024
Xing Huina:
Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we have invited Mr. Xin Guobin, vice minister of industry and information technology, who will brief you on the development of industry and information technology in 2023, and take your questions. We are also joined by Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT), and Ms. Tao Qing, spokesperson of the MIIT and director general of the Bureau of Operation Monitoring and Coordination of the MIIT.
Now, I'll give the floor to Mr. Xin for a brief introduction.
Xin Guobin:
Ladies and gentlemen, friends from the media, good morning. Thank you for your continued interest in and support for the development of industry and information technology. Now, I'll brief you on the sector's general situation in 2023.
The year 2023 is pivotal for China, as it is the first year of fully implementing the guiding principles of the 20th National Congress of the Communist Party of China (CPC), a year of economic recovery and development after three years of COVID-19 prevention and control, and a significant milestone year in the country's industrial development. In September, the CPC Central Committee held a national meeting on promoting new industrialization, with General Secretary Xi Jinping providing key directives. This initiative sparked nationwide mobilization and arrangement meetings, igniting a wave of new industrialization efforts across the country. Under the firm leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the MIIT, along with other departments and regions, conscientiously implemented the decisions and arrangements made by the CPC Central Committee and the State Council. The focus remained on maintaining stability while seeking progress, accelerating new industrialization and solidifying manufacturing. As a result, the industrial sector maintained an upward trend, and the information and telecommunications sector experienced accelerated growth, contributing to solid progress in high-quality development. In general, the progress in these areas can be characterized by five keywords: stability, innovation, strength, integration and enhancement.
First, by stability, we mean the stable growth momentum has been further solidified. In 2023, a series of policy measures targeted at stabilizing growth proved effective as the total value added of industrial enterprises above designated size grew by 4.6% year on year, or 1 percentage point higher than in 2022. Notably, the value added of manufacturing was up by 5% year on year. Over the past year, the industrial sector showed upward momentum while maintaining stability, with expansion across 10 major industrial provinces and 10 major industries, contributing to overall stable growth. The size of the country's manufacturing sector continued to lead globally for the 14th consecutive year.
Second, by innovation, we mean the new growth drivers were further enhanced. We continued to drive the development of a modern industrial system through technological innovation. We built 27 national manufacturing innovation centers, two manufacturing innovation centers through national and local partnerships, and accelerated the creation of 45 national-level advanced manufacturing clusters. We focused on strengthening the industries we excel in, such as the three new growth drivers of export, namely solar batteries, lithium-ion batteries and electric vehicles, which collectively surpassed an export value of over 1 trillion yuan ($139 billion) for the first time. The shipbuilding industry has continued to dominate the global market, maintaining the largest global share for 14 consecutive years. We have also nurtured other new growth drivers of the economy, such as emerging industries like new materials and robotics, which experienced rapid growth. We have also accelerated the commercialization of major technological breakthroughs. This includes significant advancements in fields like machine tools and key software technologies. Moreover, there have been major achievements in the production and application of large passenger airlines and high-end medical equipment.
Third, by strength, we mean the strong industrial foundation has been further solidified. We have accelerated the technological transformation and upgrading of traditional industries, intensified the promotion of intelligent manufacturing, and established 62 "lighthouse factories," accounting for 40% of the global total. We have built 421 national-level intelligent manufacturing demonstration factories and over 10,000 provincial-level digital workshops and smart factories. We have steadfastly promoted green and low-carbon transformation, with green emerging industries gradually growing stronger. The efficiency of comprehensive utilization of industrial resources has further improved, with the annual utilization of bulk industrial solid waste expected to exceed 2.2 billion metric tons. We continue to enhance the resilience and security of industrial and supply chains, coordinating efforts to address weaknesses and strengthen foundations. Industries such as electronics and software have shown strong resilience in their development.
Fourth, the trend of digital integration has further accelerated. We have vigorously promoted core industries of the digital economy. In 2023, the annual telecom service revenue grew by 6.2% year on year. The electronic information manufacturing industry has stabilized, the software industry has grown in terms of both volume and efficiency, and the internet industry has steadily recovered. Network infrastructure has been continuously strengthened, with service capabilities being continuously upgraded, and our total computing power ranks second globally. The integration of digital and physical systems has been deeply implemented, with 5G applications integrated into 71 of the 97 categories of the national economy, and the industrial internet covering all 41 industrial categories. Capabilities for ensuring network and data security have been continuously enhanced.
Fifth, by enhancement, we mean the business environment was further improved. We have deeply implemented 31 policy measures for the private sector, stimulating the vitality of various types of business entities. In collaboration with relevant departments, we have continuously worked to reduce the burden on enterprises. In the first 11 months of 2023, newly implemented tax cuts, fee reductions, refunds and deferred payments amounted to 1.8 trillion yuan. We have advanced the integration of industry and finance, with the national industry and finance cooperation platform providing up to 712 billion yuan in financing for enterprises. We have focused on supporting the growth of small and medium-sized enterprises (SMEs), cumulatively nurturing 103,000 innovative SMEs that use special and sophisticated technologies to produce novel and unique products, including 12,000 "little giant" enterprises with high growth potential. We have extensively listened to the opinions and suggestions of enterprises, established and improved a regular communication mechanism for manufacturing enterprises, and timely addressed and resolved critical issues.
In 2024, the industrial sector still faces a severe and complex internal and external environment. However, with a complete industrial system, a vast market scale, a well-developed information infrastructure as well as the strong momentum gathered for industrial development following the national meeting on promoting new industrialization, the long-term positive trend of China's industrial sector will not change. We will earnestly implement the arrangements of the Central Economic Work Conference and the national meeting on promoting new industrialization, resolutely fulfill the key task of achieving new industrialization, consolidate and reinforce the positive trend of the industrial sector, promote high-quality development in the information and telecommunications industry, and provide a solid material and technological foundation for building China into a great modern socialist country in all respects and advance the great rejuvenation of the Chinese nation on all fronts by pursuing Chinese modernization.
