Read in Chinese
Speaker:
Mr. Huang Shouhong, head of the government work report drafting team and director of the State Council Research Office
Chairperson:
Mr. Chen Wenjun, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO
Date:
March 5, 2024
Chen Wenjun:
Hello, ladies and gentlemen, and welcome to this briefing held by the State Council Information Office (SCIO). Today, we are very pleased to have invited Mr. Huang Shouhong, head of the government work report drafting team and director of the State Council Research Office, to elaborate on the Report on the Work of the Government.
Now, let's give the floor to Mr. Huang.
Huang Shouhong:
Hello, friends from the press. It's a pleasure to meet you and introduce the drafting of the report.
As you know, last year was the first year for implementing the guiding principles from the 20th National Congress of the Communist Party of China (CPC). This year marks the 75th anniversary of the People's Republic of China (PRC). It is also a crucial year for achieving the objectives and tasks laid out in the 14th Five-Year Plan. Against the backdrop of a complex and changing global economy, how has China, the world's second-largest economy, done in the past year? How should we view it? What new goals have we set for this year? What are our plans? And what are the development prospects? These questions are not only of concern to the Chinese people, but also to the international community. The Report on the Work of the Government delivered by Premier Li Qiang this morning reviewed the work of the past year, made requirements for this year's work, put forward the policy orientation, and responded to the concerns of all parties.
The CPC Central Committee and the State Council have attached great importance to the drafting of the government work report. General Secretary Xi Jinping has issued important instructions and specific requirements on multiple occasions when presiding over meetings of the Standing Committee of the Political Bureau of the CPC Central Committee and the Political Bureau of the CPC Central Committee, and during the deliberation on the report, providing guidance and fundamental guidelines for the drafting of the report. Premier Li Qiang presided over the drafting of this year's report. He chaired executive and plenary meetings of the State Council to discuss the draft, and convened several themed symposiums to study and revise the report and formulate relevant policies.
This year's Report on the Work of the Government follows the conventions of previous reports. As you know, the Report on the Work of the Government is a programmatic document for government governance and is normative to a certain degree. Therefore, this year's report follows the established norms, but also has some new characteristics, which can be summarized in many ways. In my personal opinion, they can be viewed from the following three aspects:
First, the report this year both reflects "top-down alignment" and is "down-to-earth." "Top-down alignment" means that the report precisely keeps to the correct political direction and fully adheres to the decisions and plans of the CPC Central Committee with Comrade Xi Jinping at its core. This can also be said to be the most prominent and important feature of this year's report. As we all know, at the beginning of its term of office last year, the current government made it clear that it would act as a faithful executor and an action-oriented and pragmatic team for the implementation of the decisions and plans of the CPC Central Committee. When the drafting work began this year, Premier Li Qiang clearly requested that the report thoroughly implement the decisions and arrangements of the CPC Central Committee. The main content of the report this year, including the review of last year's work and the overall requirements, main targets for development, macro policy orientations, and key tasks of government work this year, were all drafted in accordance with the guiding principles of the important speech delivered by General Secretary Xi Jinping at the Central Economic Work Conference last year. The report this year includes 10 major tasks, nine of which are the key tasks deployed by the general secretary in his speech at the Central Economic Work Conference. At the same time, considering that education, science and technology, and talents are the foundational and strategic pillars for building a modern socialist country in all respects, and considering that the 20th CPC National Congress has listed "science and technology, education and talents" in a separate section, the report has added a new section on "invigorating China through science and education and consolidating the foundations for high-quality development." Meanwhile, following established practice, the report also incorporates content on culture, social governance, government self-improvement, ethnic and religious affairs, overseas Chinese affairs, national defense and military development, Hong Kong and Macao, Taiwan, and diplomacy. These parts have all been drafted in line with the relevant directives of the CPC Central Committee. Following the Central Economic Work Conference, the CPC Central Committee convened a series of important meetings, including those of the Central Commission for Comprehensively Deepening Reform and the Central Commission for Financial and Economic Affairs , which also resulted in the formulation of key measures. After each meeting, the drafting team promptly studied and grasped the new initiatives and incorporated them into the report. Consequently, during the solicitation of opinions, all parties unanimously agreed that this year's report effectively embodies the "three full reflections." This means that it fully reflects Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era; fully reflects the guiding principles of the 20th CPC National Congress and the second plenary session of the 20th CPC Central Committee, and the Central Economic Work Conference; and fully reflects the important instructions and directives of General Secretary Xi Jinping and the decisions and plans of the CPC Central Committee.
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Huang Shouhong:
The "down-to-earth" aspect of this year's report is reflected in the fact that it accurately reflects the pulse of society, fully represents the aspirations and concerns of the people, and responds to the concerns of all stakeholders, especially those at the grassroots level, the general public and businesses. All the policies and measures are practical, aligned with the needs of the people, and beneficial to businesses. How has this been achieved? By extensively listening to opinions. Extensive consultation is not unique to this year's report; it is a cornerstone of the Party's approach to developing important documents and policies. This aligns with the principle of "from the people and to the people " — the "mass line" leadership and work method of the CPC. General Secretary Xi Jinping has made clear requirements for policy and document formulation, emphasizing the importance of transparent decision-making and collective wisdom. The general secretary embodies this principle through his own actions. For instance, in preparation for last year's Central Economic Work Conference, General Secretary Xi Jinping presided over a series of symposiums to gather opinions. He also undertook research visits to various locations on many occasions. As shown on TV and in news reports, the general secretary has actively engaged with people at all levels, visiting factories, workshops and farms to talk with local officials and ordinary people, hearing their opinions and suggestions. The general secretary's commitment to listening to the voices of the people, understanding their needs and learning about their living standards serves as a benchmark for us all. The major decisions made by the CPC Central Committee are a culmination of this very principle — gathering diverse perspectives to make informed decisions. It is even more important to openly seek advice and pool wisdom to ensure the standard of the draft report and implement the decisions and arrangements of the CPC Central Committee.
