Read in Chinese

Speakers:

Mr. Jin Zhuanglong, minister of industry and information technology

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

Chairperson:

Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

July 5, 2024

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Jin Zhuanglong, minister of industry and information technology, to brief you on relevant developments and answer your questions. Also present today are Mr. Xin Guobin, vice minister of industry and information technology; and Mr. Zhao Zhiguo, spokesperson and chief engineer of the Ministry of Industry and Information Technology (MIIT).

Now, I'll give the floor to Mr. Jin for his introduction.

Jin Zhuanglong:

Ladies and gentlemen, good morning. First, I would like to thank everyone for your concern and support for the MIIT.

The 20th National Congress of the Communist Party of China (CPC) emphasized that high-quality development is the primary task in building a modern socialist country in all respects. It clearly stated that we will basically achieve new industrialization by 2035, and move faster to boost China's strength in manufacturing. General Secretary Xi Jinping has highlighted that the high-quality development of manufacturing is crucial to the high-quality development of the economy, emphasizing the importance of "two guarantees" to maintain grain production capacity and strengthen the manufacturing sector and urging accelerated efforts to develop a modern industrial system with advanced manufacturing as its backbone. Last September, the CPC Central Committee held a national meeting on promoting new industrialization, at which General Secretary Xi Jinping delivered important instructions. He pointed out that on the new journey in the new era, achieving new industrialization is a key task for building a great modern socialist country in all respects and advancing national rejuvenation on all fronts through Chinese modernization, emphasizing the need for high-quality development throughout the entire process of new industrialization. His important discourse on new industrialization has clarified the strategic positioning, overall goals, direction, strategic tasks, key areas and methodological principles for advancing new industrialization in the new era, providing us with a clear direction, fundamental guidelines and an action plan.

The MIIT has thoroughly implemented General Secretary Xi Jinping's important instructions and the deployments made during the national meeting on promoting new industrialization. Together with various parties, we have made new progress and achieved new results in new industrialization. Here, I will briefly introduce the overall situation regarding industry.

We have formed unique advantages that can be summarized in three words: comprehensive, diverse and large. "Comprehensive" means our system is complete, with 41 major industrial categories, 207 medium industrial categories and 666 industrial subcategories, covering all industrial categories in the United Nations' industry classification system. "Diverse" refers to a wide variety of products in all kinds of manufacturing industries, with over 220 products among the top global producers out of 500 major industrial products. "Large" signifies our scale, with the total industrial added value reaching 39.9 trillion yuan in 2023, accounting for 31.7% of GDP, and the added value of manufacturing accounting for 26.2% of GDP, about 30% of the global share.

The pace of high-end, intelligent and green development is accelerating. In 2023, high-tech manufacturing accounted for 15.7% of the added value of industrial enterprises above designated size, and equipment manufacturing accounted for 33.6%. The digital transformation of manufacturing is continuously advancing, with the penetration rate of digital research and development (R&D) and design tools in key industrial enterprises reaching 80.1%, and the numerical control rate of key processes reaching 62.9%. AI is deeply empowering new industrialization, with 421 national intelligent manufacturing demonstration factories being cultivated. Green manufacturing is advancing rapidly. During the first two years of the 14th Five-Year Plan (2021-2025) period, the energy consumption per unit of added value for industrial enterprises above designated size cumulatively decreased by 6.8%. From 2021 to 2023, water consumption per 10,000 yuan of industrial added value decreased by 20.3%. In 2023, the comprehensive utilization of major industrial solid waste reached approximately 2.2 billion metric tons, with a utilization rate of 54%.

The capacity for industrial scientific and technological innovation continues to improve. We have established 30 national manufacturing innovation centers, covering areas such as power batteries, humanoid robots and high-performance medical devices. We have also established 23 national independent innovation demonstration zones and 178 national high-tech industrial development zones. Notably, significant innovative achievements have been made in key areas. Six C919 large passenger aircrafts, which you are all familiar with, have already been delivered to China Eastern Airlines, with routes having been opened from Shanghai to Beijing, Xi'an, Chengdu and Guangzhou. A total of 139 ARJ21 regional aircrafts have been delivered, three of which have been delivered overseas. China's first domestically produced large cruise ship Adora Magic City has entered commercial operation. The Chang'e-6 spacecraft collected and returned samples from the moon's far side, with the China National Space Administration hosting a ceremony on June 28 to hand over a total of 1,935.3 grams of lunar samples. China's home-grown super-large-diameter shield tunneling machine "Jinghua" has been put into use, and the intelligent six-row cotton picker has entered mass production.

The strength of enterprises continues to grow. There are over 501,000 industrial enterprises above designated size nationwide and 463,000 high-tech enterprises. Key enterprises in the industrial chain are growing rapidly. Specialized and sophisticated enterprises that produce new and unique products are emerging, with over 140,000 small- and medium-sized enterprises of this type being cultivated, including 12,000 "little giant" enterprises with high growth potential, advanced technology and strong market competitive edge, and 1,557 single-product specialists in the manufacturing industry.

In recent years, China's information and communication industry has developed rapidly, achieving remarkable results in high-quality development. We have built a total of 3.837 million 5G base stations, accounting for over 60% of the global share, realizing "gigabit connectivity in all cities, 5G connectivity in all counties and broadband connectivity in all villages." Our total computing power ranks second globally. The industrial internet has initially built five major systems: network, identification, platform, data and security. Five years since the issuance of commercial licenses, 5G applications have been integrated into various industries, achieving large-scale promotion in fields such as industry, power, mining, health care and education.

