.

Speakers: 

Zhong Shan, minister of commerce

Wang Shouwen, vice minister of commerce, deputy China international trade representative

Qian Keming, vice minister of commerce 

Chairperson: 

Xi Yanchun, person in charge of the Press Center for Celebration of the 70th Anniversary of the Founding of the People's Republic of China 

Date: 

Sept. 29, 2019 

Xi Yanchun, person in charge of the Press Center for Celebration of the 70th Anniversary of the Founding of the People's Republic of China: 

Ladies and gentlemen, media friends, good afternoon. Welcome to this press conference. China's commerce sector has undergone an eventful history and has made remarkable achievements in the past 70 years. 

Today, we are delighted to invite Mr. Zhong Shan, minister of commerce, to introduce the work related to pursuing higher-quality opening-up and development of high-quality commerce. Also with us today are: Mr. Wang Shouwen, vice minister of commerce and deputy China international trade representative, and Mr. Qian Keming, vice minister of commerce. 

Now, I give the floor to Mr. Zhong Shan. 

Zhong Shan: 

Thank you, madam. Media friends, good afternoon. First of all, on behalf of the Ministry of Commerce, I want to thank you for your attention and support for our work. 

In the past 70 years, tremendous changes have taken place in China. The commerce sector has made many brilliant achievements. In particular, after the 18th National Congress of the Communist Party of China (CPC), under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, people working in the commerce sector have remained true to our original aspirations, always bearing our overall mission firmly in mind. We have been committed to carrying out reform and opening up. We have worked hard to promote new development and make new breakthroughs. China's role as a major trading nation has been consolidated. The commerce sector has recorded high-quality and steady development, making great contributions to national economic and social development. 

Let's look at these contributions from five perspectives. 

First, consumption has improved substantially. In the initial years after the founding of the PRC, the country suffered from a severe shortage of resources. Seven decades later, the supply of commodities has become increasingly abundant, and the scale of consumption has continuously enlarged. The annual retail sales of consumer goods rose from 27.7 billion yuan in 1952 to 38 trillion yuan in 2018, making China the second largest consumption market in the world. The upgrading of consumption has been accelerated. Service consumption takes an ever-larger proportion of the whole. The consumption potential of rural areas has been unleashed. New business forms like online shopping have undergone fast development. In 2018, total online retail sales online reached 9 trillion yuan. Consumption has become the top driver of economic growth for five consecutive years, and its role as the foundation of economic growth has been enhanced. 

Second, China's foreign trade ranks the first in the world. In the initial years, the country struggled to conduct foreign trade in the face of a blockade by foreign countries. In 1957, we founded the Canton Fair, also known as the China Import and Export Fair, in Guangzhou, which served as a window linking China with the world. After the reform and opening up, especially after admission to the World Trade Organization (WTO), China's foreign trade has undergone continuous, fast development. The volume of the country's imports and exports was merely $1.13 billion in 1950. However, in 2018, it was $4.6 trillion, making China the world's largest trading nation. The trade structure has been steadily improved. Machinery, electronic and other high-tech products have taken a lion's share of exports. Private enterprises have become a major force in foreign trade. The structure of imports and exports has achieved a better balance, as has trade in goods and service. The annual volume of imports has surpassed $2 trillion. Foreign trade has played an important role in boosting economic growth, enlarging employment, improving the public livelihood, etc., creating over 180 million jobs directly or indirectly. 

Third, the amount of inbound foreign investment leads the world. From special economic and development zones to free trade zones and free trade ports, from a positive list to negative one, from the three separate laws on foreign investment to the all-embracing Foreign Investment Law, China has opened ever wider to the world. The domestic business environment has become increasingly mature. The country has become a hot destination of foreign investment, with more being utilized. In 2018, China attracted foreign investment worth $138.3 billion, ranking second in the world. By the end of last year, the total foreign investment utilized reached $2.1 trillion. Approximately 960,000 foreign enterprises have set up operations in China. The quality and level of foreign investment have both been improved. The proportion of foreign investment in the high-tech and service industries have risen remarkably. Since last year, a batch of major foreign investment projects were launched. Foreign enterprises contribute nearly 20% of the country's tax revenue, playing an important role in stimulating innovation, boosting industrial upgrading, etc. 

Fourth, China's outbound investment, once lagging far behind, has caught up. China started late in making such investment. However, from the strategy of going global to the Belt and Road Initiative (BRI), more and more Chinese enterprises have gone abroad to invest or conduct business. Chinese enterprises now can be found all over the world. Starting from scratch, outbound investment has prospered gradually. In 2018, the country's outbound FDI reached $143 billion, ranking second in the world. By the end of last year, the stock of China's outbound investment approached $2 trillion, and approximately 43,000 Chinese enterprises had set up offices overseas. Outbound investment and international cooperation have created new space for the development of Chinese enterprises, and stimulated China's manufacturing industry and service industry to go global. Meanwhile, China's investment has also greatly boosted the economic and social development of foreign countries. 

Fifth, the capability of participating in global economic governance has been continuously enhanced. Upholding the global governance principles of making joint efforts through consultation to bring benefits to all, we have promoted opening and cooperation in the world, and pursued mutual benefits and win-win results. China's position and influence in the world have risen constantly. The country is getting near to the center of the international stage. The BRI has received a positive response from over 160 countries and international organizations, and won high praise from international community. We have been committed to multilateral trade systems, and promoted a reform of the WTO. We have signed 17 free trade agreements. We have voiced our views on various platforms like the G20, Asia-Pacific Economic Cooperation, and the BRICS. We have made various proposals, and worked for the building of an open world economy, and for the building of a community with a shared future for humanity. We proposed to found the Asian Infrastructure Investment Bank, and successfully held the China International Import Expo, providing more international public goods for the world. 

The struggle and achievements made in the past 70 years have laid a solid foundation and gathered precious experiences for our development. In the new era, in face of major transformation the world has not seen for a century, we must follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era to implement a new development philosophy, further promote the development of the domestic market, pursue higher-level opening-up and high-quality commerce development, so as to make a greater contribution to the fulfillment of the "two centenary goals" and the realization of the Chinese Dream of national rejuvenation. 

Thank you. Now, I'd like to take your questions with my colleagues. 

Xi Yanchun: 

Thank you, Mr. Zhong Shan. The floor is open to questions. Please identify your news organization before raising questions.

Phoenix TV:

My question is about foreign trade. Faced with a complicated international situation, China's foreign trade has come under a lot of pressure and faced many challenges. What measures have the Ministry of Commerce taken to stabilize foreign trade this year? Will there be more measures in the future? Thank you. 

Zhong Shan:

Thanks for your question. As you just said, we have faced many unprecedented challenges in foreign trade both externally and internally. Foreign trade is one of the six main areas the country is aiming to stabilize, the other five being "employment, finance, foreign investment, investment and expectations." 

The first measure is to stabilize the volume of foreign trade. We have pushed forward the announcement of new measures to stabilize trade, improve our services and increase trade facilitation. Chinese companies have encountered many difficulties, especially amid economic and trade frictions. However, through technological upgrades and innovation, quality improvement, market expansion and improved marketing network, their competitiveness has constantly increased. 

In the first eight months of this year, the import and export volume reached 20.1 trillion yuan, up 3.6%. Globally, China's export growth has outpaced other major economies. The country's foreign trade has achieved generally stable growth. 

The second measure is to improve quality. Export of high tech, high quality and high value-added products is increasing rapidly. New foreign trade business forms are also growing rapidly. For example, the import and export of cross-border e-commerce retail sales increased by 20%. 

The third aspect is to upgrade the structure. Our export structure is diversifying in the global market. The proportion of exports to the Belt and Road countries has reached 30.1%. The export commodity structure is also becoming optimized. The proportion of exports of machinery and electronic products has reached 57.9% of the total, and that of high-tech products reached 28.3%. Private businesses are also becoming more dynamic with exports accounting for over half of their overall production, around 51.4%. 