Huang Shouhong:
During the drafting and revising of the government work report, Premier Li Qiang visited grassroots communities for many occasions, and heard opinions and suggestions from representatives of all walks of life at three symposiums, including one attended by experts in various fields, businesspeople , and representatives from sectors such as education, research, culture, and health; and one attended by leaders of non-CPC political parties and the All-China Federation of Industry and Commerce, and representatives of persons without party affiliation. He also presided over a symposium to listen to the opinions and suggestions of local officials at provincial, municipal, county and township levels on the draft government work report. Other leaders of the State Council also listened to opinions and suggestions through a range of methods.
During the drafting process, the report's drafting team was open to the opinions and suggestions of local authorities and government departments as well as those from all sectors of society. The draft report was based on the opinions and suggestions on the work that were put forward by local authorities and government departments. After the draft report was finished, it was printed and distributed to all localities, government departments and units to solicit opinions. This year, more than 4,000 copies were handed out, from which more than 1,100 pieces of feedback were sorted through. All sectors of society paid great attention to the drafting of the government work report and put forward a large number of suggestions through various methods. Many news media, online platforms, Weibo, forums and so on, collected netizens' opinions. For example, this year, the gov.cn website teamed up with 29 online media platforms to launch @State Council, Share Your Views on 2024 China's Government Work Report campaign. As of yesterday, more than 1.6 million comments have been received from netizens, an increase of 82% over last year. The gov.cn website selected 1,150 representative suggestions and forwarded them to the drafting team. After preliminary sorting, a large stack of opinions and suggestions was forwarded to us each time with very detailed content, including reasons and suggestions. Some netizens even provided a feasibility analysis and timelines for the introduction of their suggested policies. This was very thoughtful. The netizens who left comments included both young and old, male and female. The oldest one was 82 years old and the youngest was 12 years old. Some netizens praised the practice of extensive listening to opinions on the draft work report. One of them commented: "Asking the people for their needs and suggestions makes the government work report more down-to-earth, well-grounded and engaging."
During the solicitation campaign, we also received suggestions from netizens from more than 40 countries, including investors, economists, teachers and doctors. They provided opinions and suggestions on topics such as investing and starting businesses in China, visa processing, and travel and shopping in China, among others. This year, the number of participating foreign netizens and the countries they come from increased significantly compared with previous years. This also reflects the fact that more and more people around the world are interested in China. They are optimistic about China's future, and are willing to cooperate with China and walk side by side with the Chinese people.
Overall, a large number of people made suggestions for this year's government work report. A total of 1.6 million people made suggestions on the gov.cn website alone, and millions more participated through other media-organized events. As such, the number of participants is huge and they represent all different occupations and age groups.
Approximately 10,000 people directly participated in the revision of the government work report. This includes the more than 4,000 relevant local and department officials mentioned earlier, as well as deputies to the people's congresses, members of the Chinese People's Political Consultative Conference, and other relevant individuals.
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Huang Shouhong:
We considered all these suggestions one by one, including those from netizens, to see if we could incorporate them either fully or partly. Even if we could not incorporate an entire suggestion, we still carefully examined each one, considering whether it contained reasonable elements and practical guidance at the operational level. Following the principle of incorporating as much as possible, we put forward our recommendations, which were submitted to the CPC Central Committee and the State Council for approval in accordance with the procedures and then written into the report. In the following days, we will continue to revise the report in accordance with the opinions of lawmakers and political advisors.
Second, the report integrates top-level plans with demands of grassroots communities. It combines the decisions and plans of the CPC Central Committee and the State Council with the demands and suggestions from all sectors of society, transforming them into specific task lists, blueprints and policy agendas for the government and its departments. As you know, the Central Economic Work Conference sets the overall tone, draws the big picture and outlines major policies, while enterprises and the public express their specific desires and demands. All of these need to be refined and translated into concrete policies and feasible measures. The report, after thorough research and deliberation, has formulated specific work tasks and policy measures, organically aligning the CPC Central Committee's decisions and plans with the wishes and demands of enterprises and the public.
The government work report covers a wide range of topics. Due to space limitations, we strived to condense the text while ensuring each sentence is carefully revised. We aimed to express richer content and meaning using concise language. Meanwhile, following Premier Li Qiang's instructions, we paid special attention to ensuring better connection between the government work report and the draft plan for national economic and social development as well as the draft budgets. The government work report primarily focuses on key points and summaries. It currently consists of 16,900 Chinese characters. The draft plan for national economic and social development and draft budgets, on the other hand, delve into specifics and details. The development plan report contains 58,900 Chinese characters, and the budget report contains 19,500 Chinese characters. These three reports complement each other, forming an organic whole. Therefore, when reading the government work report, it is essential to also consider the other two reports in order to gain a comprehensive understanding of the government's overall work arrangements this year.
Third, the report adheres to the principles of truthfulness, pragmatism and simplicity. Some journalists who were present for Premier Li Qiang's delivery of the report may have been deeply impressed by this aspect. This year's report follows the stylistic norms, aiming to be informative while also simple. When discussing last year's achievements, the focus is on presenting facts and data without embellishment. The report highlights the distinctive features of last year's work without attempting to cover every detail. In outlining this year's work, the emphasis has been placed on new arrangements and initiatives. For important tasks that require continuous progress and major strategies that require continuous implementation, concise summaries are provided. When introducing various policies and measures, the focus is on practical content — which is what the public are most interested in. The report strives to be targeted, proposing effective policies and measures that genuinely address the concerns of society. The language used aims for simplicity and clarity, to ensure that it can be understood by ordinary people.
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Huang Shouhong:
Earlier, I introduced the drafting of the government work report and its characteristics. Recently, I have read some international reports where some people often get confused about confrontation with complex and severe international environments and various risks and challenges. Many countries often find that their development goals cannot be achieved as expected or the results may fall short of their expectations. With regards to that, they ask one question: how can China always accomplish its goals and tasks in these years and continue to attain new achievements in its development ? There are many reasons for this. One reason is that when the CPC and the Chinese government make development goals and put forward important policies, we implement the mass line, bring democracy into full play and seek the biggest common ground possible, which thus lay a solid popular and social basis, instead of decisions being made by a few people behind closed doors and reflecting the will and aspiration of only a few people. This year's government work report fully demonstrates the bond between the Party and the people as well as the resonance between policymaking and public opinion. It also fully reflects the will, aspiration and demand of the people nationwide. I believe that after the deliberation and approval at the second session of the 14th NPC, the report will be jointly followed and acted upon accordingly by the people nationally and will gather strong driving force for economic and social development. The goals and tasks put forward in the report will definitely be accomplished. As a Chinese saying that many are familiar with goes, "People with one mind and heart have the power to move a mountain."