Despite significant industrial progress, China is at a crucial juncture, transitioning from a large industrial player to a strong one through various trials and difficulties. We face challenges, particularly in core technologies of key fields and basic industrial capacities. Many small- and medium-sized enterprises (SMEs) continue to face considerable production and operational difficulties. Therefore, we will continue to deepen reforms, expand opening-up, and ensure both high-quality development and greater security. We will vigorously promote new industrialization, and strengthen the integration between sci-tech innovation and industrial innovation. Additionally, we will accelerate the development of new quality productive forces and build a modernized industrial system driven by sci-tech innovation and underpinned by advanced manufacturing. By making tangible efforts and taking solid steps to perform and excel, we aim to achieve new milestones in high-quality development, thus making greater contributions toward achieving the Second Centenary Goal.

That concludes my introduction. My colleagues and I are now ready to address your questions. Thank you.

Shou Xiaoli:

Now, the floor is open to questions. When asking your question, please begin by stating the media outlet you represent.

Yicai:

Industry is the ballast of the national economy. This year, China’s industrial production has maintained a rapid growth rate. However, there was a decline in May. How do you view the current performance of the industrial sector? What measures will be taken to stabilize industrial growth going forward? Thank you.

Jin Zhuanglong:

Thank you for your question. The development of the industrial sector is receiving wide attention. As I mentioned earlier, last year, China's total value added of industry accounted for 31.7% of GDP, serving as a "ballast" in maintaining stable macroeconomic performance. This year, China's industrial sector got off to a good start, sustaining momentum of rebound and improvement. Notably, from January to May this year, the value added of industrial enterprises above the designated size increased by 6.2% year on year, 1.6 percentage points higher than in 2023. In May, the value added of equipment manufacturing enterprises above the designated size and high-tech manufacturing enterprises above the designated size grew by 7.5% and 10% year on year, respectively.

However, we must recognize that China's industrial sector still faces difficulties and challenges in sustaining its recovery momentum. This is due to the current complex and severe external environment, as well as insufficient effective domestic demand. Moving forward, we will focus on integrating the requirements of high-quality development into the entire process of new industrialization. We will take solid steps to further stabilize growth, ensure security, and facilitate upgrading to consolidate and enhance the recovery momentum of the industrial sector. Our efforts will be concentrated in the following key areas:

First, we will continue to focus on the development of the 10 key industries: steel, non-ferrous metals, petrochemicals, chemicals, building materials, machinery, automobiles, power equipment, light industry, and electronics. These sectors are large in scale, possess strong driving forces, and are highly interconnected, collectively accounting for about 70% of the value added of industrial enterprises above the designated size. Last year, we formulated work plans to stabilize growth in these 10 industries. This year, we will continue implementing these plans and fostering new growth drivers.

Second, we will encourage prominent industrial provinces to take the lead and support them in this endeavor. The combined industrial value added of the 10 major industrial provinces, including Jiangsu and Guangdong, accounts for over 60% of the national total, making them crucial for stabilizing the industrial sector. In the first five months of this year, the growth rates of these 10 provinces all exceeded the national average. Additionally, we are paying particular attention to the 50 prominent industrial cities, more than 10 of which have achieved hard-earned double-digit growth. We will continue to support prominent industrial provinces and cities in consolidating their strengths and taking the lead. We will also support the development and expansion of distinctive and competitive industries in various regions. Beyond major industrial hubs, each province and city boasts its own unique and competitive industrial strengths, and we will provide tailored support to these locales. At the same time, we are mainly focused on nurturing a number of key industrial counties. We will continue supporting the northeastern, central, and western provinces in facilitating industrial relocation and development, enhancing their capacity to absorb relocated industries, and securing a number of major projects.

Third, we will further expand effective investment in manufacturing. We will earnestly implement the measures for industrial equipment upgrades, facilitating advanced equipment renewal, digital transformation, green equipment promotion, and intrinsic safety enhancement. We are also carrying out actions to promote the high-quality development of key manufacturing industrial chains and accelerate the advancement of major national science and technology programs and key national R&D programs. We aim to achieve more substantive and signature outcomes. We will continue to leverage the roles of the national manufacturing industry transformation and upgrading fund, the national integrated circuit industry investment fund, and the national SME development fund. Through these efforts, we aim to guide and attract private capital to key areas and address weak links in developing a modernized industrial system. This approach will help us stay ahead of the curve in future sci-tech and industrial development.

We will also put greater effort into refining the development environment for manufacturing enterprises. To boost the vitality of business entities, we will implement multiple cost-reduction measures for enterprises. Additionally, we'll launch special, effective initiatives to resolve the issue of overdue payments owed to companies. To unlock personal consumption potential, we will launch a nationwide campaign to increase product variety, raise quality, and build product brands. Additionally, we will stimulate spending on high-quality products such as new energy vehicles, green building materials, and smart home appliances in rural areas. To drive industrial upgrading, we will adopt a multi-faceted approach: upgrading traditional industries while consolidating and enhancing competitive industries, nurturing and expanding emerging industries, and planning for future industries with a forward-looking vision.