For the next step, we will focus on the following three areas. First, accelerate the implementation of policy measures to stabilize growth so as to achieve quick results. Second, work hard to improve market diversity. In our efforts to co-build the Belt and Road, we are encouraging Chinese companies to expand into emerging markets and improve their international marketing network. Third, we are seeking high quality development. We will strengthen technological and institutional innovation, and undertake new explorations in regard to business models and business forms. We will strengthen general trade, improve processing trade and develop other forms of trade. At the same time, we will actively expand imports, promote trade in services, and increase our competitive advantages in foreign trade. 

CCTV:

We've seen that the Belt and Road Initiative has achieved remarkable results since it was proposed six years ago. The international community has shown increasing support for the initiative. What measures will the Ministry of Commerce take to promote the jointly building of the initiative? 

Qian Keming:

Thank you for your question. Over the past six years, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the Ministry of Commerce has upheld the spirit of the Silk Road, followed the principle of pursuing shared benefits through consultation and collaboration, and pushed forward Belt and Road economic cooperation with great results. 

First, trade has kept increasing. The ratio of the trade volume between China and countries along the Belt and Road routes in the overall total of foreign trade has kept increasing, and the trade quality has also improved. 

Second, bilateral investment has kept expanding. Chinese enterprises have invested over $100 billion in the BRI countries, and the value of contracted projects with relevant countries has exceeded $720 billion. The BRI countries have made investments in China worth $48 billion. 

Third, the construction of key projects and industrial parks has made steady progress. A batch of major infrastructure projects, including the China-Maldives Friendship Bridge, the Addis Ababa-Djibouti Railway, and Gwadar port in Pakistan, have been put into operation. A batch of overseas economic and trade cooperation zones have been constructed in countries along the routes, with the investment volume totaling more than $30 billion and creating over 300,000 jobs.

Fourth, the construction of free trade zones (FTZs) has been accelerated. We have signed five free trade agreements with 13 BRI countries. Negotiations on the Regional Comprehensive Economic Partnership (RCEP) have entered a key stage and we have concluded substantial negotiations on an economic and trade cooperation agreement with the Eurasian Economic Union. 

Fifth, cooperation mechanisms have become more mature. We have set up bilateral investment cooperation working groups with 37 BRI countries, unimpeded trade working groups with five countries, and an e-commerce cooperation working mechanism with 19 countries. We have also signed third-party market cooperation agreements with 14 countries. 

Qian Keming:

As for the future plans, we will make efforts in five aspects as follows:

First, we will set up more open platforms. We will gear up our efforts in preparing for the Second China International Import Expo, and ensure that the China-Africa Economic and Trade Expo and other exhibitions can be organized well, so as to bring more products and services from the BRI countries into the Chinese market.

Second, we will explore better ways to achieve a two-way market flow. We will enhance synergy between development strategies, industries, projects and policies with relevant countries, proactively expand imports, promote balanced trade, help our enterprises develop e-commerce cooperation with relevant countries, negotiate and sign free trade agreements with more countries and upgrade those already signed.

Third, we will continue to build passages for unimpeded trade. We will push forward sound and orderly development of the China-Europe freight train services, proactively explore sources of goods and further facilitate trade. We will also boost construction of new land-sea trade corridors and improve logistics centers, information platforms and supply chains along the routes.

Fourth, we will focus on construction of the major projects. Under the principle of pursuing high standard cooperation to improve people's lives and promote sustainable development, we will launch a batch of major projects with substantial comprehensive benefits satisfactory to all parties, carry out a batch of aid projects that can help boost local social and economic development and improve people's livelihood, and push forward high-quality development of overseas economic and trade cooperation zones. We also plan to conduct third-party market cooperation with more countries, especially developed ones, and some international organizations, to realize the effect of "1+1+1>3." 

Fifth, we will improve management services. We will step up guidance for outbound investment in relevant countries and industries, and improve the liaison service platforms for overseas businesses and outbound investment, so as to better regulate business investment and operational behavior. For overseas Chinese businesses, we plan to give full play to the role of the overseas Chinese business chambers or associations to strengthen industrial self-discipline and offer more targeted services to them. Thank you.

Market News International:

I want to ask more about foreign investment in China. Due to sluggish domestic consumption, rising costs and fierce competition, returns on investment are declining. The Trump administration has said on many occasions that U.S. enterprises would be restricted in making fresh investments in China. How does the commerce ministry assess the willingness and trend of foreign investment in China in one or two years against this background? 

Wang Shouwen: 

Thank you for your question. Although costs of production factors have been rising in recent years, including labor and land costs, China's economic growth reached 6.3 percent in the first half of this year. Such a growth was driven largely by domestic consumption that contributed 60%. This shows China has a huge market and one that is very attractive to foreign investment. 

There are indeed aspects of trade friction and restrictions, but the pull of China's huge market is not to be underestimated. At the same time, China has very clear policies for attracting foreign investment. General Secretary Xi Jinping has stated many times that China's policies for the utilization of foreign investment will remain unchanged, China will continue to protect legitimate interests of foreign companies investing in China, and China will keep offering better services to foreign companies investing in China. A stable environment is very attractive to foreign investment. 

Just as Minister Zhong has said, China's inbound investment ranked second in the world. How does China achieve this? First, China is making serious efforts to attract foreign investment. Foreign investment has already created 10% of all jobs in urban areas, 20% of domestic taxes, and 40% of exports and imports over the past 40 years since the reform and opening up began. Also, in the past 40 years, foreign companies investing in China have gained great benefits. For instance, American enterprises investing in China earned $700 billion in revenues last year. Many of them have made more in the Chinese market than in their home market. They value the Chinese market very much, so they are willing to invest in it. The Chinese government has adopted a series of measures to support foreign investment. We have progressed solidly in opening up and easing market access for foreign investment. 

China issued the first negative list in 2013 when the China (Shanghai) Pilot Free Trade Zone was established. The list included more than 190 restrictive measures. Now, the number is reduced to 37. We not only work hard to expand access for foreign investment, but also protect the interests of foreign investors. This year, the "Foreign Investment Law" was unveiled, giving foreign companies equal treatment with Chinese companies. We set up a complaint mechanism for foreign investment, and we continue to take measures to facilitate and promote foreign investment. For example, China has simplified approval procedures for foreign investment, meaning that 99% of foreign companies only need to register with the commerce supervision authorities. For foreign companies investing in central and western China, and in some advantaged industries, we have formulated a guidance catalogue. Moreover, we have developed platforms for attracting foreign investment. We have worked hard to attract foreign investment to our free trade zones and development areas. These measures have ensured smooth access to Chinese market for foreign investors, and their legal interests have been given due protection. In the future, we will promote the implementation of these laws and policies, open wider to the world, and improve the environment for foreign investment utilization. As a result, I feel optimistic for our utilization of foreign investment. 

L'Independant Mali: 

During the past 70 years, China and Africa have developed a strong relationship in terms of trade. What are the main achievements made so far? What are you planning to do to consolidate and improve the outcomes? Thank you. 

Qian Keming： 

Thanks for your question. Due to the concerns of the leaders of China and African countries over the years, and thanks to the joint efforts from both parties, Sino-African economic cooperation has witnessed great development, with its cooperation framework becoming all-round, multi-level and wide-ranging. China has been Africa's largest trading partner for the past 10 years, and Africa is an emerging investment destination for Chinese companies. By the end of 2018, the stock of Chinese direct investment in Africa had exceeded $46 billion, with more than 3,700 Chinese enterprises making such investments. Africa has become China's second largest overseas contracting market. In 2018, the value of the new contracts signed between China and African countries reached $78.4 billion. At the 2018 Beijing Summit of the Forum on China-Africa Cooperation (FOCAC), General Secretary Xi Jinping pledged to work toward an even stronger China-Africa community with a shared future for all, and proposed "eight major initiatives" covering cooperation in the next three years and beyond, providing political guidance and strategic plans for the development of China-Africa relations in the new era. We will further deepen China-Africa economic and trade cooperation by following the principle of sincerity, real results, affinity and good faith and the principle of pursuing the greater good and shared interests, pursuing the objective of jointly promoting the Belt and Road Initiative, and focusing on the implementation of the "eight major initiatives". 

Regarding our future plans, we actually have many, but I'm not going to elaborate on all of them here. Instead, I'd like to talk about three aspects. 