That concludes my introduction. Now, my colleagues and I are willing to answer your questions. Thank you.
Xing Huina:
Thank you. The floor is now open for questions. Please identify the media outlet you represent before raising your questions.
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CCTV:
As Mr. Xin just mentioned, in 2023, the industrial economy witnessed the momentum of recovery, and the information and communications sector achieved a smooth and rapid growth. Please give an overview of the development of the industrial sector and the information and communications sector in 2023. Thank you.
Xin Guobin:
Thank you. 2023 has been an extraordinary year for China. The MIIT earnestly implemented the spirit of the Central Economic Work Conference and the national meeting on pushing forward new industrialization. In accordance with the arrangements and requirements of the CPC Central Committee and the State Council, we advanced our work while maintaining stability. The industrial economy steadily recovered despite fluctuations, showing greater development resilience. The five most prominent aspects are as follows:
First, industrial production was stabilized and accelerated. In 2023, the added value of industrial enterprises above designated size grew 4.6% year on year. Key sectors showed an overall improvement in production. Out of the 41 major industrial categories, 28 maintained growth. Ten key sectors stabilized fundamentals and realized an average growth of more than 5%, higher than the national average growth of added value of industrial enterprises above designated size, providing strong support for the overall improvement of the industrial economy. Industries, such as electrical machinery and equipment and automobiles, realized double-digit growth in production, all surpassing 10%. The added value of industrial enterprises above designated size in the auto sector rose 13%. Traditional industries, such as steel, nonferrous metals, and petrochemicals, picked up in terms of speed of recovery. The electronics industry bottomed out and realized a 3.4% annual growth, which wasn't easy.
Second, the industrial economy steadily recovered in most provinces. All regions paid great attention to the development of manufacturing. Guangdong promoted manufacturing as the backbone of development. Shandong prioritized the industrial economy. Most provinces saw year-on-year growth in industrial added value, with the proportion of provinces seeing a growth nearly 20% higher than in 2022. Ten major industrial provinces played a stronger leading role, and all realized year-on-year growth in production. In eight of the 10 major industrial provinces, the growth rate of added value of industrial enterprises above designated size was higher than the national growth rate. Provinces such as Jiangsu, Shandong, and Anhui saw growth of more than 7%.
Third, the performance of enterprises steadily recovered. As of the end of November 2023, the proportion of industrial enterprises above designated size suffering losses continued to fall for eight straight months starting April; the growth rate of operating revenue of industrial enterprises above designated size rose for five consecutive months; and the profits of industrial enterprises above designated size realized growth for four months in a row starting August. This provided a strong support for enterprises to expand investment in innovation and realize reproduction.
Fourth, industrial investment was stabilized and progress was made. Industrial fixed assets investment maintained growth, up 9% year on year, while China's total investment in fixed assets grew by 3%. The growth of investment in manufacturing has accelerated since August 2023. Investment in industries such as automobile, electrical machinery and equipment, chemical, and nonferrous metals, saw two-digit growth, all surpassing 10%. These investments will boost future development – today's investment will yield benefits tomorrow.
Fifth, market expectations were stabilized and improved. As of the end of November 2023, the number of industrial enterprises above designated size reached 483,000, 32,000 more than that at the end of 2022. Business entities continued to expand and thrive. The manufacturing PMI (an index tracking production and operating activities) rose for three straight months since October 2023 and has always remained higher than 50-point mark throughout the year, showing manufacturers' steadily recovered confidence in development.
Meanwhile, the information and communications sector also developed rapidly. In 2023, the telecommunication sector saw revenue up 6.2% year on year and an increased business volume of 16.8%, offering major support to empower economic growth.
Network infrastructure continued to improve. A total of 3.377 million 5G base stations have been built. The number of gigabit network ports reached 23.02 million. The foundation of the Internet of Things (IoT) has been increasingly solidified. The mobile IoT end users accounted for 57.5% of all mobile network terminal connections. Tech industries developed innovatively. Customized 5G base stations and lightweight 5G technologies have been commercialized. We launched the world's first smartphone with a satellite calling function and our capacity for scientific and technological innovation in 6G, quantum communication, and artificial intelligence has been built up rapidly.
The empowering effect became increasingly prominent. 5G technology has been applied in 71 major categories of the national economy. More than 10,000 programs saw the integration of 5G and the industrial internet. The pilot application in key areas such as culture and tourism, medical care, and education helped revive and boost consumption.
Inclusive services were deepened. More than 80% of administrative villages in China have gained 5G access. A total of 2,577 websites and applications frequented by the elderly and the people with disabilities were renovated and upgraded. We intercepted 54 billion harassment calls during the year and publicly disclosed 1,861 illegal applications to continue to protect users' rights and interests.
The ability to ensure cyber and data security was further enhanced. We continued to improve the capability to prevent major risks threatening the basic telecommunications network. The protection of industries' key infrastructure was enhanced significantly.
In 2024, the MIIT will take Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as the guideline, prioritize high-quality development, actively address internal and external risks and challenges, further enhance the momentum of recovery and improvement of the industrial economy, and further promote the high-quality development of the industrial sector and the communications sector.
That's all I have to provide. Thank you.
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China Electronics News:
We have noticed that China's manufacturing sector is quite keen on digital transformation. What has the MIIT done to support this transformation? What are your considerations for the future?