That's all for my answer. Thank you.

Zhonghongwang.com:

The central authorities have initiated a large-scale equipment upgrading initiative. How will the MIIT seize the opportunity for this new round of industrial equipment upgrading? How will you apply new technologies and equipment to accelerate the transformation and upgrading of traditional industries? Thank you.

Jin Zhuanglong:

Mr. Xin will answer this question.

Xin Guobin:

People generally place a lot of importance on the development of strategic emerging industries and disruptive technologies, so thank you for your interest in the transformation and upgrading of traditional industries. Traditional industries usually refer to those that have been developed for a long time, have a large industrial scale, broad market demand and strong employment absorption capacity, and are primarily labor- and capital-intensive. These industries play a fundamental role in the national economy, and mainly include petrochemicals, chemicals, steel, non-ferrous metals, building materials, machinery, light industry and textiles. The main indicators of these industries, such as added value, revenue, profit and employment numbers, account for about 80% of the entire manufacturing sector. The products they produce are indispensable in our daily lives. Therefore, traditional industries are the foundation of the modern industrial system and the fundamentals of our manufacturing development. We must promote the transformation and upgrading of these traditional industries and absolutely not treat them as "low-end industries" to simply be phased out.

Since last year, the MIIT, together with relevant departments such as the National Development and Reform Commission and the Ministry of Finance, successively issued the Guidance on Accelerating the Transformation and Upgrading of Traditional Manufacturing Industries and the Implementation Plan for Promoting Equipment Renewal in the Industrial Sector. In the coming period, our key task will be to focus on the implementation of these two documents, targeting high-end, intelligent, green and integrated development directions. We will support pilot cities in new technology transformation, implement major technical transformation and upgrades and large-scale equipment renewal projects in the manufacturing industry, and help these traditional industries "sprout new branches," making them important carriers for new quality productive forces.

In terms of equipment renewal, we will focus on key industries, adhere to market-driven advancement and standardization, implement integrated renewal of advanced equipment and software, and eliminate a batch of inefficient and outdated equipment.

In terms of technological upgrades, we will continuously promote technological innovation in industry, encourage research of key generic technologies and demonstration of industrial applications for traditional industries, strengthen innovation and iteration of new technologies and products, and strive to increase varieties, improve quality and build brands.

In terms of digital empowerment, we will implement the digital transformation of the manufacturing industry, accelerate the deep integration of traditional industries with digital technologies such as artificial intelligence, big data, cloud computing and 5G, promote the application of intelligent equipment such as industrial robots and intelligent logistics, and support the construction of a batch of smart factories, digital supply chains and parks.

In terms of green development, we will solidly advance energy-saving and carbon-reducing transformations in key industries, accelerate the renewal and replacement of key energy-consuming equipment such as electric motors and boilers, expand the application of solid waste treatment and water-saving equipment, build a batch of green factories, and actively develop green and low-carbon industries.

In terms of safety guarantees, we will accelerate comprehensive technical renovations of old installations in the petrochemical industry, implement the principle of "mechanization, automation and robots replacing humans" in the civilian explosives industry, increase the promotion and application of safety technologies and equipment in the manufacturing industry, and enhance the intrinsic safety level of enterprises.

That is all for my answer. Thank you.

The New Times:

In recent years, information and communication technology has developed rapidly. China has built a technologically advanced 5G network, and both enterprises and the public have experienced its tangible convenience. Could you please brief us on the overall development of China's information and communication industry and the key areas of focus going forward? Thank you.

Jin Zhuanglong:

Thank you for your question. As I mentioned earlier, China's information and communication industry has been developing rapidly in recent years, and the commercialization of 5G has achieved good results. I would like to invite Mr. Zhao to answer this question.

Zhao Zhiguo:

Thank you for your question. As everyone knows from experience, in recent years, the development of China's information and communication industry has been rapid, with its strategic, foundational and pioneering roles becoming more prominent. Let me further explain it from the following aspects:

We have built a globally leading information and communication network. Broadband networks have rapidly increased from 10 megabits to 100 megabits, and now to 1 gigabit. All prefecture-level cities nationwide have been built into fiber-optic network cities, achieving "gigabit connectivity in all cities." Gigabit users account for more than 70% globally. We have built 3.837 million 5G base stations, achieving "5G connectivity in all counties," and the 5G user penetration rate has now exceeded 60%. By implementing universal telecom services, all administrative villages nationwide have achieved "broadband connectivity in all villages," and more than 90% of administrative villages have access to 5G. Network resource supply continues to expand, with nearly 20 million national top-level domain name registrations, the highest in the world. China ranks second globally in the total number of IPv4 and IPv6 addresses, and our computing power has reached 230 EFLOPS, capable of performing 230 quintillion floating-point operations per second, ranking among the top in the world.

We have formed a comprehensive and competitive industrial system. China's mobile communication industry has explored and developed a model featuring forward-looking research, standards-driven development, system innovation, solid network foundation and application empowerment. Currently, China accounts for 42% of the world's declared standard-essential patents for 5G, and our global market shares of 5G base stations and cellphones both exceed 50%. The resilience of the industrial chain continues to improve, providing strong support for high-quality economic and social development.