The report is comprehensive, systematic, and rich in content. To understand it, we must grasp its main ideas and purpose. According to my personal understanding, the soul of the report is Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and its essence is the guiding principles of the Central Economic Work Conference. The main idea that runs through the report is that upholding high-quality development is of paramount importance in the new era. The report focuses on the central task of economic development and the priority task of high-quality development. Advancing high-quality development requires full and faithful application of the new development philosophy on all fronts and a good grasp of its general logic of reform, opening up and innovation as well as the starting point and ultimate goal of safeguarding and improving people's wellbeing.
Due to time constraints, that's all for my brief introduction. Next, I would like to discuss the drafting of the report with you. Thank you.
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Chen Wenjun:
Thank you, Mr. Huang. Now the floor is open for questions. Please identify your media outlet before raising questions.
CCTV:
This year's government work report reviewed the work accomplished and achievements attained last year. What's your thoughts of these achievements? When reviewing the achievements of last year, the report described that these achievements "did not come easily." What's the difference in last year's difficulties? How were these difficulties overcome? Thank you.
Huang Shouhong:
We have all experienced the past year together. Different people may have different opinions towards the achievements we made last year. Generally speaking, I believe that these achievements are commendable and carry weight. They demonstrate both significant progress and great potentials, and consist of both material and cultural wealth.
We can see external, tangible, and visible achievements that can be measured by data. For instance, China's economic aggregate surpassed 126 trillion yuan, with a growth rate of 5.2%. We can make comparisons both horizontally and vertically. By a vertical comparison, the growth rate of 5.2% is 2.2 percentage points faster than last year, and is faster than the average annual growth rate of 4.5% in the past three years during the COVID-19 pandemic. By a horizontal comparison, China takes a leading position among major global economies and is still the largest driver of growth for the global economy, contributing about 30% to total global economic growth.
There are also achievements that cannot or are difficult to be quantified but can be perceived and felt by everybody. For example, new industries, new business forms and models continue to emerge; public transportation is more convenient and there is a larger variety of goods and services for people.
In addition to that, there are also many intrinsic, profound and silent changes, such as the transformation of concepts, consistent improvement to institutions, improvements in conduct and accelerated shift with the growth model.
Overall, we can perceive the achievements we made last year from multiple dimensions and perspectives. This is like what a Chinese poem says, "One gets different impressions of a mountain when viewing it from the front, sideways, at a close range or from afar." We will have different feelings about these achievements when viewing them from different perspectives. Generally speaking, China's economic development last year saw both growth in quantity and improvement in quality as well as intangible positive trends. It can be said that these achievements are high-value additions. In his 2024 New Year message, General Secretary Xi Jinping spoke profoundly about the work and achievements in the previous year. In 2023, we marched forward with solid and robust steps, in high spirits and with great confidence.
These achievements have been attained with tremendous efforts and are extraordinary. In your question, you mentioned that when we talk about these achievements we often say that these achievements came with difficulty. During the process of soliciting opinions, many organizations and individuals put forward suggestions, and the word "uneasily" in their comments was always preceded by a word, some by "very," some by "particularly," some by "extremely," and so on. As mentioned earlier, this year's report values plainness and simplicity, so these adverbs, including "very," "extremely" and "particularly," were not added. However, last year was indeed not easy. You all experienced last year personally and must have deep feelings. At the beginning of last year, we achieved a smooth transition with our COVID-19 response efforts. The transition itself was a complex process and all parties have made tremendous efforts, which in itself is a great achievement.
In terms of economic development, according to the report, we were faced with a combination of multiple difficulties and challenges, which can be said to be rarely seen in our work. It is the interlacing of multiple factors such as pandemic factors and complicated economic recovery factors. During the last three years of the pandemic, we have made great achievements in protecting people's lives and health. At the same time, the COVID-19 pandemic has affected China's economic performance and damaged its economy. In addition, contradictions and risks that have been building up over the years are becoming more evident, including the risks in the real estate sector, local government debt and small and medium-sized financial institutions. We also encountered many new conditions and problems, such as insufficiency with domestic demand and decline in external demand as well as co-existence of cyclical and structural problems. Honestly speaking, it would not be easy to cope with just one of these challenges. It would be harder to effectively handle all these challenges. Therefore, faced with an extremely complicated and severe situation, it was not easy for us to maintain stable economic performance and complete the tasks for economic development in 2023. In many areas, just as mentioned in the report, there are many positive trends, which are even harder to achieve. Therefore, to understand the achievements of last year, we must combine background and situational circumstances. It is just like when we look at a painting, we need to look at the background.
What does China owe to its commendable achievements that did not come easily in the past year? The report notes that we owe our achievements in 2023 to General Secretary Xi Jinping, who is at the helm charting the course, to the sound guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, to the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, and to the concerted efforts of the whole Party, the armed forces, and Chinese people of all ethnic groups. At the same time, these achievements once again demonstrate the decisive significance of establishing Comrade Xi Jinping's core position on the Party Central Committee and in the Party as a whole and establishing the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era while fully demonstrating the strong resilience, potential and momentum of China's economy.
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Huang Shouhong:
There are three characteristics of our macro policies and efforts last year worth summarizing.
First, giving priority to consolidating the foundations of the economy. The expression "consolidating the foundations," used in the report is frequently found in traditional Chinese medicine. After three years of COVID-19, the Chinese economy has entered an overall recovery stage, analogous to the process of "recovering from a serious illness." At the same time, it faces multiple difficulties and challenges, exerting increased pressure on our economy. There are two ways to respond to this circumstance. One approach is to implement a deluge of stimulus policies and strong stimulus measures to increase the growth rate in the short term. If we did so, we would certainly achieve a higher growth rate in the short term but would suffer its after-effects. The other approach is to pursue progress while ensuring stability, just like how traditional Chinese medicine helps patients who just recovered from a serious illness to recuperate and restore their vitality. After analysis and comparison, we opted for the approach of consolidating the foundations of the economy to ensure stable growth and sustain momentum. We implemented a number of measures conducive to both current and future development.