Tao Qing:
Thank you for your questions. Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has attached high importance to the digital transformation of the manufacturing sector and made a series of instructions. The MIIT has conscientiously and solidly advanced all the major tasks, promoting the quick and high-quality digital transformation of the manufacturing industry. First, the digital infrastructure has been built to form strong support. We have built the world's largest optic fiber and mobile broadband network and had the world's second-largest scale in terms of computing power. The number of influential industrial internet platforms surpassed 340. Second, digital technologies and industrial supplies have been hugely improved. Technological innovation in cloud computing, big data, and other areas led the world. Industrial robots, industrial software, and other digital products and services continued to improve. More than 4,400 artificial intelligence enterprises emerged. System integration in steel, petrochemical, and lithium-ion battery sectors reached an internationally advanced level. Breakthroughs have been made in integrated chassis die-casting, precision manufacturing of battery cells, and flexible assembly of photovoltaic components. A comprehensive digital technological and industrial system started to take shape. Third, major sectors transformed at faster pace. As of the end of December 2023, we have incubated 421 national demonstration factories and more than 10,000 digital workshops and smart factories at provincial level. The demonstration factories of large aircraft, new energy vehicles, and high-speed EMUs shortened the research and manufacturing time by nearly 30% on average and improved production efficiency by around 30%. Intrinsic safety of demonstration factories in the steel, building material, and civil explosive sectors hugely improved, reducing carbon emissions by around 12%. The national service platform for the integration of informatization and industrialization served 183,000 industrial enterprises. The use of digital R&D and design tools in these enterprises reached 79.6%, and the numerical control rate of key production processes reached 62.2%. Fourth, the policy environment continued to improve. Different localities and government departments enhanced planning and policy guidance, innovated mechanisms, and provided stronger support, achieving many successes and creating models for others to follow.
Accelerating the digital transformation of manufacturing is imperative and in line with the trend of the new industrial revolution, enhancing the level of industrial modernization and building a modernized industrial system. Next, the MIIT will adhere to the deep integration of information technology and new industrialization as the main focus and prioritize the following four aspects:
First is to strengthen the foundation and accelerate the unified deployment and construction of bottom-level standard agreements, data flow rules, network infrastructure, and other key points and obstacles. Second is integrated advancement, constructing a work system that collaboratively promotes digital assessment, scenario cultivation, transformation demonstration, and widespread application. Third is the linkage of supply and demand, understanding enterprise transformation needs and barriers and adopting various methods, including opening scenarios on the demand side, joint tackling of challenges with a supply-demand competition mechanism, and nurturing high-quality solutions and service providers to enhance supply-demand matching, and improving the efficiency of digital transformation. Fourth is to implement targeted measures, cultivate specialized service provider teams in specific fields, adhere to enterprise-specific strategies, encourage enterprises with strong digital foundations to upgrade towards intelligence and accelerate the digitalization of key business processes in various industries. Thank you!
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ThePaper.cn:
Last year, China's information and communication industry experienced steady and continuous growth, leading globally in 5G innovation. Could you please provide information on the current status and future focus of 5G infrastructure construction and applications in China?
Zhao Zhiguo:
Thank you for your question. The MIIT has been implementing the decisions and arrangements of the CPC Central Committee and the State Council, making solid progress in the innovative development of China's 5G. As of the end of 2023, the total number of 5G base stations in China reached 3.377 million, with a further consolidation of network infrastructure and continuous enrichment of internet applications. In general, the following four characteristics can be summarized.
First is innovation. The innovative capabilities of the 5G technology industry in terms of technical standards, network equipment, terminal devices, etc., have continuously strengthened. Lightweight 5G core networks and customized base stations have been commercially deployed. A batch of new terminal devices, such as 5G industrial gateways and inspection robots, have been successfully developed. Our global share of standard essential patent declarations for 5G exceeds 42%, maintaining a leading position worldwide.
Second is integration. The breadth and depth of integrated applications continue to expand, with 5G industrial applications integrated into 71 categories of the national economy, over 94,000 application cases, and more than 29,000 5G industry virtual private networks. 5G applications have been extensively promoted in industries such as manufacturing, mining, power, ports, and medicine. For example, in the medical industry, 5G applications have extended from remote diagnosis to remote precision treatment. In the power sector, 5G applications have expanded from unmanned inspections in the "transmission" stage to cover the entire process of "generation, transmission, transformation, distribution, and utilization."
Third is green. 5G networks are accelerating towards intensive, efficient, green, and low-carbon development. Existing station resources, public resources, and social pole and tower resources were fully utilized to build 5G base stations. The bidirectional sharing of communication pole and tower resources and social pole and tower resources was actively promoted. Currently, over 90% of base stations achieve co-construction and sharing. The energy consumption of 5G base stations continues to decrease, with a single-site energy consumption reduction of over 20% compared to the initial commercial stage.
Fourth is value creation. The continuous growth of 5G mobile phone users and rapid increase in 5G traffic consumption have promoted the vigorous development of emerging businesses such as glasses-free 3D and cloud phones, effectively expanding the development space of the mobile communication market. As of the end of last year, there were 805 million 5G mobile phone users, and 5G network access traffic accounted for 47%. According to research institutions, it is estimated that in 2023, 5G directly drove a total economic output of 1.86 trillion yuan, a 29% increase from 2022.