We have cultivated a thriving digital consumption market. Some of you may know that China fully connected to the international internet in 1994, with just a single 64 Kbps line, which was very slow. Since April 20, 1994, after 30 years of development, we now have 1.09 billion internet users, forming the world's largest digital consumption market. In 2023, China's online retail sales reached 15.42 trillion yuan, ranking first in the world for 11 consecutive years. Mobile payments, which everyone uses daily, have grown by 239 times compared to 2012. Revenue of the software industry has exceeded 12 trillion yuan, maintaining double-digit growth for 23 consecutive years.

We are committed to creating an innovative and vibrant ecosystem for industry applications. We believe that the creation and development of such an ecosystem is of paramount importance. 5G industry applications have been integrated into 74 major categories of the national economy. We have successfully established 30,000 5G virtual private networks, 300 5G factories, and over 13,000 "5G plus industrial internet" projects. As we all know, 5G itself is an enabling technology, and the industrial internet has wide-ranging applications. Consequently, the synergy of "5G plus industrial internet" has become increasingly prominent. We have established the OpenAtom Foundation, and high-quality open-source projects such as OpenHarmony and openEuler are beginning to gain recognition on the global stage. The basic telecommunications network continues to operate safely and stably. We are constructing and developing security capabilities for new infrastructure such as the industrial internet and the internet of vehicles. Furthermore, we have essentially constructed a data security management system for the industrial sector.

Moving forward, we will focus on "construction, application, and research" to coordinate, promote, and accelerate the high-quality development of the information and communication sector. "Construction" means consolidating network facilities, steadily advancing the construction of 5G and gigabit optical networks, orderly promoting the upgrading of 5G networks to lightweight 5G and 5G-A (5G-Advanced), and solidly promoting the development of the computing industry. As we all know, computing power is now developing rapidly as a resource. At the same time, we are implementing the "signal upgrade" special initiative to further enhance 5G coverage at cultural tourism sites, healthcare facilities, universities, transportation hubs, subways and other locations. "Application" means deepening integrated applications, introducing follow-up policies to develop "dual gigabit" networks and applications, accelerating the construction of 5G factories, and creating an upgraded version of "5G plus industrial internet." "Research" means strengthening technical R&D and coordinating the evolution of 5G-A and 6G innovation. As we all know, 6G development is also accelerating, with advanced planning for ultra-high-speed optical transmission and next-generation optical networks. There is great potential for the development of optical networks in the future. At the same time, we will systematically promote pilot programs to expand the opening-up of value-added telecom services, such as data centers. We will also strengthen exchanges and cooperation with international open-source organizations to jointly create high-quality open-source projects and implement their results.

That is all for my introduction. Thank you.

People's Posts and Telecommunications News:

Recently, a State Council executive meeting reviewed and adopted an action plan for the digital transformation of the manufacturing sector. All localities are actively taking steps to implement this digital transformation. Could you please brief us on the relevant work and the focus for the next stage?

Jin Zhuanglong:

Thank you for your question. A few days ago, Premier Li Qiang chaired a seminar on the digital transformation of manufacturing in Jiangsu province. The digital shift in manufacturing is now progressing further. I would like to invite Mr. Xin to address this question.

Xin Guobin:

Thank you for your interest in the digital transformation of the manufacturing sector. This transformation is indeed an important direction for the high-quality development of the manufacturing industry. In recent years, with widespread attention and support from all parties, China has made significant progress in digitally transforming its manufacturing sector, creating favorable conditions for promoting high-end, intelligent, and green development. Allow me to share some key sets of data with you. China's installed industrial robot capacity now accounts for more than 50% of the world's total. The industrial internet has achieved full coverage of major industrial categories, and 421 national-level demonstration factories for smart manufacturing have been cultivated, all built according to Chinese standards. As of the end of last year, out of 153 lighthouse factories in the world, 62 were in China, accounting for more than 40% of the total. These lighthouse factories were built by both multinational and local companies. In terms of effectiveness, the product development cycle of demonstration factories in the fields of large aircraft, new energy vehicles, and high-speed electric multiple units (EMUs) has been shortened by about 30%. Production efficiency in these factories has increased by nearly 30%. It's fair to say that many manufacturing companies, once equipped with these "digital wings," have been able to fly faster and more efficiently than their counterparts.

Not long ago, a State Council executive meeting reviewed and adopted an action plan for the digital transformation of the manufacturing sector. This plan defines the objectives and pathways for systematically promoting this transformation. The MIIT will collaborate with all localities and departments to implement the action plan, making simultaneous efforts in "dots, lines and fields." We will strive to achieve full coverage of digital transformation for industrial enterprises above designated size in major industrial provinces, cities and key industrial parks by 2027. Moreover, we will build approximately 200 high-standard digital industrial parks. By 2030, we will strive to basically complete a round of digital transformation for all industrial enterprises above designated size. To be specific:

"Dots" means focusing on key enterprises and promoting digital and intelligent transformation. We will prioritize leading enterprises in industrial chains and specialized, innovative SMEs. Our primary aim is to promote digital transformation in equipment manufacturing enterprises, large-scale durable consumer goods manufacturers, and enterprises undertaking large-scale equipment renewal. We will support enterprises with a solid digital foundation to innovate digital integrated applications. Additionally, we'll guide enterprises with a high level of digitalization to construct smart factories in a tiered manner.