Second, strengthening interplay between policies to see that together they deliver greater outcomes. Since we faced multiple challenges last year, each with its own nature and characteristics, we could hardly adopt a single policy that would address all challenges. Therefore, last year, we placed greater emphasis on coordinating policies to ensure that, collectively, they deliver greater outcomes. To address tasks including expanding domestic demand, improving the economic structure, bolstering confidence, and preventing and defusing risks, we adopted a comprehensive range of robust and effective policies, including well-coordinated fiscal, monetary, and employment policies, to create synergy.
Third, placing an emphasis on taking targeted steps. In view of different contradictions and problems, we implemented varied targeted measures. Last year, for example, we introduced policies to support the development of state-owned enterprises, private companies, and foreign investment in response to the specific situations and needs of different business entities. There were both shared policies and targeted measures to address different difficulties and needs.
On the whole, we achieved commendable accomplishments last year and accumulated valuable experience. A thorough understanding of these achievements last year ensures a deeper insight into the reasons behind China's economic achievements in the past few years and boosts confidence in achieving development goals this year, as the logic and fundamental driving factors are the same. This is also why I spent more time elaborating on it.
Thank you.
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Market News International:
According to the government work report, China has set a GDP growth target of around 5%. Why has the GDP target been set at this level? And what measures will authorities implement to ensure this target can be met?
Huang Shouhong:
In setting the growth rate for this year at around 5%, we considered evolving dynamics at home and abroad, along with other relevant factors, as well as what is needed and what is possible. It can be said that we have set this target based on current needs and with a long-term view. To be specific, from the perspective of current needs, we require a certain rate of economic growth to expand employment, increase people's incomes, and prevent and defuse risks. There is relatively high employment pressure this year, with more than 12 million new urban jobs to be created. If we do a rough calculation based on the relationship between employment and economic growth, or how economic growth will stimulate employment, the economy needs to maintain a growth rate of around 5% to meet the employment target. Certainly, other needs should also be taken into account.
In the long term, or in the medium to long term, we will basically realize socialist modernization by 2035, which entails reaching a per capita GDP level comparable to moderately developed countries. While no specific quantitative requirement is stated, there is an implicit requirement for the economic growth rate. According to comprehensive estimates, to basically realize socialist modernization by 2035, we will need to maintain an economic growth rate of around 5%. This target is set based on a comprehensive analysis of the supporting conditions and favorable factors for China's economic growth.
Actually, this has been the way that the Party and the government have set development goals over the years, considering both what is needed and what is possible. While higher targets may be desirable in terms of what is needed, setting targets unattainable due to lack of support would not work. As for whether we can achieve the growth target we have set, I believe there are conditions and support to achieve a growth rate of 5% this year.
Recently, there have been forecasts for China's economic growth rate this year. Some major international organizations, including the International Monetary Fund, along with some economists, have made their forecasts and shared their views. As for why we have expressed confidence in our ability to achieve this target, I will elaborate on it here not from an academic or theoretical perspective, but based on a basic logic and common sense.
First, the fundamental driving factors for China's economic growth, including the 5.2% growth achieved last year, have remained unchanged, with some even growing significantly stronger. According to the report, China possesses several advantages for developing its economy, including vast market demand, a complete industrial system to ensure supply, and a huge and highly skilled workforce. For example, in recent years, new driving forces have been rapidly developing and growing stronger year by year. The new energy vehicle sector, for example, has expanded from scratch to what it is now in just over a decade. Last year alone, the production and sales volume exceeded 9 million, accounting for more than 60% of the global share.
Second, positive factors for economic development have been on the rise since the beginning of this year, while some of the unfavorable factors hindering economic development last year are weakening. In January and February of last year, we were still working hard for a smooth transition in epidemic response following a major, decisive victory in the fight against COVID-19. This year, the lingering effects of the epidemic are waning. For example, progress was made last year in preventing and defusing risks in real estate, local government debt, and small and medium financial institutions, thanks to the concerted efforts of all stakeholders. Real estate investment and sales improved overall. Certainly, some conditions are still changing. Local debt risks have been alleviated on the whole, and the reform of small and medium financial institutions to defuse risks is accelerating. In terms of preventing these major risks and potential dangers, we still face challenging tasks, as well as new situations and problems. But in any case, we are in a better situation this year than last year, not worse. The same applies to some other factors as well. By no means am I ignoring the difficulties and challenges in saying so. In fact, China still faces challenging and complex evolving dynamics at home and abroad in its economic development, and the report describes at length the difficulties and challenges we face. However, despite difficulties every year, we have consistently improved our quality of life. Zooming out, we can see that in recent years, China has been developing, progressing, and growing stronger in addressing difficulties and challenges.
Third, some major policy measures taken since last year gradually started to take effect this year. It takes some time for policies to take effect after they are implemented, so the effects of policies adopted in the second half of last year are expected to be revealed this year.
Moreover, we have gathered extensive experience while dealing with the difficulties over the past couple of years, especially those problems last year that have not been seen for several years. Fiscally and financially speaking, China's government debt ratio is below 60%, and its financial systems operated in a robust and stable manner. The country has ample space in macroeconomic policies. The government work report pointed out a lot of major policies to achieve this goal. There are also various tools in reserve that will enable us to deal with any unexpected shocks to the Chinese economy, or unexpected changes in the international environment.
According to the report, generally speaking, there will be both strategic opportunities and challenges, with favorable conditions outweighing unfavorable ones. China's economy expanded by 5.2% last year, so it is entirely possible that the economy will achieve the growth target of around 5% this year. Of course, hard work is necessary to make things happen. In order to achieve this year's target of 5% growth, we must meet challenges head-on and overcome difficulties, and all sides need to make continued efforts. In this regard, the report pointed out that as long as we fully implement the decisions and plans of the Party Central Committee, make good use of all favorable opportunities and conditions, and fully leverage the motivation, dedication and creativity of everyone , we will undoubtedly overcome any difficulties and challenges, promote sound and steady economic growth, and achieve this year's projected growth target.
Thank you.