First, we will support African countries to enhance their own capability to develop. The way we used to adopt to help them was like "providing blood"; now, we are going to help African countries to "produce blood". We will take industrial cooperation as the major driving force to support the transformation of Africa's economic structure, its industrial development in particular. At the same time, we will focus on infrastructure development, and accelerate the development of connectivity and the integration process. 

Second, we will pool the resources and forces of various parties. We know that China-Africa cooperation is a big game. In China's case, in the past, the central government played a major role. In the future, the central government will work jointly with local governments to continue the work. We are going to shift from the government-centered approach to the joint coordination of government, enterprises, financial agencies, commercial associations and the private sector. In addition, we will fully mobilize external resources to carry out trilateral cooperation, with developed countries and international agencies as major partners, so as to expand channels of cooperation with African countries. 

We will also work to transform and upgrade the cooperation model. We will focus on the following three tasks. The first is to deepen investment cooperation with African countries and encourage more local and private enterprises to invest in the region, thus creating employment and foreign exchange. By promoting the model of the economic and trade cooperation zones, we hope to develop a group of industrial clusters covering mining, light industry, textiles, construction materials, home appliances, automobiles, and even some high-tech industries. The second is to continue to expand trade with Africa and increase imports of non-resource products. As we all know, we have platforms such as the China International Import Expo and the China-Africa Economic and Trade Expo. The latter is held especially for Africa in central China's Changsha city. We will give full play to the role of these platforms and expand our imports from Africa. The third is to strengthen infrastructure construction. As I mentioned earlier, from the perspective of infrastructure construction cooperation, we will gradually diversify the model from EPC to BOT, PPP and the integration of investment-construction-operation, and guide financial institutions and enterprises to try new cooperation models in investment and financing. Thank you.

Economic Daily:

We noticed the Ministry of Commerce has held onsite meetings on the development of pedestrian streets in Hangzhou city recently. And Mr. Zhong has mentioned many times that the pedestrian street is a calling card of a city. So, my question is what progress has been made in renovating existing pedestrian streets and upgrading consumption through this channel. And what's the next step? Thanks. 

Zhong Shan:

Thanks for your questions. The renovation of pedestrian streets is one of our efforts to upgrade consumption. We focus on three parts. In terms of urban consumption, we are speeding up renovation of existing pedestrian streets, and the development of a commercial network composed of convenience stores and grocery stores. The pedestrian street is considered as an important platform to upgrade consumption, promote high quality development and open wider to the outside world. 

In terms of rural consumption, we are enhancing our efforts to channel industrial goods to the countryside and agricultural goods to the cities. We have developed e-commerce in the countryside and accelerated poverty relief work through such means, in a bid to invigorate rural markets and boost farmers' income. Now, e-commerce covers all the national designated poor counties. We have built over 1,700 county-level e-commerce service centers and logistic distribution centers. And 105,000 e-commerce service stations have already opened in rural areas. Most of the goods ordered online can be delivered within three days. 

In terms of service consumption, we will work on increasing supplies. The traditional services keep growing, and there is a growing demand in tourism culture, medical health, elderly care and other new services. 

Kyodo News:

The China-Japan-Republic of Korea Free Trade Agreement (CJK FTA) set a very important goal, so what's the recent progress? There are only three months to go this year, how are the RCEP negotiations progressing? What's your take on that? Thanks. 

Wang Shouwen:

Thanks for your questions. First, I will answer your question about RCEP. This is short for Regional Comprehensive Economic Partnership, and is seen as the world's most populous and promising free trade agreement negotiations. All the 16 member states have reached a consensus on the great significance of reaching a mega free trade agreement in a world that faces rising protectionism. This year, we have held two ministerial meetings and seven trade negotiations, plenary sessions and special sessions, which meanssome form of negotiations have been held every month. We held a ministerial meeting in Beijing this August, and in Thailand this September. During these two meetings, ministers reiterated goals set by the leaders last year to conclude the negotiations for the RCEP by the end of this year. Now, the RCEP negotiations are speeding up and we have seen great progress in terms of market access. In terms of the rules, there are only a few remaining issues. For these, all members of the RCEP decided to hold another ministerial meeting in Thailand next month. China is committed to promoting the leading role of ASEAN in these negotiations. And China is willing to join hands with other members of the RCEP to ensure a positive trend in the negotiations for a speedy conclusion. 

Wang Shouwen:

Once the deal of the CJK FTA is achieved, it will be of great significance to the development and integration of the three economies. The leaders of the three countries are paying close attention to the agreement. General Secretary Xi Jinping has stressed many times that China is willing to promote the negotiations to reach the agreement. Now, the three countries have reached a consensus to speed up the process. And the agreement should be comprehensive, high-level and beneficial to all members. It can be considered as "RCEP +," which means better than RCEP. Now, the three countries have decided to hold a further 16 rounds of negotiations in South Korea and strive for a new round of negotiations in China before the end of this year. We believe that, based on the RCEP negotiations, the CJK FTA will surely achieve more progress. And all the three countries are willing to seek such a step. Thanks.

Beijing Daily:

My question is about the price of pork. Recently, the price is rising quickly. So, what kind of measures has the Ministry of Commerce taken to stabilize the price and ensure supply? Thanks. 

Qian Keming:

Indeed, as you say, the price of pork has been running high due to the African Swine fever and other factors. To ensure supply and stabilize the price, the Ministry of Commerce has worked with other departments to take a series of measures with many achievements. 

We also expanded the import of pork and improved related policies. During the first eight months this year, we imported 1.164 million tons of pork, up 40.4% over the previous year. On top of that, we have expanded imports of alternatives to pork. During the first eight months this year, we imported 980,000 tons of beef, 265,000 tons of mutton and 493,000 tons of poultry meat, respectively up 53.6%, 16.6% and 50.7%. 

Our efforts have yielded progress. Last week, the average trade price of pork dropped slightly compared to the previous week. Currently, according to the overall arrangements, all departments and local governments are moving forward with the work steadily and promoting resumption of the pork production capacity, improving imports and ensuring regulation of reserves. In the meanwhile, we increase the supply of beef, mutton and poultry meat to the market. Generally speaking, we have the confidence and abilities to ensure the supply of meat and stabilize the pork price. Thanks. 

CNBC: 

It's said the next round of China-U.S. trade negotiations will be held on October 10. Can the Ministry of Commerce confirm this? And will Vice Premier Liu He lead this delegation? Thank you. 

Wang Shouwen: 

Chinese Vice Premier Liu He will lead the Chinese delegation to visit Washington D.C. for the 13th round of the China-U.S. high-level economic and trade consultations in the week following the National Day holiday. China and the United States recently held vice ministerial-level trade talks in Washington, with constructive discussions on economic and trade issues of common concern. The two sides also exchanged views on the specific arrangement for the 13th round of China-U.S. high-level economic and trade consultations. China's standpoint on the consultations remains consistent and clear, and its principles have been repeatedly stressed. The two sides should seek solutions through equal dialogue on the basis of mutual respect, equality and mutual benefit, which is in line with the interests of both countries and their peoples, as well as the rest of the world.

TDM: 

Can you brief us on the achievements in building pilot free trade zones? What's the next step going to be? What progress has been made in building a free trade port in Hainan province? Thank you. 

Wang Shouwen: 

Thank you for your questions. The building of pilot free trade zones is a strategic measure taken by the CPC Central Committee with Comrade Xi Jinping at its core to promote reform and opening up in the new era, which is a milestone in the process of reform and opening up. In 2013, we established the first pilot free trade zone. In the past six years, we have made a series of achievements in all aspects of our work. 

Take the layout of the pilot projects as an example. We now have a layout of pilot free trade zones covering all parts of the country, helping to promote a series of national strategies. Now, all coastal provinces have established an effective layout of pilot zones. 

The State Council made a total of 24 overall and in-depth plans for pilot free trade zones. These plans have assigned a series of tasks of 18 of these zones, through which more than 200 available experiences have been gained, so that these models can be copied and extended in other parts of the country. 

From January to July this year, the 12 free trade pilot zones set up in the previous period, covering less than four-thousandths of the national territory, attracted foreign investment accounting for 14% of the country's total, while the import and export volume accounted for 13%. 