"Lines" means focusing on key industrial chains and promoting coordinated digital transformation. We will formulate implementation plans for the digital transformation of key industries, adopt a "one chain, one strategy" approach to carry out coordinated digital transformation across key industrial chains in the manufacturing sector, and promote typical scenarios and solutions for segmented industries. We will support chain leaders and leading enterprises to open data interfaces, guide supply chain enterprises to access these systems and create a number of digital supply chains.

"Fields" means focusing on key industrial clusters and parks, with the aim of building a number of high-standard digital industrial parks. We will launch the construction of high-standard digital industrial parks, streamline the data, innovation, industrial, and supply chains within these parks, and explore pathways for overall digitalization improvements across these parks. We will continue to implement actions to cultivate and improve national advanced manufacturing clusters, promoting national clusters to take the lead and set examples in digital transformation.

That is all for my introduction. Thank you.

CCTV Business Channel:

We have noticed that in recent years, various technological innovations have developed rapidly. Emerging industries like AI and future industries like humanoid robots are receiving much attention. What measures will the MIIT take to promote these industries? Thank you.

Jin Zhuanglong:

Thank you for your question. As the reporter mentioned, new fields such as AI and humanoid robots are emerging with the ongoing technological revolution and industrial transformation. Countries worldwide are planning and positioning themselves for the future, and China is actively exploring these areas. Indeed, AI is injecting new momentum into economic and social development, profoundly changing how we live and work. The 2024 World Artificial Intelligence Conference and High-level Meeting on Global Governance of AI opened in Shanghai yesterday. Premier Li Qiang attended and delivered a speech, and the Shanghai Declaration on Global AI Governance was issued. From the perspective of industry and information technology, we must seize the opportunities brought by the technological revolution and industrial transformation to deeply integrate sci-tech innovation with industrial innovation. By prioritizing green, intelligent, and integrated development, we encourage enterprises to plan for the future and proactively invest, build new advantages for future development, and ensure the deep integration of sci-tech and industrial innovation.

We should cultivate and expand emerging industries. Strategic emerging industries in China account for about 13% of GDP, offering enormous growth space and potential. For advantageous industries like 5G, new energy vehicles, photovoltaics, and lithium-ion batteries, we need to accelerate the strengthening, extension, and supplementation of industrial chains, further enhance technological advantages, expand market scale, and improve the competitiveness of the entire industrial chain. For emerging industries such as new materials, AI, intelligent connected new energy vehicles, new energy storage, hydrogen energy, biomanufacturing, commercial aerospace, and the low-altitude economy, we need to continue leveraging China's vast domestic market and rich application scenarios. We must systematically promote technological innovation, large-scale development, and industrial ecosystem construction to cultivate a batch of leading enterprises with strong dominance across the entire ecosystem and form more emerging pillar industries that can lead to industrial upgrading.

We also need to plan ahead for future industries. In January, in collaboration with the education and science and technology departments, we jointly issued guidelines on promoting the innovative development of future industries. These guidelines focus on six areas: future manufacturing, future information, future materials, future energy, future space, and future health, laying the groundwork for their development. Next, focusing on these six directions — primarily humanoid robots, brain-computer interfaces, the metaverse, next-generation internet, 6G, quantum technology, atomic-level manufacturing, and deep-sea and space development — we will implement a series of scientific research projects, achieve significant advancements in key core technologies, develop iconic products, achieve landmark accomplishments, and establish enterprise incubators. We will support regions with the necessary conditions to take the lead in developing typical application scenarios, explore the construction of pilot zones for future industries, and cultivate more high-tech enterprises, unicorn enterprises, and innovative SMEs that use special and sophisticated technologies to produce novel and unique products.

Thank you.

Hong Kong Bauhinia Magazine:

Dynamic SMEs are an important guarantee of the resilience of China's economy. What are your plans and specific measures to promote SMEs to develop in the direction of using special and sophisticated technologies to produce novel and unique products? Thank you.

Jin Zhuanglong:

Thank you for your question and your interest in the development of SMEs. General Secretary Xi Jinping has attached great importance to the development of SMEs, stating that "SMEs are important to each household and have been a vital force to advance innovation, facilitate employment and improve people's livelihood." He highlighted that "China's SMEs are smart, full of vitality and good at braving challenges and striving for greatness." The general secretary called for nurturing more specialized and sophisticated SMEs that could produce novel and unique products. By the end of June, we had cultivated over 140,000 such SMEs, including 12,000 "little giant" enterprises. We are committed to consolidating and developing the public sector while encouraging, supporting, and guiding the development of the non-public sector, focusing on four key aspects: service, management, development, and support. Specifically, we will continue to emphasize both service and management, as well as development and support. We need to enhance the reputation of "innovative enterprises that use special and sophisticated technologies to produce novel and unique products" to support the high-quality development of SMEs. Here, I would like to highlight four measures:

The first measure is to increase support for nurturing innovative SMEs that use special and sophisticated technologies to produce novel and unique products. We have issued several measures to support the high-quality development of these SMEs. In collaboration with the Ministry of Finance, we support the "little giant" enterprises to create new momentum, tackle new technologies, develop new products, and strengthen their supporting capabilities within the industrial chain. This is because many of these SMEs are involved in the supply chains of large enterprises, which are typically the anchor companies and leading enterprises, these SMEs can play a crucial supportive role in these chains. We have also collaborated with the State-owned Assets Supervision and Administration Commission of the State Council and other departments to implement joint innovation actions between large, medium, and small enterprises. Many centrally-administered state-owned enterprises (SOEs) are anchor companies, and we encourage SMEs to participate in these joint innovation actions. Additionally, we have empowered the National SME Development Fund to attract social capital for early, small-scale investments in innovative SMEs that use special and sophisticated technologies to produce novel and unique products.