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People's Daily:
We noted that this year's government work report put forward a lot of new policies and measures to ensure and improve the people's well-being, which we have all been looking forward to. What new benefits will the people receive this year? Can all these promises be fully met given the fact that some local governments are facing fiscal pressure? Thank you.
Huang Shouhong:
Thank you for your questions. Improving the people's well-being is the fundamental purpose of development. This year's report focused on the public's concerns, and put forward a lot of policies and measures. Efforts to ensure and improve the people's well-being are reflected in many places in the report with various requirements.
For example, the overall requirements section and other parts of the report mention improving the people's well-being. In the section on education, the report stressed efforts to improve the conditions in boarding schools in rural areas. There are more than 30 million boarding students in compulsory education nationwide, many of whom are left-behind children. Although the conditions of boarding schools in rural areas have improved remarkably in recent years, many weak links remain. As such, the report emphasized increasing efforts to shore up such weak links so as to ensure these children can attend school and study well.
Regarding medical and health services, the report pointed out that subsidies for basic medical insurance will continue to increase, with government subsidies for basic medical insurance for rural and non-working urban residents increasing by 30 yuan to 670 yuan per person per year. Moreover, regarding difficulties in receiving medical treatment and getting reimbursement, the report noted that efforts will be made to implement and refine the policies on settling medical expenses where they are incurred, to improve medical services with a patient-centered approach, and to promote mutual recognition of medical examination results between hospitals.
Regarding social security, the report pointed out that continued efforts will be made to increase basic pensions for retirees, and the minimum basic old-age benefits for rural and non-working urban residents will be raised by 20 yuan per month. I'd like to briefly introduce this point. Currently, more than 170 million elderly people across the country have been receiving old-age insurance benefits for urban and rural residents. The minimum standard will be raised by 20 yuan this year, an increase of 19.4%, which is the largest increase in recent years.
The report contains a lot more measures to ensure people's well-being, but I will not list them all due to time constraints.
Huang Shouhong:
As mentioned previously, some local governments are facing fiscal pressure. As such, there have been concerns raised about whether there will be sufficient financial support for the measures proposed in the government work report, as well as the reports on budgets, national economic and social development plans, and whether the promises can be fulfilled. The government work report made special emphasis in this regard, and made arrangements accordingly. In the section on proactive fiscal policy, it stressed that it will further improve the structure of government spending, and ensure sufficient funding for major national strategic tasks and efforts to meet people's basic living needs. The central government will increase transfer payments to local governments this year, with its budget being more than 10 trillion yuan. Governments at the provincial level, meanwhile, should allocate more fiscal resources to lower-level governments to ensure that at the primary level, basic living needs are met, salaries are paid and governments function smoothly. The budget report also made detailed arrangements on spending to meet basic living needs, which you may also refer to.
I believe the arrangements for improving the people's well-being made this year will be fully implemented with the concerted efforts by all of us throughout the country. The government work report also emphasized efforts to address inadequacies in public well-being from the perspective of development. This is very important. Improving the people's well-being is also a driving force for economic development. Addressing problems regarding employment, elderly care and medical care will not only improve people's well-being, but also unleash the enormous potential of domestic demand. Therefore, we need to deal with issues regarding people's well-being, such as ensuring elderly care and child care, and facilitating kindergarten and school enrollment of children. As such, we need to increase investment, which will lead to expenditures in other areas. All the measures to ensure and improve people's well-being can be achieved, as we have made sure that the measures and targets are entirely feasible, and the government has studied and formulated supporting measures. While ensuring and improving the people's well-being, our fundamental principle is to do everything we can within our capacity. The government needs to fulfill its responsibility to meet people's basic needs, and provide a cushion for those most in need. On top of this, the government will do its best to improve people's well-being. Thank you.
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Beijing Youth Daily:
My question is about people's well-being. Employment is pivotal to people's well-being. In recent years, the employment of young people, especially college graduates, has generated widespread concern. The latest Report on the Work of the Government proposed adding no fewer than 12 million urban jobs this year. What were the considerations in setting this goal when faced with relatively high pressure in this regard? And can this goal be achieved? Thank you.
Huang Shouhong:
Thank you for your questions. Employment is pivotal to people's well-being. It concerns the most fundamental interests of both the country and individuals. Employment of the younger generation is the most important concern of every family.
In recent years, the CPC Central Committee and the State Council have put great emphasis on employment, and taken a slew of measures. This year's government work report highlights an employment-first approach and makes a series of measures. First, this year's report projects the number of added urban jobs to exceed 12 million, compared to "about 12 million" in last year's report. This demonstrates that the Party and the central government's strong efforts, determination and clear policy orientation in stabilizing employment.
The report proposes an array of policies and measures in three aspects to achieve employment objectives, especially those about guaranteeing employment for young people and college graduates: First, policy support will be bolstered, including macro policy support. The report requires further support of fiscal and financial policies for employment, rolling out more policies conducive to stabilizing expectations, maintaining growth and guaranteeing employment. Meanwhile, specialized policies promoting employment are enhanced, such as policies on unemployment insurance premiums refunds, special loans for stabilizing and increasing employment, and employment and social insurance subsidies.
Second, support for enterprises in key industries and key groups will be strengthened. The report requires to provide more support to sectors and enterprises with a large capacity for creating jobs, and more assistance for key groups like college graduates. The report also arranges work to ensure fair employment and guarantee the rights and interests , which are of great social concern.
Third, vocational skills training will be enhanced. In China, the pressure on aggregate job creation coexists with the related structural issues. In many industries, fields and regions, some people don't have jobs, while some jobs are in urgent need of employees. Shortages of talented workers occur in many industries and sectors. For example, the manufacturing sector faces a shortage of 30 million employees. The potential need for elderly care workers amounts to more than 10 million, but the number of such workers is only over 300,000. Families with elders, especially those having elders with disabilities, may find it difficult to find skilled and practiced elderly care workers. Now, China has more than 5 million nurses, with an annual increase of 300,000 people. But the average number of nurses for each 1,000 people is only 3.7, lower than the average number of developed countries, which is from eight to 15 nurses. The shortages indicate our employment potential and the key lies in taking measures to align labor supply with demands and coordinate labor force's employment skills, professions and abilities with demands. The report points out that we will enhance vocational skills training to meet job demands in sectors such as advanced manufacturing, modern services, and elderly care. These policies shall ease current employment pressure and improve labor force's caliber in a bid to meet needs for high-skilled workers during economic development.