The exploratory work on setting up free trade ports with Chinese characteristics is a major national strategy that General Secretary Xi Jinping has personally planned, arranged and promoted. In the past period, the Ministry of Commerce, in accordance with the unified arrangement of the CPC Central Committee and the State Council, has drawn on international experiences, proceeded from the specific experiences of Hainan province, and made in-depth studies on the policy and institutional system of Hainan's free trade port in terms of internal and external trade, investment and financing, fiscal and taxation, financial innovation, and entry and exit procedures. Progress has been made in these areas.  

As the next step, the Ministry of Commerce will, in accordance with the decisions and plans of the CPC Central Committee and the State Council, work with other related departments to speed up exploration of building the free trade port in Hainan province, and establish it as a new focus of reform and opening up with a higher level of openness, better business environment and with the ability to play a key role in driving the development of surrounding areas. Thank you. 

CRI:

The 2nd CIIE will be held in Shanghai this November. We would like to know what features this year's expo will have. How are the preparations going at present? Thank you. 

Zhong Shan:

Thank you for your question. The CIIE is China's major initiative to further widen market access to the rest of the world. We firmly implement General Secretary Xi Jinping's important instruction of "hosting CIIE with good performance, fruitful results and continued success in the years to come." We are now meticulously preparing for the event, and all is going smoothly. This year's expo will have the following three main aspects: 

First, it will be on a larger scale. Enterprises from different countries will participate in this year's expo with more enthusiasm. The total exhibition area this year is 360,000 square meters, which is 60,000 square meters more than last year. There will be more countries, regions, international organizations and enterprises attending. 

Second, you will see higher quality. This year's expo will feature more than 250 companies from among the World Top 500. This number clearly surpasses that of last year. Many brand-new products, technologies, and services will be unveiled and exhibited for the first time in China as well as around the world. There will also be more buyers, especially those from foreign countries. 

Third, a greater variety of activities will be held. There will be hundreds of themed events during the upcoming expo, and the "CIIE Releasing" platform will be set up for the first time to publish key policies of China and research results of international organizations. 

The Hongqiao International Economic and Trade Forum will also be held during this year's CIIE. 

We also welcome more participation of media friends in the upcoming CIIE. Thank you. 

Xi Yanchun:

Today's press conference is the last one held by the Press Center for the Celebration of the 70th Anniversary of the Founding of the PRC. On behalf of the Press Center, I would like to take this opportunity to say thank you to our media friends. For more interview activities, please follow our website and social media accounts, and I wish you all success in your interviewing. Thanks again to the three speakers. The press conference is hereby concluded. Thank you all. 

Speakers:

Li Ganjie, minister of ecology and environment

Huang Runqiu, vice minister of ecology and environment

Zhai Qing, vice minister of ecology and environment

Chairperson:

Tian Yuhong, person in charge of the Press Center for the Celebration of the 70th Anniversary of the Founding of the People's Republic of China

Date:

Sept. 29, 2019

Tian Yuhong, person in charge of the Press Center for the Celebration of the 70th Anniversary of the Founding of the People's Republic of China: 

Ladies and gentlemen, journalist friends, good afternoon. Welcome to the fourth press conference held in the press center. 

Ecological progress is of fundamental importance to the sustainable development of the Chinese nation. It is an important part of the overall plan to promote balanced economic, political, cultural, social, and ecological progress, and an important part of the coordinated implementation of the Four-pronged Comprehensive Strategy. Over the past 70 years, China has made tremendous and substantial achievements in ecological environmental protection. 

Today, we are delighted to invite Mr. Li Ganjie, minister of ecology and environment, and Mr. Huang Runqiu and Mr. Zhai Qing, both vice ministers of the ministry, to attend this conference. They will tell us more about what is being done to promote ecological progress and build a beautiful China. 

First, I'll give the floor to Mr. Li Ganjie.

Li Ganjie:

Thank you, sir. Journalist friends, good afternoon. It's a great pleasure for me and my colleagues—Mr. Huang Runqiu and Mr. Zhai Qing, both vice ministers of ecology and environment — to introduce the work we are doing to promote ecological progress and build a beautiful China. We'd like to share our views with you.

Since the People's Republic of China was founded 70 years ago, China's environmental protection has achieved historic achievements. In particular, after the 18th National Congress of the Communist Party of China (CPC), the CPC Central Committee with Comrade Xi Jinping at its core has formulated a series of fundamental, far-sighted and pioneering plans. These have resulted in historic, fundamental and overall changes in the implementation and understanding of the works related to environmental protection and ecological progress.

To be more specific, there have been changes in the following seven aspects. 

First, greater efforts have been made to devise strategic plans. In the past 70 years, environmental protection has been regarded as a fundamental national policy, and sustainable development has become a national strategy. Great efforts have been made to build a resource-conserving and environmentally-friendly society. The strategic position of ecological protection has been raised continuously. In particular, after the 18th CPC National Congress, Xi Jinping's thinking on promoting ecological progress has been established. Ecological progress was included into the country's Constitution and the CPC Constitution. Unprecedented emphasis has been given to ecological progress.

Second, greater efforts have been made to better treat pollution. Over the past 70 years, we have never stopped innovating, opening new fronts and making dedicated efforts to treat pollution. After the 18th CPC National Congress, we declared war against pollution. Three action plans, each containing 10 articles, were announced to treat the pollution of air, water and soil respectively. Since then, our ecological system has constantly improved. 

Third, steady progress has been made in environmental protection. In the past 70 years, we have given equal emphasis to environmental protection and pollution treatment. After the 18th CPC National Congress, we carried out the project to protect and restore the mountain, water, forest, farmland, lake, and grassland ecosystems. We have also promoted the development of protected areas, especially national parks, and identified ecological red lines, which are also known as "conservation red lines." Our home has become increasingly beautiful.

Fourth, various systems have been improved. In the past 70 years, we have insisted on protecting the environment through various systems. After the 18th CPC National Congress, we accelerated our efforts to formulate the overall plan for ecological progress and establish related systems. A batch of systems and measures has been launched. They include the accountability system for environmental damage, the emissions permit system, the river chief and lake chief systems, and the measure to block illegal waste imports. We have made a marked improvement in the ecological environment.

Fifth, reform of various systems has been deepened. The State Council Leading Group of Environmental Protection was set up in 1974, the Ministry of Environmental Protection was established in 2008, and finally the Ministry of Ecology and Environment was established in March 2018. In so doing, we have become the only oversight agency to monitor pollutant discharge in urban and rural areas and take enforcement actions whenever and wherever necessary. Our role in environmental protection has been improved and consolidated.

Sixth, law enforcement has been increasingly strict. In the past 70 years, a system of laws, with the Environmental Protection Law being the most important one, has been established. After the 18th CPC National Congress, nine laws related to environmental protection and more than 20 administrative rules were formulated. The new Environmental Protection Law, widely recognized as the strictest-ever version, took effect in 2015. In the first round of environmental inspections by the central authorities and in follow-up inspections, more than 150,000 environmental protection problems concerning common people were solved. 

Seventh, we have continuously expanded the scope of international cooperation. In the past 70 years, the Chinese government approved the implementation of more than 30 multilateral conventions and protocols in relation to the environment and ecology. After the 18th CPC National Congress, China played an active role in global environmental protection. We were among the first to release the National Plan on Implementation of the 2030 Agenda for Sustainable Development. We have also taken a leading role in global climate change negotiations. 

In the next stage, the Ministry of Ecology and Environment will continue to follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and further implement Xi Jinping's thinking on promoting ecological progress. We will remain true to our original aspiration and keep our mission firmly in mind. We will conscientiously shoulder the political responsibility of promoting ecological progress, and pass the CPC's best traditions down to the next generation. All our efforts are dedicated to making a constant improvement in the country's environment.

Next, we're ready to take your questions. Thank you.

Tian Yuhong:

Thank you, Mr. Li. Let's move to the Q&A session. Please identify yourself before asking your question.

China Central Television:

Mr. Li, you have contributed to and witnessed China's ecological protection campaign. From your point of view, are there any good practices we can draw on from the achievements made?