The second measure is to accelerate the digital transformation of SMEs. We have been thoroughly implementing the special campaign for the digital empowerment of SMEs and have launched city pilots for their digital transformation. By 2027, we aim to achieve full digital transformation coverage for "little giant" enterprises and accelerate the digital transformation of innovative SMEs that use special and sophisticated technologies to produce novel and unique products. We will expedite the provision of digital services, support large enterprises in sharing their resources and capabilities with SMEs, and vigorously develop digital products and solutions that are small, fast, lightweight, and precise. These efforts will help reduce transformation costs and enable more SMEs to undertake, successfully navigate, and excel in digital transformation.

Third, we have focused on cultivating characteristic industrial clusters for SMEs. China has developed 200 national SME characteristic industrial clusters and plans to approve and confirm approximately 100 more this year. Meanwhile, we have encouraged various regions to focus on developing industry-oriented county economies based on their characteristic and competitive industries and to establish provincial-level clusters according to local conditions.

Fourth, we have strived to build an efficient and high-quality SME service system. We are committed to providing quality government services to SMEs and creating a sound development environment for enterprises. We have improved the public service systems, leveraged the role of market-oriented service agencies, and coordinated various factors, including rolling out policies to benefit businesses, improving environment to unleash business dynamism, providing quality services to support businesses, building the strength of businesses through innovation, and relying on talent to support enterprise development. We have accelerated the construction of a nationwide service network for SMEs, facilitating connectivity at national, provincial, municipal, and county levels. We've integrated various service resources, including government and market-based services. This aims to provide SMEs a "one-stop" service, helping them lower costs, improve quality, and increase efficiency in tangible ways. Thank you.

Thecover.cn:

The industrial sector is one of the major carbon emitters. What achievements have been made in saving energy and reducing carbon emissions? How can the green transformation in industry be accelerated? Thank you.

Jin Zhuanglong:

Thank you for your questions. Green development is a key direction for industrial growth. Our industrial development focuses on being high-end, intelligent, and green. Mr. Zhao will now address these questions.

Zhao Zhiguo:

Thank you for your interest in the green development of the industrial sector. Industry has consistently been a key area for energy consumption and carbon emissions in China. Green and low-carbon development represents an important trend in the new revolution in science, technology and industry. Promoting green and low-carbon development in the industrial sector is an intrinsic requirement for accelerating new industrialization.

In recent years, we have thoroughly implemented actions to enhance industrial energy efficiency, promoting the reasonable and efficient use of energy by industrial enterprises in accordance with laws and regulations. This has yielded significant results. In the first two years of the 14th Five-Year Plan, the energy consumption per unit of added value of industrial enterprises above the designated size nationwide cumulatively decreased by 6.8%. Energy-intensive industries have been transferred in an orderly manner to regions with clean energy advantages. By the end of 2023, we had cultivated 196 national-level green data centers, with the average utilization rate of electricity generated from renewable energy sources increasing from 15% in 2018 to over 50%. Additionally, the energy consumption per 5G base station site has decreased by more than 20% compared to the early stages of commercial use. Meanwhile, the scale and technological level of new energy vehicles and new energy equipment have rapidly improved, with new orders for green ships accounting for 57% of the global total.

Next, we will firmly uphold and act on the principle that lucid waters and lush mountains are invaluable assets. We will implement plans for peaking carbon dioxide emissions in the industrial sector and accelerate the green transformation of the industry. Our efforts will focus on the following three main areas:

First, in promoting green and low-carbon transformation, we will deeply implement energy-saving and carbon-reducing actions, primarily targeting key industries such as steel, non-ferrous metals, petrochemicals, and building materials, as well as key sectors like data centers and communication base stations. We will synergistically advance digital and green transformations to enhance energy utilization efficiency. We will support enterprises in building a number of digital energy and carbon management centers. Additionally, we will accelerate the establishment of a resource recycling system, promote large-scale and high-value utilization of industrial solid waste and renewable resources, and improve the security and assurance of resource supply.

Second, in building a green manufacturing system, we will introduce an action plan for the green and low-carbon development of the manufacturing industry, implement green manufacturing projects, and cultivate green factories and green industrial parks. We will pioneer the development of green supply chains in sectors such as aviation, shipbuilding, new energy vehicles, and energy electronics. We will actively explore effective methods for managing the carbon footprint of industrial products and promote the development of carbon footprint accounting standards for key products.

Third, in cultivating and expanding green industries, we will strengthen the development and supply of green and low-carbon technology and equipment products. We will accelerate the development of green and low-carbon industries such as hydrogen energy, new ways of storing energy, eco-friendly equipment, green intelligent computing, and smart microgrids, continuously creating new competitive strengths for the industry. Thank you.

Xinhua News Agency:

I am particularly interested in the deepening of reforms in the industrial sector. Could you please share what measures the MIIT has implemented in recent years to comprehensively deepen reforms? What are the plans for the next steps? Thank you.