In general, we face great pressure in stabilizing employment while seeing to the huge potential that lies in employment, and we strive to fully unleash this potential. The employment condition this year certainly will be promising. Thank you.
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Lianhe Zaobao:
Chinese Premier Li Qiang mentioned in this year's government work report that the targeted fiscal deficit-to-GDP ratio is set at 3%. Why does China set the number at 3% this year? How to interpret this percentage? Thank you.
Huang Shouhong:
As is widely recognized, the fiscal deficit-to-GDP ratio serves as a crucial indicator reflecting the strength of fiscal policy and degree of fiscal risk. Globally, there is a "red line" of a 3% fiscal deficit ratio, but it is not a golden rule as many countries' deficit-to-GDP ratio may far surpass 3% at times, with some reaching double digits. In China's case, our deficit-to-GDP ratio has been kept within a reasonable and moderate range over the years, taking into account factors such as supporting economic growth, preventing fiscal risks and achieving fiscal sustainability. Over the years, China's deficit-to-GDP ratio only exceeded the 3% mark in 2020 and 2021, during the response to the COVID-19 pandemic. Otherwise, it has remained below the level. In the beginning of 2023, the central government set a deficit-to-GDP ratio of 3% when arranging the budget. With the issuance of an additional 1 trillion yuan in special treasury bonds in the fourth quarter, which counted towards the deficit, the ratio rose to approximately 3.8%. This year, we have set the deficit-to-GDP ratio at 3%, the same as the budget arranged at the beginning of last year. Although this year's deficit ratio is slightly lower compared with last year's after the issuance of 1-trillion-yuan government bonds , the overall level is appropriate. The fiscal arrangement is in line with the overall positive trend of China's economic operations, sending an optimistic message to the international community, which is also conducive to controlling the government debt ratio and enhancing fiscal sustainability. It also reserves policy space to address potential future risks and challenges. After considering these elements, we have set the deficit-to-GDP ratio for this year at 3%.
Recently I noticed that some experts, scholars and institutions are discussing what China's deficit-to-GDP ratio should be. Some suggest a little bit over 3% while some say a little lower than 3%. Fiscal deficit-to-GDP ratio should be set according to the general fiscal policy tools. The report says the country will appropriately enhance the intensity of proactive fiscal policy and improve its quality and effectiveness this yea r, which requires coordinated deployment of various policy tools to unleash overall effects. These include deficit, as well as other policy tools such as special bonds of local governments, national debt and preferential tax and fees policies. Therefore, this year's lower deficit after last year's adjusted budget doesn't mean the proactive fiscal policy abates. Rather, proactive fiscal policies mentioned in the report shall be considered as a whole. Though the deficit-to-GDP ratio maintains at 3%, the expanded GDP leads to a total of 4.06-trillion-yuan deficit this year, which is 180 billion yuan more than the budget at the beginning of last year. Besides, 3.9 trillion yuan of special-purpose bonds for local governments will be issued this year, an increase of 100 billion yuan over last year. The fiscal revenue this year will sustain a growing trend, and the fiscal expenditure will be quite large. This year, general public expenditures in the government budget are projected to reach 28.5 trillion yuan, an increase of 1.1 trillion yuan over last year. Hence, the fiscal policy this year is appropriately strengthened, and the key is to spend the budget wisely on vital sectors. By doing so, we will guarantee sufficient funding for major national strategic tasks and efforts to meet the people's basic living needs as required by the work report.
Thank you.
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Zhinews of Shenzhen Satellite TV:
Last year, China saw a decline in actual foreign investment utilization, raising concerns about the confidence and outlook of some foreign enterprises in the country. How should we interpret this situation? What policies and measures will be implemented this year to attract foreign investment? Thank you.
Huang Shouhong:
From a data perspective, there was a decline in the actual utilization of foreign investment last year. Short-term fluctuations are normal and result from various factors, including many elements that are incidental or only last for a certain period. In addressing this issue, the focus should be on assessing the overall trend and trajectory.
Last year, according to data from the United Nations Conference on Trade and Development, global foreign direct investment (FDI) declined by 18% after excluding the rapid growth of FDI intermediaries. At the same time, countries worldwide are intensifying their efforts to attract investment, resulting in increased competition in this area. Last year, China's growth in attracting foreign investment decreased by 8% when denominated in RMB. However, the overall size remains relatively big, considering both horizontal and vertical comparisons. Vertically, China is currently at its third-highest level, slightly lower than in 2021 and 2022. Horizontally, China continues to rank first among developing countries in attracting foreign investment, with its share of global FDI exceeding 10% and remaining relatively stable.
Of course, attracting foreign investment faces some disruptive factors, and there are indeed some noteworthy new situations and issues to consider. However, it's important to note that investors are rational and focus on medium and long-term returns. According to statistics from relevant authorities, foreign investors who have invested and operated in China in recent years have enjoyed a direct investment return rate of around 9%, which is relatively high internationally. Therefore, China remains globally attractive for foreign investment. With China's vast market and immense potential, many technologies get adopted and promoted quickly here once brought in, including new ones in the field of digital economy. With over a billion smartphone and internet users in China, any new technology introduced here can be promoted quickly. The investment potential and opportunities in China are enormous, which is why foreign investors maintain a high level of enthusiasm for investing in the country. Recent surveys by some foreign chambers of commerce have shown that the vast majority of companies investing in China have no plans to reduce their investments, with a high proportion continuing to regard China as their top or one of their top three global investment destinations.
The government work report outlines several key measures to attract foreign investment. First, it emphasizes the steady expansion of institutional openness. Second, it underscores the ongoing efforts to relax market access for foreign investment. Over the years, the negative list for foreign investment access have consistently shortened. In 2013, the first version of the negative list contained 190 items, but the current nationwide version has been reduced to 31, and the version for free trade zones to 27. This year's report proposes abolishing all restrictions on foreign investment in the manufacturing sector. Market access restrictions will also be reduced in services sectors such as telecommunications and healthcare. Additionally, it stresses the need to regularly remove policy measures that undermine fair competition between domestic and foreign enterprises. Third, it emphasizes strengthening services for foreign investors, including the need to make China a favored investment destination and facilitate easier work, study and travel for foreign nationals in China. Thank you.