Next, the MIIT will work together with various parties in production, academia, research, and application, strengthen inter-departmental collaboration, continuously promote the large-scale development of 5G applications, and achieve new results to provide strong support for promoting high-quality economic and social development. First is to strengthen policy guidance. We will study and introduce policies for the continued development of 5G applications, fully play the role of policy guidance, and promote the high-quality development of the entire 5G industry chain. Second is to deepen network coverage. We will accelerate 5G network construction, promote deep coverage of mobile networks in key locations, advance the construction of the 5G industry's virtual private networks, and provide network support for industry transformation and development. Third is to accelerate application expansion. We will focus on key industry application scenarios, set up demonstration benchmarks, strengthen promotion and application, and promote the large-scale development of 5G applications. Fourth is to enhance innovation capabilities. We will strengthen the construction of the 5G integration application standard system, continuously promote technological evolution and product development of 5G-A and lightweight 5G, etc. We will accelerate the research of 6G technology, conduct technical experiments, strengthen technological reserves, and deepen exchanges and cooperation. Thank you.
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Cover News:
In 2023, China's automotive industry made significant progress. Could you please introduce the relevant situation? What measures will be taken this year to promote the high-quality development of the industry? Thank you.
Xin Guobin:
The automobile industry is a crucial pillar industry in China, and its development in recent years has attracted attention both domestically and internationally. Last year witnessed numerous innovative products, especially some innovative products in new energy, which became trending topics on social media. With the collective attention of society, the automotive industry achieved remarkable highlights last year, presenting an excellent report card.
First, the production and sales volume of automobiles exceeded 30 million units for the first time. Last year's annual production and sales reached 30.161 million and 30.094 million units, with year-on-year growth of 11.6% and 12%, respectively, setting a historical record. While production reached 29 million units in 2017 and experienced a continuous decline in the following years, last year we surpassed the 30 million mark, maintaining the global leading position for 15 consecutive years. After breaking through 10 million units in 2009, it took us three to four years to exceed 20 million units. After more than a decade of development, breaking through to 30 million units indicates a significant achievement. The retail sales of automobiles reached 4.86 trillion yuan, accounting for 10.3% of the total retail sales of consumer goods. The added value of the automobile manufacturing industry above a designated scale increased by 13% year on year, making a significant contribution to the stable growth of China's economy.
Second, new energy vehicles continued to lead globally. In 2023, the production and sales of new energy vehicles reached 9.587 million and 9.495 million units, respectively, with year-on-year growth of 35.8% and 37.9%. The sales volume of new energy vehicles reached 31.6% of the total new vehicle sales, demonstrating a high penetration rate. Semi-solid-state batteries with an energy density of 360 watt-hours per kilogram were applied to vehicles last year, and this new product was exhibited to the public at the International Automobile and Manufacturing Technology Exhibition in April. Vehicle-grade large-scale computing chips significantly improved their performance, integrating various advanced technologies and becoming highly popular products at major auto shows such as the International Automobile and Manufacturing Technology Exhibition held in April last year in Shanghai, and the World New Energy Vehicle Conference held in Munich, Germany in September. They have received a positive response in Europe and in Germany. Many consumers, as well as many car companies and research institutions, paid close attention. At the exhibition, some professional technicians even spent a long time studying underneath the vehicles and relayed that China's innovative products are indeed advancing rapidly, with a high level of intelligence and good quality. Overall, they gave very positive evaluations.
Third, China's exports have made further advancements. In the whole of last year, total exports of complete vehicles reached 4.91 million units, a year-on-year increase of 57.9%, with the prospect of leaping to the top spot globally for the first time. Among these, the export of new energy vehicles (NEVs) amounted to 1.203 million units, marking a year-on-year growth of 77.6%, thus offering global consumers a diverse range of consumption choices. The export of batteries reached 127.4 gigawatt-hours, a year-on-year increase of 87.1%. The "new three items" have added a new touch to China's manufacturing industry, boosting our confidence and burnishing China's image.
Apart from these accomplishments, it is essential to acknowledge various unfavorable factors stemming from the external environment. These include sluggish consumption demands and the misuse of trade remedy measures as protectionist actions in some countries and regions. In terms of the industry, this pattern has become a global consensus, although there are areas that still require coordination in the process. Many NEV companies, especially those primarily focused on the domestic market, have yet to achieve profitability. In terms of product sales, there are also some shortcomings in areas such as automotive chips. In addition, in the development of intelligent connected vehicles, the collaboration between vehicles and the road is not yet comprehensive. In the past, there were some traditional approaches that aimed to make the vehicle side an all-encompassing solution to every issue. China has proposed the implementation of a strategy for collaborative development between vehicles, roads, and the cloud: Issues that can be addressed by the vehicle are handled by the vehicle; those that can be resolved by the road infrastructure are addressed at the road level; and problems suitable for cloud solutions are tackled in the cloud. At the same time, there are instances of disorderly competitive practices, where certain regions and companies are initiating projects for NEVs without proper planning, leading to redundant constructions. These issues demand our highest attention, and decisive measures must be implemented to address them.
Xin Guobin:
It's fair to say that the development of NEVs last year was satisfactory. The sustainability of this momentum is a matter of great concern for everyone and holds significant importance for us. In the beginning of the year, we collaborated with industry institutions, research agencies, and industry associations to conduct thorough research, delving into the current development environment, constraints, and favorable factors for further development. Currently, the research findings from industry associations are optimistic. They anticipate that by 2024, there will be stable growth in production and sales within China's automotive industry, with NEVs maintaining a positive development trend. The current estimate for the overall scale suggests that it is expected to reach 31 million units in 2024, with a modest year-on-year increase of around 3%. The production and sales of NEVs are projected to reach approximately 11.5 million units, experiencing a growth of roughly 20%. Certainly, these data are projections made by relevant enterprises and research institutions, and we will conduct further validation of the findings. In general, I consider this assessment to be trustworthy.
For the next step, we will earnestly implement the arrangements made by the Central Economic Work Conference and the National Conference on Promoting the New Type of Industrialization. We will collaborate with relevant departments to further enhance macroeconomic guidance, strengthen industry management, and promote the high-quality development of the automotive industry.