Xin Guobin:

Reform and opening-up is the driving force for the development of China. Since the 18th National Congress of the CPC, the MIIT has faithfully implemented the major decisions and plans of the CPC Central Committee and the State Council on deepening reforms across the board. We have developed and promoted a series of reform measures, providing strong support for advancing new industrialization. I will now introduce four key aspects of these efforts.

For example, we have accelerated the deep integration of digitalization and industrialization. We have completed a series of top-level design tasks, including the deep integration of next-generation information technology and manufacturing, artificial intelligence-empowered new industrialization, and the digital transformation of manufacturing. We have planned and implemented smart manufacturing projects and the innovative development strategy of industrial internet, promoting the widespread application of next-generation information technology across the entire industry and value chain of manufacturing. The overall effect has been very significant, with new models and formats such as flexible and custom-tailored production, smart factories, and service-oriented manufacturing continuously emerging. The modes of production and the forms of enterprises in the manufacturing industry are undergoing fundamental changes.

For example, we have vigorously promoted industrial technology innovation. By implementing major national science and technology projects and key programs such as rebuilding the industrial foundation and developing important technologies and equipment, we are fully leveraging the advantages of a new system for mobilizing nationwide resources to build a modern industrial system driven by sci-tech innovation. Mr. Jin just mentioned the achievements in the development of large aircraft. Through the development of the C919 large passenger aircraft, we have established a large aircraft industry system centered on the Commercial Aircraft Corporation of China, in collaboration with the Aviation Industry Corporation of China, which spans the entire country and aims at the global market. We steadily advanced the innovative development of mobile communications, explored and formed a development model highlighting advanced research, standardization, system innovation, network development and application utilization, and achieved leapfrog development – in the 2G era, we were merely a follower; in the 3G era, we realized breakthroughs; in the 4G era, we caught up with the world; and now in the 5G era, we are the leader.

For example, we have adhered to promoting reform through opening-up. In the manufacturing sector, China has already announced the complete removal of market access restrictions on foreign investment in manufacturing, welcoming foreign enterprises to invest and deepen their presence in China to enjoy China's development opportunities. In the telecommunications sector, we are steadily advancing opening-up. Recently, we have arranged to further expand the opening-up of value-added telecommunication services such as data centers in four regions, including Beijing. By the end of June this year, the number of foreign-invested enterprises operating in China's telecommunications sector had reached 2,037.

For example, we have resolutely implemented the principle of unswervingly consolidating and developing the public sector while encouraging, supporting and guiding the development of the non-public sector. We encourage various types of enterprises to compete and complement each other with their own advantages. We are continuously advancing the transformation of government functions and innovating regulatory approaches, making strengthening services for enterprises an important responsibility in industry management. We have established and improved regular communication and exchange mechanisms with manufacturing enterprises and innovative, high-tech SMEs, fully listening to their opinions and suggestions to stimulate their motivation and vitality. We have supported the deepening of reforms to state-owned enterprises in the manufacturing sector to enhance their core competitiveness and core functions, creating important equipment for the development of the country. We have revised the "Law on Promotion of Small and Medium-sized Enterprises" and issued regulations on ensuring payments to SMEs, building a mechanism for nurturing high-quality enterprises in tiers, promoting specialized, refined and innovative enterprises, and enabling more high-quality enterprises to stand out.

Moving forward, we will thoroughly study and implement the principles of the upcoming third plenary session of the 20th CPC Central Committee. By taking solid steps and delivering tangible results, we will ensure the effective implementation of reforms, continuously adding new momentum for development and expanding new development spaces. Thank you.

Shou Xiaoli:

Due to the limited time, we will take two final questions.

CMG Voice of China:

We have noted that at the national science and technology conference held recently, the innovative achievements in the fields of new energy vehicles, BeiDou navigation, large aircraft and high-speed railways were particularly eye-catching. The MIIT has frequently mentioned industrial technology innovation. What measures will be taken to continue advancing these efforts? Thank you.

Jin Zhuanglong:

Thank you for your interest in industrial technology innovation. This is of great significance to the development of the manufacturing industry. At the national science and technology conference held recently, General Secretary Xi Jinping fully recognized innovative achievements in fields such as artificial intelligence, new energy vehicles, BeiDou navigation, large aircraft and high-speed railways, pointing out that China had taken new strides in strategic high-tech fields, and emphasizing the promotion of deep integration between innovation in science and technology and industrial innovation so as to help develop new quality productive forces. Focusing on building industrial technology innovation systems, we will improve innovation abilities and solidify the foundation of new-type industrialization. In the field of industry and information technology, we will make efforts in the following four aspects:

We will center on four points in key and core technological breakthroughs. First, we will implement major national science and technology projects, fully leverage advantages of a new system for mobilizing nationwide resources, address shortcomings, strengthen advantages and accelerate breakthroughs in key core technologies. Second, we will effectively implement national key research and development programs, strengthening basic research, frontier technologies and application demonstrations. Third, we will effectively implement the industrial foundation reengineering project to enhance the quality and competitiveness of basic components, basic electronic components, basic software and basic materials. Fourth, we will implement research projects on major technologies and equipment, focusing on making breakthroughs in a number of strategic equipment.