Li Ganjie:

Thank you for your question. In the past 70 years, especially since the 18th CPC National Congress, China has made many achievements in ecological and environmental protection under the firm leadership of the CPC Central Committee with Comrade Xi Jinping at its core, and with the joint efforts of the whole nation.

We have explored many effective practices in environmental protection during this process. Here are six that I think are the most important:

First, putting into practice Xi Jinping's thinking on promoting ecological progress. The thinking, which I think is composed of the following eight parts, is profound and specific, and gives much guidance and inspiration to our work. First, a civilization prospers when its environment is well-preserved. Second, creating harmony between man and nature. Third, green mountains are akin to mountains of gold. Fourth, protecting the environment is ensuring the people's livelihood. Fifth, adopting a holistic approach to conserving mountains, rivers, forests, farmlands, lakes, and grasslands. Sixth, implementing the strictest possible systems for environmental protection. Seventh, mobilizing the whole society to promote environmental protection and build a beautiful China. Eighth, working together with the international community to build a sound global eco-environment.

Second, putting people first. On one hand, we need to improve the environment to better serve the people and meet their growing demands. On the other hand, we need to make more progress by depending on their support and supervision.

Third, making sure that the Party and government officials take equal responsibility in environmental protection. While strengthening the Party leadership, we will try to ensure that Party committees and governments at all levels take full responsibility in ecological protection, and that officials from various departments should perform their environmental protection duties in addition to their specific jobs.

Fourth, placing the quality of the environment at the center of our work. In the past, quantity was our first priority, but now we are focusing more on quality in environmental protection.

Fifth, we should stick to six working principles, i.e. seeking progress while maintaining stability; taking all factors into consideration; adopting comprehensive measures and strategies; paying attention to both the macro and the micro level; making overall progress while choosing several priorities; being realistic and pragmatic. I think these are the most important working principles we have drawn from our experience.

Last but not least, we are constantly strengthening our institutions and technological capabilities, and will endeavor to modernize our methodology and systems to protect the environment.

China Daily: 

We noticed that the Ministry of Ecology and Environment has conducted the "Green Shield" nature reserve inspections with other related departments, and has looked into a batch of problems in this regard. We were also informed that China will host the 15th session of the Conference of the Parties to the Convention on Biological Diversity (CBD COP15) in 2020 in Kunming. Can you please give us details on the challenges facing China's ecological and environmental protection and the measures to be taken in the future? Thank you!

Huang Runqiu:

Friends from the media, I'd like to point out that we have been unrelentingly enhancing our efforts in ecological and environmental conservation as well as restoration since the PRC was founded 70 years ago. The remarkable achievements we have made can be highlighted in the following four aspects.

First, we have realized a historic leap in ecological and environmental protection philosophy, which means we have begun to lead, rather than follow, especially since the 18th CPC National Congress. Just as Minister Li Ganjie said, under the guidance of Xi Jinping's thinking on promoting ecological progress, we have acted on concepts such as "building an ecological civilization is of fundamental importance for the sustainable development of the Chinese nation;" "ensure harmony between man and nature;" "lucid waters and lush mountains are invaluable assets"; "a good ecology and environment are the most inclusive benefits of people's livelihood and well-being;" and "mountains, rivers, forests, farmland, lakes and grasslands are a life community." We used to learn from others and emulate them, but now, we have our own innovative and guiding precepts.

As you mentioned just now, next year we will host the CBD COP15. After consulting with the convention's secretariat and conferring with the countries involved, we've decided that the theme of the session will be "Ecological Civilization: Building a Shared Future for All Life on Earth." This fully manifests the significance of Xi Jinping's thinking on promoting ecological progress for the world, and embodies the international community's sincere acknowledgment of China's efforts and achievements in protecting its ecology and environment and building its ecological civilization.

Second, we have realized a historic change in our ecological and environmental governance system. Over the past seven decades, our ecological and environmental conservation and supervision system, once extensive, subordinate, and fragmented, has developed into a more intensive, independent, and systematic one. The establishment of the Ministry of Ecology and Environment in 2018 marked the birth of the ecological and environmental conservation and supervision system that fits our national conditions. In building the system, ecological civilization has been adopted by the Constitution of Communist Party of China and the Constitution of the People's Republic of China. Ecological red lines have been written into the Environmental Protection Law. Ecological security is now part of national security, and the ecological and environmental protection undertaking has turned more systemized, standardized and legalized. 

Third, we have realized a historic leap in nature and ecology protection. We have set up 2,750 nature reserves, covering 15% of the country's land area. Including other kinds of reserves, this figure would be 18%. That's to say, we have already met the target set by the Convention on Biological Diversity, that 17% of China's land area should be nature reserves in 2020. 

Fourth, we have conducted a series of important programs to better conserve natural forests, the reforesting and regrassing of cultivated land over the past 70 years. Since the 18th CPC National Congress, we have initiated a systematic conservation and restoration of the mountains, water, forests, lakes, and grasslands, and launched a campaign to "green the land." So far, forests cover about 22.96% of China's land area, a figure that was only 8% when the PRC was founded. In nearly 20 years, China has remained the largest contributor to global greening, with its newly increased areas of vegetation making up 25% of the world's total. 

Our ecological security is faced with severe challenges: Forests, shrubs, grasslands, and wetlands are being encroached upon and ecological degradation still prevails in certain areas. Fraught with ecological risks, the ecological system remains fragile; the supply of quality ecological resources can barely meet people's demands; and our per capita forest and wetland coverage is only one fifth of the world average.

We will further implement Xi Jinping's thinking on promoting ecological progress, and speed up the improvement of our ecological and environmental conservation and supervision system. Never allowing the ecological red lines to be crossed, we will firmly safeguard our national ecological security, continuously strengthen supervision over nature reserves, and steadily reinforce our efforts in biodiversity conservation. 

Xinhua:

We have noticed that there are many news reports about the central inspection work on environmental protection in the past two years. What's your take on the role of these central inspections? Also, some local governments may relax their efforts after the teams left. So how do you tackle this problem? Thanks.

Zhai Qing:

The central inspection work on environmental protection was a major reform measure advocated and promoted by General Secretary Xi Jinping, which is an important mechanism to strengthen environmental protection and ecological construction.

We have made many achievements, which are as follows: 

First, local governments have had a fundamental change in their thoughts on environmental protection. Xi Jinping's thinking on promoting ecological progress has deeply taken root in people's minds. Lucid waters and lush mountains are invaluable assets. High-quality development is better than high-speed development. And people in all sectors are focusing on ecological protection and coordinated development. These guiding principles and instructions promoted by General Secretary Xi Jinping are being implemented.

Second, there has been a major shift in the conduct of local governments. In our inspections in recent years, we were able to access clearer statistics on environmental protection. As such, we oriented and carried out our tasks based on them. During this process, we earnestly implemented Xi Jinping's thinking on promoting ecological progress and have ensured that the inspection mechanism is an effective measure to promote ecological progress.

Third, we have addressed a series of major problems. The first round of inspections tackled about 150,000 problems closely related to the public. By introducing various means such as our inspection reports and special inspections, we have helped local governments solve over 2,100 major problems relating to environmental protection.

Our next step is to give top priority to the promotion and implementation of Xi Jinping's thinking on promoting ecological progress. Your question is about our future plans. We will continue to solve the problems that affect people's lives. On top of that, we will ensure that people are aware of the importance of environmental protection and take part in the overall effort.

Li Ganjie:

The central inspection work on environmental protection has proved to be an important and effective measure to promote ecological progress. This inspection started at the end of 2015. This year, we carried out the first batch of the first round of inspections and we are going to complete the second batch in the second half of this year.

L'Express (Mauritius):

China's carbon dioxide emission is relatively low, considering your economic growth, around 2% over the last five years. However, China is still building coal power plants in member countries of the Belt and Road Initiative. How do you intend to tackle this disparity, considering your commitment, globally, to fight climate change? Thank you. 

Li Ganjie:

Thanks for your question, and I would also like to thank you for following the green development of the Belt and Road Initiative (BRI). The Chinese government has placed great importance on constructing mechanisms to ensure the green development of the BRI. President Xi Jinping has stressed on different occasions the importance of building the BRI into a "road of green development", and the need to pursue open, green and clean cooperation. The BRI aims to promote green development and China will launch green infrastructure projects, make green investment and provide green financing.