First, we will implement favorable policies like reducing vehicle purchase taxes, thoroughly conduct pilot projects of electrification in public transport vehicles, and launch NEV campaigns in rural areas. These efforts aim to actively spur the consumption of NEVs and ensure the stable operation of the industry. Last year, we conducted six rounds of NEV campaigns in rural areas, tapping the market potential in these areas and promoting the development of charging and swapping infrastructure, further enhancing the consumption experience of rural consumers.
Second, we will support enterprises in collaborative innovation and intensify efforts in key technologies such as automotive chips, solid-state batteries, and advanced autonomous driving, further enhancing the market competitiveness of products.
Third, we will advance the implementation of pilot projects for the access and "vehicle-road-cloud integration" of intelligent connected vehicles. We will accelerate the construction of infrastructure, such as roadside perception and cloud control for connected vehicles; further improve the standard systems for on-vehicle, roadside, and network aspects; and continue to promote the commercial application of intelligent connected vehicles. Here's an invitation to all media friends: I recommend visiting Yizhuang in Beijing. As of now, the results of the vehicle-road-cloud collaboration experiments in Yizhuang are highly promising. The country has been actively advancing the comprehensive development of vehicle-road-cloud collaboration through the establishment of over 30 such pilot demonstration zones nationwide.
Fourth, we will further strengthen the coordinated layout of industrial development, guard against and resolve the risk of overcapacity, and maintain a fair and competitive market order. The automotive industry is a globalized sector, and in the development process this year, we will continue to promote internationalization and advocate for collaborative innovation and global development. We will work towards eliminating various forms of trade protectionist policies, creating a favorable international and domestic environment for industry development.
That's all from me. Thank you!
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Xinhua News Agency:
Over recent years, the MIIT has actively promoted the empowerment of industrial digitization through the industrial internet. Could you please provide an overview of the current achievements in the innovative development of China's industrial internet? Additionally, what considerations are being made for the next step?
Zhao Zhiguo:
Thank you for your questions. Currently, China's industrial internet has entered a new phase featuring substantial and large-scale development. Here are three sets of data: in terms of industrial scale, it is expected that the core industry scale will reach 1.35 trillion yuan by 2023; in terms of coverage, industrial internet has integrated into 49 major categories of the national economy, covering all major industrial categories; in terms of development momentum, the "Hundred Cities, Thousand Parks Initiative" for industrial internet is thriving nationwide, facilitating the connection of over 10,000 enterprises in supply and demand, and driving investments exceeding 170 billion yuan. These accomplishments can be summarized in the following four aspects.
First, significant progress has been made in developing new infrastructure that integrates the digital economy with the real economy. The identification resolution system has been comprehensively established, with the "5+2" top-level nodes operating stably, serving over 400,000 enterprises. There are over 340 industrial internet platforms with a certain level of influence, and the number of connected industrial devices exceeds 96 million sets. Meanwhile, a collaborative and efficient security system, integrating technology and management, has been established.
Second, further advancements have been made in achieving new breakthroughs in key technologies. We have accelerated the integration of information technology (IT), communication technology (CT), control technology (OT), and digital technology (DT), achieving notable breakthroughs in industrial-grade 5G chips, modules, and gateways. The cost of industrial-grade 5G modules has seen a reduction of 90% compared to the initial commercial stage, laying a solid foundation for widespread applications. In total, three international standards and 90 national ones have been released.
Third, the "new space" for its application is increasingly expanding. We have created the Chinese brand for 5G factories, releasing the directory of the first batch of 300 5G factories, with a total investment of nearly 10 billion yuan. The industrial internet has permeated various facets of the manufacturing sector, including research, production, supply, sales and services. It supports the development of national major projects, serves the green and low-carbon development, promotes consumption upgrades, and ensures safe production. This has effectively facilitated smart-technology upgrades, digital transformation and enterprise network connectivity.
Fourth, the "new ecosystem" of win-win cooperation is growing vigorously. Various types of market entities are advancing together. There are more than 2,500 member units in the Alliance of Industrial Internet, playing a crucial role in technological innovation, talent training and international cooperation. It has become the world's largest industrial ecosystem carrier in this field. The number of listed industrial internet companies has continued to grow for seven consecutive years, reaching a total of 300.
In the next step, we will collaborate with all parties to fully implement the guiding principles of the 20th CPC National Congress, act upon the decisions and arrangements of the CPC Central Committee and the State Council, and make every effort to promote the high-quality development and widespread application of the industrial internet. First, we will enhance policy guidance by issuing guidelines to promote the high-quality development of the industrial internet. We will facilitate "connectivity" of industrial internet identity, and issue new application guidelines for various industries within the industrial internet. Additionally, we will further improve the policy environment for industrial internet development and promote its extensive application. Second, we will expedite innovation-driven development, diligently implementing the innovative development project of the industrial internet. We aim to achieve breakthroughs in key technologies, accelerate the industrial application of various research and development achievements, and formulate and implement a new set of national, industry and group standards to strengthen the technological and industrial foundation for developing the industrial internet. Third, we will accelerate the cultivation of the industrial ecosystem and initiate a new round of the campaign to promote the application of the industrial internet in 1,000 industrial parks in 100 cities. We will select a group of high-level national "5G+ industrial internet" integrated application pilot zones, advancing the application of relevant policies, technologies, standards, products, and services in industrial parks, bases, and clusters. This will provide solid support for promoting the integration of digital technologies with the real economy and advancing new industrialization. Thank you.
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China Daily:
New industrialization is characterized by green and low-carbon production. What achievements have been made in pursuing green and low-carbon production since last year? What are the key tasks and measures for the next stage? Thank you.