In strengthening the principal role of enterprises in innovation, we will fully leverage the leading role of top-tier technology enterprises and key enterprises in various industrial chains, map out more national innovation platforms at enterprises, and encourage and support capable enterprises to undertake national science and technology innovation projects. We will accelerate the development of high-tech enterprises and innovative SMEs, guide more innovative elements such as talent, capital and technology to gravitate towards enterprises, and encourage and support manufacturing enterprises to closely cooperate with universities and research institutions to jointly conduct scientific research and cultivate scientific and technological professionals.

Regarding platform construction, China has built 30 state-level manufacturing innovation centers, which have played an important role in making breakthroughs in key generic technologies. Next, we will intensify efforts and further optimize the structure, focusing on emerging fields such as biomanufacturing and building more national manufacturing innovation centers. We will concentrate on key areas, including electrical information, fine chemicals, and important equipment, and plan and construct platforms for pilot experiments and application verification. These efforts will provide more robust support for technological iteration, process improvement, and product innovation.

In terms of improving and enhancing sci-tech services, we will issue policies and measures to promote the high-quality development of the sector, expand the market, foster internationalized sci-tech intermediaries, and facilitate the transformation of sci-tech achievements into products and industries. We will implement a project to promote excellence in manufacturing quality, advance the program to improve the standardization of emerging industries and cultivate renowned Made-in-China brands. Thank you.

Shou Xiaoli:

One last question.

Beijing Radio and Television Station:

National high-tech industrial development zones, like Beijing's Zhongguancun and Shanghai's Zhangjiang, have attracted many high-tech enterprises and high-end industries. These zones serve as important examples and guiding forces. I'd like to ask how these high-tech zones are currently performing. Additionally, what are your plans to further promote their high-quality development? Thank you.

Jin Zhuanglong:

Thank you for your questions. People are familiar with these national high-tech zones. They are sci-tech industrial zones approved by the State Council to develop high-tech industries and promote the commercialization of scientific and technological achievements. There are 178 national high-tech industrial development zones across the country, with unique advantages in innovation capability, business strength, and industrial competitiveness. I will provide a set of data to demonstrate their strengths. Currently, national high-tech industrial development zones account for more than 20% of total industrial value added in the country. They have gathered 30% of all high-tech enterprises and 40% of “little giant” enterprises with high growth potential, advanced technology and strong market competitive edge. These zones account for 50% of enterprise R&D expenditures and invention patents. They have also gathered 60% of listed companies on the sci-tech innovation board, 70% of national manufacturing innovation centers, and 80% of national key laboratories. These high-tech zones have developed a number of strategic industries, including high-end equipment, new materials, and new-generation information technology, becoming the backbone for fostering national advanced manufacturing industrial clusters.

The core mission of these high-tech zones is to develop advanced technologies and achieve their industrialization. In light of new circumstances and requirements, their key task is to cultivate and develop new quality productive forces. Therefore, to drive high-quality development, national high-tech zones should focus on developing advanced technologies, achieving industrialization, and accelerating the formation of new quality productive forces. We will build upon our good practices, solidify our efforts, innovate, and accelerate the construction of top-class high-tech industrial zones. Our goal is to create hubs of industrial sci-tech innovation. National high-tech zones will serve as good examples of innovation-driven development, vanguards of new quality productive forces, and pioneers of high-quality development. The focus will be on three aspects:

First, we will enhance industrial sci-tech innovation capabilities. We will map out more innovation platforms in national high-tech zones, including national manufacturing innovation centers, large-scale scientific facilities, and key laboratories. We will develop various platforms for pilot experiments and verification and incubators for highly competitive enterprises to attract and cultivate more top-level talents and innovation teams. We will support the undertaking of major sci-tech projects and key R&D programs. We will foster world-class and leading sci-tech enterprises. We will also implement an initiative to promote collaborative innovation between national high-tech zones, universities, and university sci-tech parks.

Second, we will enhance and expand dominant industries. Guided by sci-tech innovation, we will coordinate the development of traditional, emerging, and future-orientated industries. We will accelerate the construction of digitalized and eco-friendly industrial zones to create world-class advanced manufacturing clusters. We aim to create new development opportunities and build industrial coordinated innovation networks. We will develop and open up important application scenarios, and guide suitable high-tech zones to build pilot areas to develop future-oriented industries.

Third, we will improve the operational framework for national high-tech zones. We shall ensure that the principal responsibility of constructing national high-tech zones is effectively fulfilled, coordinating various resources and elements, including science and technology, education, industries, human resources, and financing. We will also further improve the structure of these zones, with plans to elevate a number of provincial-level high-tech zones to national status. We will explore targeted policies for national independent innovation demonstration zones with distinctive features. We will also improve the comprehensive appraisal system for national high-tech zones and establish all-in-one administrative service platforms. Furthermore, we will upgrade the Torch Program for high-tech industry development. That's all I have to share. Thank you.

Shou Xiaoli:

Thank you, Mr. Jin. Thank you to all speakers and journalists for participating. The press conference is hereby concluded. See you next time.

Translated and edited by Wang Yiming, Yuan Fang, Xu Xiaoxuan, Wang Yanfang, Mi Xingang, Zhou Jing, Yan Bin, Guo Yiming, Li Huiru, Qin Qi, Liu Jining, Liu Sitong, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.