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ThePaper.cn:
We have observed that some private enterprises currently lack confidence and are pessimistic about their development prospects, resulting in a reluctance to invest and expand production, further affecting private investment and employment. What effective measures will be taken this year to boost the expectations and confidence of private enterprises?
Huang Shouhong:
The private sector is a crucial component of the Chinese economy and a key driver of modernization. The CPC Central Committee and the State Council have attached great importance to the development of private enterprises and the private economy. In recent years, General Secretary Xi Jinping has delivered a series of important speeches, and the CPC Central Committee and the State Council issued documents last year to promote the development and growth of private enterprises. The government work report outlines the following measures in this regard:
First, it requires the implementation and refinement of various supportive policies. Over the years, numerous supportive policies have been introduced to promote the development of private enterprises. The overall implementation of these policies has been positive, but there are areas where full implementation has been lacking. It is imperative to continue refining and meticulously implementing these policies. Additionally, new measures addressing the concerns of enterprises should be introduced. For instance, regarding the issue of overdue payments frequently raised by private enterprises, the report calls for the improvement of the long-term mechanism to prevent and resolve overdue payments owed to private enterprises. Furthermore, to address the challenges of difficult and expensive financing faced by private enterprises, the report suggests increasing the proportion of loans to private enterprises and expanding the scale of bond financing, among other measures.
Second, it calls for efforts to optimize the business environment to address enterprises' concerns. The report highlights the importance of tackling the prominent issues faced by private enterprises concerning market access, access to factors of production, impartial law enforcement, and the protection of rights and interests. These issues are frequently reported by private enterprises. Additionally, measures will be taken to deepen the construction of a unified national market while ensuring a market order based on fair competition.
Third, it proposes support for the innovative development of the private economy. Since the beginning of reform and opening up, many private enterprises have made bold explorations and exhibited a keen entrepreneurial spirit, significantly contributing to economic growth, job creation, and the enhancement of people's livelihoods. This entrepreneurial spirit is a valuable asset. The report underscores the importance of encouraging entrepreneurship and supporting entrepreneurs to focus on innovative development and lead their companies to greater success. On the one hand, the government should cultivate a sound environment and provide platforms for private enterprises. On the other hand, private entrepreneurs should proactively pursue opportunities and overcome challenges. Reflecting on the past 40 years of reform and opening up, private enterprises have thrived despite various obstacles. While they currently face numerous difficulties and problems, it's helpful to consider the progress made compared to 40 years ago, 10 years ago, or even five years ago. Conditions for the development of private enterprises and various other factors have greatly improved. China's market mechanisms, legal environment and credit system have all seen significant enhancements. In the past, with the support of the Party and the government, private enterprises have continuously flourished. In today's landscape, by responding proactively to the requirements of the CPC Central Committee, private enterprises, which have achieved remarkable success in the past, are poised to achieve great new accomplishments in the future.
That's all from me for this question. Thank you.
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Yicai:
The Central Economic Work Conference, held at the end of last year, pointed out that insufficient effective demand is a difficulty and challenge that needs to be addressed currently. This year's government work report makes arrangements for expanding domestic demand. What efforts will be made in this regard? Thank you.
Huang Shouhong:
Domestic demand has always been the main driving force of China's economic development. In recent years, it has accounted for more than 90% of economic growth. Following a smooth transition in epidemic response last year, China has seen a fast recovery in domestic demand. However, difficulties and issues also emerged during the expansion of domestic demand. The government work report has made arrangements in this regard, mainly focusing on three aspects:
First, we will promote steady growth in consumer spending. This year, we will take a full range of steps to unlock potential demand by increasing incomes, improving supply, and reducing restrictions. Potential demand is evident. Since last year, activities such as Village Super League football games, village Spring Festival galas, ice and snow tourism, and crossover collaborations have gained immense popularity. Street shopping in cities and leisurely tours in rural areas have become new trends, while domestic brands are gaining traction with consumers. These trends highlight the significant potential of new consumption patterns, which we plan to expand further this year. At the same time, we will boost spending on automobiles, home appliances, and other big-ticket items. That will include both newly added items as well as equipment renewal and trade-in of consumer goods. Additionally, we will propel the expansion and improvement of service consumption. In recent years, with economic development and the improvement of people's living standards, the demand for services has surged and service consumption has enjoyed sustained growth. This year, new measures will be taken to respond to this trend.
Second, we will work to increase effective investment. On the one hand, we will fully leverage the stimulating effect of government investment. In terms of volume, both central budgetary investment and local special bonds will increase compared to last year. In terms of investment areas, these investments primarily target areas where we need to address deficiencies and boost momentum, such as scientific and technological innovation, energy conservation, emission reduction, and ensuring people's well-being. On the other hand, we will stabilize and expand private investment. Relevant departments formulated policies to promote private investment last year, and this year, they will further implement and enhance some new measures proposed in the government work report.
Third, we will promote the integration of investment and consumption. This year, more emphasis will be placed on coordinating the expansion of domestic demand and deepening supply-side structural reform to create a virtuous cycle of mutual promotion between consumption and investment. For instance, not long ago, the Central Commission for Financial and Economic Affairs and a State Council executive meeting assigned an important task: to promote large-scale equipment renewal and trade-in of consumer goods. This initiative is significant for boosting both consumption and investment. The combination of these two aspects is one way of coordinating investment and consumption and tapping into the potential of domestic demand. Additionally, we will actively advance people-centered new urbanization, which offers comprehensive benefits. From the perspective of domestic demand, it serves as a large platform integrating investment and consumption. Last year, China's proportion of permanent urban residents in the total population was 66.2%, which still lags behind the rates of over 80% seen in developed countries. The urbanization rate of registered residents was even lower. From this perspective, there is still considerable room for development and improvement in China's new urbanization. An increase in urbanization will generate significant demand for both consumption and investment. According to relevant estimates, the consumption demand brought by a person moving to the city is significantly higher than that of a rural resident. This year, as a matter of priority, we will move faster to grant permanent urban residency to eligible people who have moved to cities from rural areas , as outlined in the government work report.