The Ministry of Ecology and Environment has been working hard to promote green development of the BRI so as to ensure that projects under the BRI are in line with green development. What we have been doing can be summarized as follows:

First, we have promoted top-level design. Working together with related departments, we have issued the Guidance on Promoting Green Belt and Road and the Belt and Road Ecological and Environmental Cooperation Plan.

Second, we have improved the cooperation mechanism. We have signed more than 50 cooperation documents with the environmental protection departments of countries along the Belt and Road and relevant international organizations. Moreover, we have officially established the International Coalition for Green Development on the Belt and Road.  To date, over 130 stakeholders, including government agencies, enterprises, think tanks and international organizations, have become members of this international coalition.  

Third, we have established various platforms for cooperation. We have launched a platform of green supply chains for the BRI, and the Lancang-Mekong Environmental Protection Center. Working with Cambodia, we have established the China-Cambodia Environmental Cooperation Center. Currently, we are working with African countries to build a center for Sino-African environmental cooperation. We have also launched the Belt and Road Big Data Service Platform on Ecological and Environmental Protection.

Fourth, we have enhanced policy dialogues. Working together with the National Development and Reform Commission, we held a thematic forum on Green Silk Road at the Second Belt and Road Forum for International Cooperation in April. We have also organized a series of seminars and discussions, with about 20 such events every year. 

Fifth, we have strengthened capacity building. We have helped some countries along the BRI train professionals in ecological and environmental protection as well as in green development. In recent years, we offer support to over 300 people to attend exchange and training programs in China every year. Moreover, we have officially set up the Belt and Road Environmental Technology Exchange and Transfer Center in Shenzhen. 

All of these efforts have played a positive role in promoting the green development of the BRI. The practices have showed that the BRI is not only for economic prosperity but also for green development. Only if we integrate ecological and environmental protection into all aspects of the Belt and Road construction, can we ensure its steady and continuous development. Our work has indeed proven effective.

Going forward, we will continue to give priority to green development of the BRI and do a better job, with focus on advancing the development of the International Coalition for Green Development on the Belt and Road and the Belt and Road Big Data Service Platform on Ecological and Environmental Protection,. We will further enhance policy dialogues to enhance coordination of laws, regulations and standards, as well as promote the establishment of a list of investment projects to show whether they should be banned, restricted or encouraged. We will also work with related agencies to conduct joint environmental performance evaluation on projects. In addition, we will continue to carry out training programs, and strengthen capacity-building, so as to contribute more to the implementation of the BRI, and play a bigger part in building it into a road of green development. Thank you. 

China News Service:

In the large achievements exhibition to mark the 70th anniversary of the founding of the PRC, there is a special exhibit, which is on the first environmental protection law promulgated in 1979. Over the years, the state has successively introduced a number of environmental protection laws and regulations. What work has been carried out in promoting the building of the rule of law in the area of protecting the ecological environment? Thank you.

Huang Runqiu:

Forty years ago, in 1979, the Fifth National People's Congress passed the Environmental Protection Law (for Trial Implementation). Ten years later, the Environmental Protection Law was passed in 1989. Since then, the ecological environment protection work of our country has gradually become based on the rule of law.

At present, through hard work, we have basically formed a legal and regulatory system led primarily by the Environmental Protection Law and which covers some major environmental factors such as the atmosphere, water, soil, natural ecology and nuclear safety. In particular, since the 18th National Congress of the CPC, in accordance with the spirit of the important instructions by General Secretary Xi Jinping who insisted on employing the most stringent system and the strictest rule of law to protect the ecological environment, we now focus on high-quality legislation, equally adhere to legislation, revision and repeal, so that the ecological environment rule of law system is continuously improved. In recent years, we have successively formulated and revised nine ecological and environmental laws including the Environmental Protection Law, the Air Pollution Prevention and Control Law, the Water Pollution Prevention and Control Law, the Solid Waste Pollution Prevention and Control Law, the Soil Pollution Prevention and Control Law, the Marine Environmental Protection Law, the Environmental Impact Assessment Law, the Nuclear Safety Law and the Environmental Protection Tax Law. That is to say, since the 18th National Congress of the CPC, the main laws in the field of the ecological environment have undergone a round of revisions. If a law didn't exist in the past, we filled the blanks and formulated new ones. This includes the Soil Pollution Prevention and Control Law, the Nuclear Safety Law, and the Environmental Protection Tax Law. Since its implementation in 2015, the new Environmental Protection Law has made a remarkable impact in combating environmental violations. I have a set of data here. In 2018, there were 186,000 environmental cases receiving administrative punishment in the country. In 2014, there were only 83,000 such cases. In comparison, it's an increase of 124%.

To fight the battle against pollution and promote the building of an ecological civilization, we must rely on the system and the rule of law. As the next step, the Ministry of Ecology and Environment will promote the building of an ecological and civilized legal and regulatory system that is compatible with the goal of the Beautiful China Initiative.

Our next step is to work hard in two aspects: First, we must further strengthen legislation in key areas. In conjunction with the legislature, we will spare no effort to make and revise laws and regulations. These include the Solid Waste Pollution Prevention and Control Law, the Yangtze River Protection Law, the Regulations on the Administration of Pollutant Discharge Permits, and the Regulations on Ecological Environment Monitoring. Second, we will also vigorously promote the building of a rule-of-law-based mechanism related to the reform of the ecological civilization system, including legislations on ecological environmental damage compensation, nature reserves, ecological protection red line, etc.

CNR:

Recently, General Secretary Xi Jinping put forward his requirements for the protection and harnessing of the Chinese nation's "Mother River" -- the Yellow River. We know that the ecology of the Yellow River Basin is relatively fragile, and many tributaries are also severely polluted. My question is, how should we resolve these contradictions and solve these problems to ensure the long-term stability of the Yellow River? Thank you.

Li Ganjie:

On Sept. 18, General Secretary Xi Jinping presided over a symposium on ecological protection and the high-quality development of the Yellow River basin in Zhengzhou. General Secretary Xi Jinping delivered an important speech where he emphasized that "The protection of the Yellow River is critical to the great rejuvenation and sustainable development of the Chinese nation." The ecological protection and high-quality development of the Yellow River basin is a major national strategy. He stressed the need for stronger coordination in the comprehensive protection and management of the Yellow River to make it the "River of Happiness" that benefits the Chinese people. I was very honored to personally participate in this symposium and listen to the important speech. I was especially enlightened and touched. In the follow-up, we will seriously implement the spirit of the symposium, especially that of General Secretary Xi Jinping's important speech.

As the Yellow River is very important in the seven major river basins, in recent years, we have been working together with nine provinces and regions along the Yellow River and related departments to promote ecological environment protection work:

First, we are actively promoting the implementation of ecological environment protection responsibilities. I just gave an introduction on the central ecological environment protection inspection, and the basin along the Yellow River has always been the focus of our work.

Second, we are carrying out the protection and restoration of our ecosystem.

Third, we are strengthening the prevention and control of the river basin pollution. Relevant work on the Yellow River basin has always been our priority, including the remediation of drinking water sources, the treatment of black and odorous water bodies, as well as infrastructure construction.

Fourth, we are strictly controlling the access threshold for the ecological environment standard. Strategic environmental impact assessment and environmental impact planning assessment in some key industries have also been carried out.

Through these tasks, we are working together with relevant departments and localities to achieve significant improvements in the quality of the ecological environment. For example, the improvement in the quality of water in the Yellow River basin is quite obvious in the past two years. The improvement of the water quality is not only the result of pollution control and reduction, but also the result of effective ecosystem protection and restoration. As our follow-up, we must do a good job in ecological protection and promoting the high-quality development of the Yellow River basin.

I think the key directions of our future efforts are as follows: First, we will continue to do high-level strategic planning and design. Second, we will promote the ecological protection and restoration based on different classifications and zonings. The situations in the upper, middle and lower reaches of the Yellow River basin are very different, and we can't resolve things with a "one size fits all" solution. Third, we will continue to vigorously promote pollution control. Fourth, we will vigorously promote high-quality development and improve our environmental management capabilities. We will also implement the central government's requirements, especially the implementation of General Secretary Xi Jinping's instructions on ecological protection and high-quality development of the Yellow River basin, to make the Yellow River become the "River of Happiness" that benefits people. We will continue to work hard, play our role and make our contribution. Thank you.