Tao Qing:
In 2023, the MIIT faithfully implemented Xi Jinping Thought on Ecological Civilization, made efforts to promote the transition to green and low-carbon industrial development in accordance with the arrangements of the national meeting on promoting new industrialization, and achieved positive results.
First, the industrial structure has constantly improved. The green and low-carbon transition and upgrading of industries are accelerating, leading to the further elimination of outdated production capacity in industries such as steel, electrolytic aluminum, petrochemicals, and building materials. A total of 78 steel enterprises have completed the full-process ultra-low emission transformation of their production capacity, totaling 390 million metric tons of crude steel. The intensity of key pollutants and carbon dioxide emissions in key industries continues to decline.
Second, green growth drivers have been further unlocked. We have continued to promote the building of a green manufacturing system, enhancing efforts to cultivate advanced models. By the end of 2023, a total of 5,095 green factories had been established at the national level, contributing to over 17% of the total output value of the manufacturing industry. A 16-megawatt offshore wind turbine with the world's largest single-unit generating capacity was successfully connected to the grid and commenced power generation. The production of key components in the photovoltaic industry has held the world's top position for several consecutive years. Coastal and inland river vessels are accelerating towards green and intelligent development. The country's first 10,000-ton-level green hydrogen demonstration project was completed and put into operation. The total output value of the environmental protection equipment manufacturing sector is expected to exceed 970 billion yuan.
Third, energy resource utilization is becoming more efficient. Energy efficiency in key energy-consuming industries continues to improve, with over 30% of production capacity reaching the energy efficiency benchmark level in industries such as ethylene. The annual reuse rate of industrial water in enterprises above the designated size is expected to exceed 93%. The energy efficiency of information infrastructure also continues to improve, with a total of 196 green data centers developed by the end of 2023.
Fourth, the comprehensive utilization system of industrial resources has further improved. Throughout the year, 239 enterprises specializing in recycling renewable resources, such as scrap steel, wastepaper, and used power batteries from new energy vehicles, were selected. The comprehensive utilization of used power batteries from new energy vehicles reached 225,000 metric tons, essentially achieving full recycling. The home appliance industry has attained a recycling rate of over 80% for products like refrigerators, washing machines, and air conditioners through easy-to-recycle and detachable designs.
In the next step, the MIIT will continue to promote the implementation of the plan for the green development of industrial sectors during the 14th Five-Year Plan period (2021-2025). We will consistently strengthen the "green" aspects of new industrialization and steadfastly pursue eco-friendly development.
First, we will actively and prudently promote carbon emissions reduction in the industrial sector. We will coordinate efforts to reach the carbon peak in the industrial sector and other key industries. We will also initiate pilot projects for digital carbon management within the industrial sector. The plan for 2024 is to formulate carbon footprint accounting rules and standards for approximately 100 key products. We will vigorously develop green and low-carbon industries like hydrogen energy and energy storage. Additionally, we will elevate the requirements for energy consumption and environmental protection concerning outdated production capacities and accelerate coordinated efforts to reduce pollution and carbon emissions.
Second, we will strive to establish a green manufacturing and service system. We will implement the green manufacturing project and aim to nurture 1,000 national-level green factories by 2024. We will enhance the green manufacturing and service system and introduce the "enterprise green code" on a pilot basis. We will fully leverage the role of the national industry-finance cooperation platform to actively create green consumption scenarios in areas such as new energy vehicles and green home appliances.
Third, we will focus on improving industrial energy and water efficiency. We will promote energy efficiency improvements in key industries and key energy-consuming equipment, such as motors and transformers. Additionally, we will expedite the construction of industrial green microgrids in key industries and sectors. We will introduce a catalog of recommended energy and water-saving technologies and equipment for the industrial sector in 2024 and continue to foster leading enterprises in energy and water efficiency.
Fourth, we will comprehensively promote the efficient utilization of resources. We will accelerate the establishment of a waste recycling system and encourage regions with favorable conditions to create "zero-waste industrial parks" and "zero-waste enterprises." We will promote the well-regulated development of the comprehensive utilization industry of renewable resources and strive to achieve a steady increase in the comprehensive utilization of major types of renewable resources. We will improve the utilization system for the solid waste of emerging industries and aim to achieve an annual comprehensive utilization of over 260,000 metric tons of waste power batteries. Thank you.
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Phoenix TV:
General Secretary Xi Jinping emphasized once again in his important speech at the opening of a study session on boosting the high-quality development of the financial sector, attended by principal officials at the provincial and ministerial levels, that the fundamental principle that finance serves the real economy must be upheld. Can you please provide a detailed introduction to the relevant work of the MIIT in promoting the positive cycle of "technology-industry-finance"? Thank you.
Xin Guobin:
Thank you for your question. The central financial work conference was held at the end of last year. General Secretary Xi Jinping attended the conference and delivered an important speech, emphasizing the need to adhere to the fundamental principle of providing financial support for the real economy. Over the past year, the MIIT has taken the initiative and actively collaborated with the Ministry of Finance, the People's Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission to carry out exploratory work. This has further guided financial resources to better support major strategies, key areas, and weak links in the manufacturing industry. At present, we have engaged in strategic cooperation with 22 financial institutions nationwide, forming a preliminary pattern of industry and finance cooperation featuring departmental collaboration, vertical linkage between the central and local governments, and policy coordination and cooperation, with extensive participation from financial institutions. This collaboration has yielded positive results, with the outstanding medium- and long-term loans to the manufacturing sector growing around 30% for three consecutive years. And that was not an easy task. The scale of financing assisted by the national industry-finance cooperation platform increased 68% year on year and is still expanding.