Thank you.
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Red Star News:
The CPC Central Committee has reiterated multiple times the need to enhance the consistency of macro policy orientation to build a stable, transparent, and predictable policy environment. Thus, what aspects will the government pay attention to when formulating policies? Thank you.
Huang Shouhong:
Consolidating and building momentum for economic recovery and growth require us to enhance the consistency of macro policy orientation. In this regard, related arrangements have already been made at last year's Central Economic Work Conference and in this year's government work report.
First, we must enhance understanding, which means achieving unity in thinking with the CPC Central Committee. All localities and government departments have their own duties. When fulfilling these duties, they have to bear in mind the overall situation of the cause of the Party and the country. This year, our goal is to fulfill the main targets and tasks and promote high-quality development. Therefore, all localities and government departments have a responsibility to adhere to and serve this goal. They should actively consider what to do, and adopt more policies conducive to maintaining stable expectations, economic growth, and employment. They must exercise caution in formulating measures that could be contractionary or inhibitive in nature, and ensure the proper timing, intensity, and effect in introducing policies. Unity in thinking and enhanced understanding will lay a solid foundation for the consistency of macro policy orientation.
Second, we must set up and improve effective coordination mechanisms, thereby fully leveraging the roles of assessment, gatekeeping, and coordination. On the one hand, government departments under the State Council will conduct comprehensive and holistic assessments before introducing new policies to ensure they are conducive to steady growth and high-quality development. On the other hand, based on this, the National Development and Reform Commission will carry out further assessment using its policy and document evaluation mechanism. Policies and documents will only be released and implemented if they are proven, through the evaluation mechanism, to have no negative impact on stabilizing the macroeconomy and market expectations. Since many non-economic policies might directly or indirectly affect social expectations and economic operation, they will be included in the evaluation of the consistency of macro policy orientation according to the Central Economic Work Conference, in a bid to enhance policy coordination.
Third, in policymaking, all localities and government departments should heed and draw on the propositions and views of all concerned parties. They should pay attention to the views of business entities and respond to their concerns when formulating policies related to enterprises. Last year, relevant authorities established a regular communication mechanism between the government and enterprises, which has been well-received by enterprises. This mechanism will continue to be upheld and improved this year. Additionally, we should communicate policies to the public in a targeted manner to avoid misinterpretation and misjudgment by business entities. By doing so, we will effectively boost people's confidence in development and improve public expectations.
Thank you.
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Chen Wenjun:
The press briefing has lasted nearly 100 minutes. We now have time for one last question.
CRNTT:
A good policy hinges on its implementation. The government work report this year proposed a number of policies and measures. How can we ensure that they are fully implemented? What does the government plan to do this year to transform its functions and improve its performance? Thank you.
Huang Shouhong:
Successful implementation is central to a good policy. No matter how good a policy is, it is meaningless if it is not implemented. This is like a flower reflected in a mirror or a moon reflected in water. Following the requirements of General Secretary Xi Jinping on policy implementation, which are to take prompt, pragmatic, resolute and effective steps to fully deliver on all work initiatives, the State Council has established and improved a mechanism to ensure the full implementation of this year's policies. This mechanism requires joint efforts from all levels to address challenges at the initial, intermediate and final stages of policy implementation.
First, we should see that all those involved assume their full responsibilities. Efforts to this end must start with the departments under the State Council. The government work report will have legal validity once it is deliberated and approved by the National People's Congress. Then, the State Council will break down and disseminate all policy requirements in the report to the related departments and set deadlines for formulating detailed and effective measures, as well as supporting policies. Arrangements have already been made in this regard, and related departments have conducted studies into the implementation of the policies and measures set out in the report concurrently with its drafting. As a result, we will see some specific policies and measures being released after the "two sessions." Localities should align with the guiding principles of the CPC Central Committee, the arrangements in the government work report, and their local conditions, and make proactive plans and fully utilize drivers and levers in their work, which are also necessary for policy implementation.
Second, we should enhance coordination among all involved parties. All localities and government departments should adopt a holistic approach to the government's operations. From the perspective of the public, enterprises, and external stakeholders, the government is a single entity, regardless of the region or department. The government will be blamed if any department or locality fails in policy implementation. That is why adopting a holistic view is crucial. We should promote efficient coordination between central government departments and local governments, as well as between and within different departments, and establish corresponding rules. We should adopt list management and closed-loop management for implementing major policies to address problems wherever they arise throughout the entire process, from policy design and implementation to feedback.
Third, we should strengthen supervision and inspections of policy implementation. Since last year, the new term of the State Council has improved its supervision and inspection mechanisms and made many specific arrangements in this regard. Meanwhile, the government work report emphasizes the need to strengthen follow-up evaluations of policy implementation and make timely adjustments and improvements to address various problems such as inadequate and superficial implementation.
Fourth, all involved parties, including the news media, the public, and enterprises, should play supervisory roles in policy implementation. The public and enterprises are most aware of which policies have not been implemented. Their joint participation in supervision will create synergy to ensure the full implementation of policies. This will ensure that the final outcomes of our work align with the Party Central Committee's decisions and intentions, meet the people's expectations, and ensure that the objectives and tasks for this year's economic and social development are accomplished.
Regarding your question on transforming functions and improving performance, the report emphasized the need to "improve government performance across the board." This includes accelerating the building of a digital government and promoting one-stop government services to enhance our service levels. We will firmly tackle pointless formalities and bureaucratism and improve oversight, inspection and evaluation. I will say no more due to time limits.
In short, the CPC Central Committee and the State Council attach great attention to the issue of implementation. They have already taken measures and will consistently adopt measures to ensure that the content of the government work report and promises made by the government are effectively fulfilled, living up to the great hopes and expectations of people across the country.
That's all from me. Thank you.
Chen Wenjun:
Thank you, Mr. Huang, and thank you to all our friends from the media. Today's briefing is hereby concluded. Goodbye.
Translated and edited by Li Huiru, Huang Shan, Xu Kailin, Zhou Jing, Zhang Jiaqi, He Shan, Gong Yingchun, Wang Qian, Liu Jianing, Qin Qi, Yuan Fang, Mi Xingang, Lin Liyao, Wang Wei, Li Xiao, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.