Sunshine Magazine (Hong Kong) and Outlook China Magazine:

China's progress in environmental protection has been well-recognized by the public since General Secretary Xi Jinping put forward the concept of building a "beautiful China" and launching an all-out fight to keep our skies blue, our waters clear, and our land pollution-free. What progress have we made in regard to desert control? Thank you.

Li Ganjie:

Thank you for your question. Generally speaking, environmental protection involves two main aspects -- pollution prevention and ecological protection and restoration. Your question is concerned with the latter aspect. There are five large deserts along the Yellow River as I remember, namely the well-known Tengger, Badain Jaran, Mu Us, Kubuqi, and Ulan Buh Desert. Desert control has been strengthened and we have had marked achievements over the years.

Since the PRC was founded in 1949, the case of Mu Us Desert has become a highlight in our efforts in desert control. It has transformed into oases nowadays. A similar case can also be found in the Kubuqi Desert, the control of which should be firstly attributed to Elion Resources Group. Its CEO, Mr. Wang Wenbiao, was awarded "Champion of the Earth" in 2017 for Elion's remarkable progress and valuable experience in desert control. 

I believe that as long as we are determined, and with the support of science and technology, our work on desert ecological protection and restoration is certain to produce more effective and remarkable results.

CRNTT:

In recent years, the air quality in China has been significantly improved, especially in the past two years. Still, heavily polluted weather and skies are still likely in autumn and winter. My question is for Mr. Li. What's your comment in regard to the progress China has made in preventing and controlling air pollution? In addition, you mentioned earlier this year that China's air quality is "dependent on the weather," what measures should be taken in the future to get rid of such a situation?

Li Ganjie:

Thank you for your question. I believe that you were probably present at the press conferences of the Two Session this March when I noted that China's air quality is "dependent on the weather." As the CPC Central Committee and the State Council have always placed great importance to it, air pollution has become the priority in "combating critical battles of pollution prevention." It should be said that a marked achievement has been made.

Here are some statistics for your reference. Take PM2.5, an issue of great public concern, for example. In 2013, China introduced the Air Pollution Prevention and Control Action Plan. Only six years later in 2018, the average PM2.5 concentration decreased by 41.7% in the first 74 key cities which carried out PM2.5 monitoring. This figure in Beijing is even more striking, down by 43%. In the past two or three years, the PM2.5 concentration in Beijing saw a double-digit-percent decline every year. For example, the figure in 2017 fell by 20.5% year-on-year; and in 2018, it was down by another 12.1%. The figure this year is still promising as PM2.5 concentration from Jan. to Aug. decreased by 14.3% compared with the same period last year. Thus, everyone feels that the air quality in Beijing has improved, which matches our statistics. This also shows that our work on prevention and control is indeed effective.

Another topic is sulfur dioxide emission. Previously, the sulfur dioxide concentration in China was rather high. This led to a relatively large area becoming affected by acid rain. In the past six years, the sulfur dioxide concentration in cities above the prefectural level dropped from 35 μg per cubic meter in 2013 to 14 μg per cubic meter in 2018, down by 60%. Basically, the areas experiencing heavily polluted weather, as well as its frequency and severity have been significantly decreased.

All of the achievements above should be attributed to the following works.

First, we continuously improved the top-level planning and governance structure. In 2013, China introduced the Air Pollution Prevention and Control Action Plan. Five years later in 2018, a Three-year Action Plan for Keeping Our Skies Blue was formulated and published. A leading group in air pollution prevention and control for the Beijing-Tianjin-Hebei and nearby area was established; and a coordinating mechanism for air pollution prevention and control in the Fen-Wei Plains and Yangtze Delta was established. 

Second, we have stepped up the effort to adjust "four structures (i.e. industrial structure, energy consumption structure, structure of transport, and land structure)." The adjustment of the "four structures" is of great importance in the prevention and control of air pollution. In recent years, great changes have taken place in these four fields. For example, in terms of industrial structure, the proportion of transformed thermal power with ultra-low emission reached more than 80%, meanwhile that of iron and steel also made progress to a certain extent. In the past, China's coal consumption was always high. In 2011 and 2012 the figure reached around 70%, while that of last year decreased to 59%, which is not an easy feat. The proportion of non-fossil fuel consumption increased to 14.3%. In addition, in terms of the structure of transport, we have managed to scrap 24 million outdated vehicles as well as the yellow-labelled ones (high-emission vehicles). This has greatly reduced the air pollution. 

Third, we have continued to build capacities, and strengthen scientific and technical support. In recent years, we established a nationwide network to monitor China's air quality. A total 1,436 sites have been set up, which effectively monitors air quality in cities above the prefecture level with accurate statistics. In addition, we established the National Center for Air Pollution Prevention and Control, which plays an important role in identifying pollution sources and their major spread patterns.

Fourth, we are working to strengthen the supervision of law enforcement, and public engagement. We have been successful in strengthening supervision work along with implementing normalized supervision work. In 2017, 38,900 environmental problems concerning air pollution were found and solved through the strengthening of supervision work. The figure last year was 52,000. The rectification rate of these problems is very high, and stands at over 99%. As for the work this year, our plan remains the same, and the results so far are still very promising. At the same time, we also actively encourage public engagement. We've found that almost half of the pollution problems handled by us are reported by ordinary people. As we receive information from various sources, our efficiency has also been raised.

As you just said, we have achieved some accomplishments over the years, but the situation is still not optimistic. We are still at a stage where the climate, weather and meteorological conditions have a great impact on the air quality. And the discharge of pollutants remains high. Experts from National Center for Air Pollution Prevention and Control have estimated how much meteorological factors can affect PM2.5 concentrations. Within a year, PM2.5 concentrations in cities may rise or fall by 10% depending on various meteorological conditions. The figure may rise to 15% in some isolated cases, and even reach over 30% if measured monthly.

Therefore, we must fully implement the Three-Year Action Plan for Keeping Our Skies Blue.

Tian Yuhong:

The last question.

The Straits Times:

Does the recent speech made by Chinese Foreign Minister Wang Yi at the UN headquarters indicate that China may probably reach the peak of carbon dioxide emission ahead of the 2030 schedule?

Li Ganjie:

The Chinese government has always placed great importance on addressing climate change. President Xi Jinping stressed several times that addressing climate change is not a task imposed on us by others, but a cause we are willing to fight for. To act on climate change is driven by China's domestic needs for sustainable and high-quality development. And we have been taking action all along.

The UN Climate Action Summit was held at the UN headquarters in New York on Sept. 23, 2019. President Xi Jinping's special representative, State Councilor Wang Yi attended and addressed the summit. In his speech, Wang explained China's stance and proposals on addressing climate change. He said that the joint fight against climate change requires us to uphold multilateralism, follow the principle of "common but differentiated responsibilities," and respect the need for development and the special conditions of developing countries. Besides, developed countries should help developing countries build up their preparedness.

Wang also said that as a responsible member of the international community, China honors its words and continues to take action on climate change. No matter how the international landscape may evolve, there will be no change in China's efforts to fight climate change, its readiness to deepen climate cooperation with other countries, or its commitment to the multilateral process on climate change.

In recent years, China has made great efforts to combat climate change, during which marked achievements have been made. In 2018, the share of China's non-fossil fuels in primary energy consumption reached 14.3 percent; CO2 emissions per unit of GDP dropped by 45.8 percent from the 2005 level; forest stock increased by 4.56 billion cubic meters from 2005. All these are considerable achievements. In the same year, a total of 1.25 million electric vehicles were sold in China, far more than in any other country. We have made great efforts in emissions reduction, carbon sinks and forest stocks, and have achieved very good results.

Here I must make clear that, as the biggest developing country in the world, China has achieved the above accomplishments through arduous efforts and hard work, instead of empty talk. As the biggest developing country, China has been faced with many difficulties and challenges in its economic and social development. It is not easy for us to achieve our goals. But of course, China will faithfully fulfill our obligations under the UNFCCC and the Paris Agreement, and achieve, as scheduled, its intended nationally determined contributions targets submitted to the UNFCCC secretariat. Meanwhile, China will keep taking action on climate change. That's all for my answer, thank you.