To deepen the cooperation between industry and finance and support the industrial application of scientific and technological advances, we have led the implementation of a special pilot project called "Integration of Science, Technology, Industry, and Finance." We are actively exploring an integrated resource allocation path where "enterprises pose questions, the market provides answers, capital selects projects, and local governments assume responsibilities." Relying on the mechanism for evaluation of key and core technologies and cultivation of listed companies — jointly established with securities exchanges — as well as local policy support, we guide social capital to invest early, in small amounts, and in key and core technologies. This creates a sustained and stable mechanism for innovative investment to address weaknesses, enhance strengths, and strengthen foundational components. During the project-oriented stage, R&D needs are proposed by leading or competitive enterprises in the industrial chain, and an open competition mechanism is introduced to select the best candidates to undertake such projects. With these R&D projects included in the scope of key and core technologies, we encourage investment institutions to support them and local governments to provide further preferential policies .
In the industrial production and market application phase, corresponding policies such as preferential loans, industrial investment, and insurance compensation are implemented to help innovative achievements rapidly tap the market, facilitating market validation and technological iteration. Meanwhile, qualified enterprises are recommended for inclusion in the incubation system for listing. We will strengthen guidance on their expectations for listing, and encourage them to leverage the capital market to grow larger, better, and stronger. Last year, a multi-directional docking event for industry and finance cooperation, among industries, and for industrial and urban integration was held in Xiongan New Area. In four key sectors — aerospace information, artificial intelligence and robotics, biomedicine, and advanced new materials — a total of 58 early-stage projects involving core technologies participated in roadshows. Of these, 55 projects signed cooperation intention agreements with investment institutions or local entities, achieving a financing amount of 11 billion yuan. We pushed forward the establishment of the Beijing-Tianjin-Hebei Enterprise Incubator for the STAR Market in Xiongan, aiming to provide services from the very beginning to cultivate innovative high-tech enterprises that could list on the STAR Market. These are some of the innovative explorations in promoting integration.
This year, we will continue to deepen the cooperation between industry and finance and strengthen our collaboration with financial regulatory authorities. We plan to expand the scope of the "Integration of Science, Technology, Industry, and Finance" special project, and organize special roadshows for the transformation of scientific and technological achievements in universities and industrial parks. We will continue to establish the evaluation standards for key and core technologies in segmented fields and carry out evaluation work in this regard. Focusing on areas such as biomanufacturing, artificial intelligence, inland waterway vessels, and the low-altitude economy, we will explore early-stage projects involving core technologies, and guide financial, social, and industrial capital to continue investing. We will continue to collaborate with securities exchanges to promote the incubation of listed enterprises. We will make efforts to ensure smooth channels for capital exit and promote a further positive cycle of "technology-industry-finance," in a bid to advance the construction of a modern industrial system.
That's all I have to say. Thank you!
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People's Posts and Telecommunications News:
Information and communication services touch every household and are closely related to people's daily lives. Could you please elaborate on the measures the MIIT took to better provide information and communication services for the public in 2023? What work will be carried out in the next step? Thank you.
Zhao Zhiguo:
Thank you for your question. The MIIT has taken practical measures to upgrade information and communication services, continuously empowering economic and social development and improving people's well-being.
Since last year, we have expanded internet coverage in more areas and in a better way, with 5G and gigabit optical networks continuously improved. We have realized "gigabit connectivity in all cities, 5G connectivity in all counties, and broadband connectivity in all villages." We initiated the implementation of a special action to upgrade internet services and improve the quality of mobile networks. We accelerated broadband development in border areas, helping to enrich locals and ensure stability there. Our services have also improved significantly. We upgraded telecommunications services, with over 80% of such services processed online and over 20 million users receiving video customer services. We issued and implemented the "Work Plan for Promoting the High-Quality Development of Digital Technology for Older Adults." Digital technology has been better applied for the convenience of older adults, with 2,577 websites and apps completing updates and barrier-free transformations to become more accessible to them. The "one-click call to human customer service" feature has served over 300 million older users. Communication guarantees have become more robust. We guaranteed communication services for major events such as the Chengdu Universiade and the Hangzhou Asian Games, as well as emergencies including the response to the flood disaster in the Beijing-Tianjin-Hebei region, and the Jishishan earthquake in Gansu. We have built a solid "lifeline, security line, and command line" for communication during major events and emergencies. We have addressed problems in a substantial way and achieved solid results. With a focus on strengthening the full-process and whole-chain governance of apps, we saw an increase of 20% in the pass rate of qualified apps on app stores. We have carried out in-depth governance of unsolicited electronic information, shutting down 4,212 illegal SMS port numbers, and the "call blocking" anti-harassment service has reached 620 million users. We continue to advance the prevention and control of telecom network fraud, intercepting nearly 5 billion calls and messages involving fraud and verifying and handling over 200 million high-risk internet accounts related to fraud.
Building a comprehensive information and communication service system that benefits the public is an unwavering pursuit of the entire industry and an important livelihood project. In the next step, our work will focus on the following aspects.
First, we must pay equal attention to supply and better experiences and deliver more digital benefits for the people. We need to optimize and upgrade new information infrastructures and applications, enhance universal telecommunications services, and strengthen network operation security and emergency communication support. We will accelerate the in-depth integration of digital technology with residents' consumption scenarios, and cultivate and promote new digital consumption formats and applications such as smart home services, digital health, and smart life, enriching people's digital lives. We will carry out the 2.0 upgrade of digital technology for the convenience of senior citizens, launch a group of new functions for the elderly and persons with disabilities, and promote the sharing of digital technology for senior citizens.
Second, we must adhere to equal emphasis on regulation and guidance to promote the healthy development of the industry. We will carry out in-depth campaigns to improve mobile internet application services, promote close collaboration between upstream and downstream industries such as development and operation, application distribution, and smart terminals, and create a healthy and orderly industry ecosystem. We will formulate compliance guidelines for telecommunications and internet services, release a series of standards and specifications such as personal information protection, and guide enterprises to protect user rights and interests throughout the entire production and operation process and each link. We will organize the selection of outstanding cases that are well received by users, carry out key internet service quality assessments, set fine examples, stimulate positive energy in the industry, and better meet the needs of users in all aspects.
Third, we need to insist on equal emphasis on good and joint governance to improve the effectiveness of comprehensive governance. We will accelerate the construction of public service platforms for mobile internet applications and actively use innovative technologies such as big data, artificial intelligence, and large language models to boost agile, precise, and efficient supervision. We will carry out in-depth rectification of unsolicited electronic messages and continuously improve the blocking of unwanted calls and provision of anti-harassment services for the protection of users' peaceful lives. We will strengthen the prevention and control of telecom and cyber fraud, enhance basic management such as the real-name registration, continue to deepen the anti-fraud technology system, and effectively safeguard the safety of people's property. We will intensify collaboration with relevant departments, social sectors, and relevant industry parties to build and improve a co-governance pattern of government regulation, corporate self-discipline, and public supervision. Thank you.
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CMG Voice of China：
We have noticed that small and medium-sized enterprises (SMEs) are an important pillar for the resilience of China's economic development and are related to the overall economic and social development framework. What work has been done to optimize services for enterprises? What are the next specific measures?
Tao Qing:
Thank you for your questions. The high-quality development of SMEs is inseparable from high-quality and efficient services. In 2023, the MIIT insisted on paying equal attention to management and services, as well as assistance and development, and strived to improve the service system. In November, the MIIT issued the Guiding Opinions on Improving the Public Service System for Small and Medium-Sized Enterprises to further promote the incremental expansion, quality, and efficiency of public services for SMEs. We organized and carried out theme activities such as "Together Benefiting Enterprises," and "SMEs Service Month." Throughout the year, service agencies served a total of 12.47 million SMEs.
First, we served the innovative development of enterprises. We organized more than 3,000 "National Tours of Digital Empowerment, Scientific and Technological Achievements Intellectualization, and Quality Standards Brand Assignment to Small and Medium-sized Enterprises" activities, served more than 1.4 million enterprises, and promoted the transformation of technological achievements worth 29.06 billion yuan. The first solicitation and selection activity of "Famous Teachers and Excellent Courses" was launched to provide policies, technology, and management to SMEs.
Second, we served enterprises to expand their markets. We organized more than 700 integration activities titled "100 events and 10,000 enterprises" for small, medium, and large enterprises, reaching 12,000 intended deals. We cooperated with the State-owned Assets Supervision and Administration Commission of the State Council to carry out a common chain action for the integration and development of the industrial chain of state-owned enterprises (SOEs). The work of "releasing lists" by large enterprises for SMEs to select and undertake key projects has been carried out. In total, 409 technological innovation needs have been released, and more than 1,200 SMEs have jointly undertaken and tackled key problems, actively promoting the integration of innovative SMEs that use special and sophisticated technologies to produce novel and unique products into the industrial chain and supply chain of SOEs.
Third, we served corporate financing promotion. The MIIT organized and carried out the "one chain, one policy, and one batch" financing promotion activities for SMEs, cooperated with the National Financial Regulatory Administration to carry out the "Helping Thousands of Enterprises to Improve Confidence and Services" activity, and cooperated with the China Securities Regulatory Commission to promote the construction of 17 regional equity market boards, serving innovative enterprises that use special and sophisticated technologies to produce novel and unique products. The China SME Development Fund has established a total of 36 sub-funds. Innovative SMEs using special and sophisticated technologies to produce novel and unique products which were listed in 2023 account for 70% of newly listed A-share enterprises, becoming the main force among these listings.
Fourth, we served enterprises' external exchanges. The 18th China International Small and Medium Enterprises Fair and the APEC Small and Medium Enterprises Technology Conference and Fair were held, with more than 3,700 exhibitors attending and the intended deals exceeding 16 billion yuan. More than 100 cross-border exchange activities were held around the world, with over 10,000 SMEs from home and abroad participating.
Overall, the economic performance of SMEs picked up and improved in 2023. The value of industrial SMEs above designated size increased by 4.7% year on year, and the electricity consumption of small and micro-enterprises increased by 4.5% year on year. At the same time, we have also seen that due to the complicated and challenging external environment, some companies do face many problems, such as insufficient orders and high costs.
Tao Qing:
Going forward, the MIIT will work with various departments and localities in accordance with the decisions and plans of the CPC Central Committee and the State Council to create a good environment, further increase support, continue to improve the public service system for SMEs, and promote the high-quality development of SMEs.
First, we need to establish and strengthen public service agencies for SMEs. We will improve the service quality and efficiency of public service agencies at the provincial level and above, expand the coverage of city and county-level public service systems, extend the range of services, and improve service convenience.
Second, we need to accelerate the construction of "one network" services for SMEs across the country to provide enterprises with "one-stop" services. The China Small and Medium Enterprises Service Network was launched for trial operation on Jan. 1 this year. Everyone is welcome to provide their valuable feedback. We will continue to expand service functions and make our services broader, stronger, and more meticulous.
Thank you.
Xing Huina:
Today's press conference is hereby concluded. Thank you to all the speakers and friends from the media. Goodbye.
Translated and edited by Guo Yiming, Wang Qian, Liu Sitong, Wang Yanfang, Wang Ziteng, Zhang Rui, Qin Qi, Yuan Fang, Ma Yujia, Huang Shan, Xiang Bin, Wang Wei, Yan Bin, 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.