Tian Yuhong:

Thanks again to the three speakers, and thank you all. Today's press conference concludes here.

Translated and edited by Chen Xia, Guo Yiming, Fan Junmei, Cui Can, Gong Yingchun, Zhu Bochen, Zhang Rui, Li Xiao, Li Huiru, Wang Yanfang, Wang Wei, He Shan, Zhang Junmian, Zhou Jing, Wang Qian, Huang Shan, Kenneth Teh Chiu Soong. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

Speakers:

Han Changfu, director of the Office of the Central Rural Work Leading Group, minister of agriculture and rural affairs

Liu Yongfu, director of the Office of State Council Leading Group of Poverty Alleviation and Development

Chairperson:

Zhao Jiangtao, person in charge of the Press Center for the Celebration of the 70th Anniversary of the Founding of the People's Republic of China

Date:

Sept. 27, 2019

Zhao Jiangtao, person in charge of the Press Center for the Celebration of the 70th Anniversary of the Founding of the People's Republic of China: 

Ladies and gentlemen, media friends, good morning. Welcome to the third press conference held in the press center. The theme of this conference is rural revitalization and poverty alleviation. 

Since the founding of the People's Republic of China in 1949, substantial developments have been achieved in the work related to agriculture and rural areas. Remarkable achievements have been recorded, indeed. The Chinese people have risen up and become rich. With the continuous progress of poverty alleviation, we are getting closer to completing the task of building a moderately prosperous society in all aspects.

Today, we are delighted to invite Mr. Han Changfu, director of the Office of the Central Rural Work Leading Group and minister of agriculture and rural affairs, and Mr. Liu Yongfu, director of the Office of State Council Leading Group of Poverty Alleviation and Development, to brief you. They will make an introduction of relevant work and answer some of your questions. 

Now, I'll give the floor first to Mr. Han Changfu.

Han Changfu, director of the Office of the Central Rural Work Leading Group, minister of agriculture and rural affairs:

Ladies and gentlemen, media friends, good morning. 

Monday marked the second Chinese Farmers' Harvest Festival. General Secretary Xi Jinping wrote a congratulatory letter to all Chinese farmers on this occasion. He pointed out that, with a solid foundation laid by agriculture, we have full confidence in national development. This is a ringing endorsement of China's achievements in agriculture and rural areas in the past 70 years. 

Over the past 70 years, since the reform and opening up program was launched in 1978, and especially the holding of the 18th National Congress of the Communist Party of China (CPC) in 2012, China has recorded remarkable development in its agricultural endeavors and rural areas. I want to introduce this from five different aspects.

First, we successfully addressed the problem of hunger in the country. The Chinese people longed for adequate food, but were unable to achieve it for thousands of years. Under CPC leadership, we were able to realize that dream. In 1949, China's total grain yield was only 226.4 billion jin (1 jin=0.5 kilogram). Now, the figure has been at a stable level above 1.3 trillion jin for four years. The supply of edible oil, vegetables and fruit have also been adequate. China feeds approximately 20% of the world's population with 9% of the available arable land. This is widely recognized as a miracle in global agricultural history. It showcases the superiority of socialism with Chinese characteristics.

Second, absolute poverty has been basically eliminated in rural areas. In the initial years after the reform and opening up in 1978, a total of 770 million people lived in poverty in rural areas. By the end of 2018, the figure had fallen to 16.6 million. In 2020, poverty will be completely eliminated. Adjusted for inflation, the annual per capita disposable income of farmers reached 14,617 yuan, a 40-fold increase from 1949. More than 99% of administrative villages are linked to paved roads. The new rural cooperative medical insurance system, rural old-age insurance system and compulsory education cover all in rural areas.

Third, agriculture has witnessed a qualitative leap in modernization. Revolutionary changes have taken place regarding production methods. Technology now contributes to 58.3% of agricultural production. Improved seeds are used in all regions. The total area of quality farmland has reached 640 million mu (1 mu=0.67 hectare). Machines have been used in regard to over 80% of the grain crops for plowing, sowing and harvesting. 

Fourth, regarding agriculture, rural areas and the well-being of farmers, a set of policies with Chinese characteristics have been launched. In 1978, China began to launch the household contract responsibility system with income linked to output. The agricultural tax implemented for over 2,600 years was finally eliminated. Agricultural subsidy system has been established. The current round of contracts covering rural land will be extended for another 30 years upon expiration. Reform separating land ownership, contract and management rights for contracted rural land has been launched. We will maintain a long-term commitment to these major policies.

Fifth, a new chapter in rural revitalization has been opened. At the 19th National Congress of the Communist Party of China (CPC), the strategy of rural revitalization was announced. This is another historic task we must fulfill after addressing hunger and poverty in the country. It is also the main focus of the work related to agriculture, rural areas and the well-being of farmers in the new era. In the past two years, the campaign of rural revitalization has got underway in all aspects. An integrated development of economic, political, cultural, social, ecological and Party building work has been promoted throughout the rural areas.

In the past seven decades, we have accumulated many precious experiences. Among them are two fundamental ones. First, we must always maintain the CPC's leadership in the work related to agriculture, rural areas and the well-being of farmers, to ensure it proceeds in the correct direction. Second, we must always maintain farmer's leading role, and respect their pioneering spirit.

Presently, all works related to agriculture, rural areas and the well-being of farmers are proceeding toward a good direction. We will continue to study and implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. Particular attention will be given to General Secretary Xi Jinping's important instructions concerning our work. Guided by the strategy of putting agriculture and rural areas first in development, we will promote rural revitalization in all aspects, so as to make national agriculture stronger, the rural areas more beautiful and farmers more prosperous.

Zhao Jiangtao:

Thank you, Mr. Han. Now, Iet's invite Mr. Liu to give an introduction.

Liu Yongfu:

Good morning, media friends. Thank you for your continuous attention and support for China's poverty alleviation undertakings. Welcome to today's press conference.

The Chinese people will celebrate the 70th anniversary of the PRC founding in a few days. Over the past 70 years, the CPC has led the Chinese people of all ethnic groups in eradicating absolute poverty in the rural areas of the world's most populous developing country, creating a miracle of poverty reduction in national history.

In the past, the old and weak China were mired in poverty, and people overall lived in dire misery. The CPC and the Chinese government, guided by the principle of putting the people first, making use of the political advantages of the CPC's leadership and the socialist system, and regarding the eradication of poverty, made improving people's livelihood and achieving common prosperity as our unswerving goals. First, we focused on economic development, carrying out reform and opening up, and maintaining sound and steady economic development, laying a solid foundation for large-scale poverty reduction. Second, we included poverty alleviation and rural development into China's overall development strategy, formulate special plans after identifying poverty reduction targets and standards for different stages, and carried out a large-scale poverty alleviation program. Third, we have always upheld development-oriented policies in poverty alleviation, seeking to improve the working and living conditions of people in poverty-stricken areas, enhancing their capacity to increase production and their incomes by their own efforts. Fourth, we have adhered to a precise plan offering benefits for all, including special social groups. While promoting the development of rural areas, agriculture and farmers livelihood, we have given special care to poor people, carried out preferential and categorized policies, and helped all in real need. Fifth, we have mobilized participation by the whole society, and built a system that spans regions, government departments and organizations and involves all to address the challenges of poverty.

Since the 18th CPC National Congress in particular, the CPC Central Committee with Comrade Xi Jinping at its core, has taken poverty alleviation as a primary task and a defining indicator for building a moderately prosperous society in all respects, and launched a battle against poverty throughout society. We identified the targets and tasks for poverty alleviation, that is, by 2020, there must be no longer be any rural people living below the current poverty line; there must be no more impoverished counties, and regional poverty must be eradicated. We identified the basic strategy for targeted poverty alleviation, introduced a series of unconventional policies and measures, and established a policy system designed to achieve our objectives. Under the leadership of General Secretary Xi Jinping, Party secretaries at province, city, county, township and village levels have vigorously pushed forward the work on alleviating poverty; indeed, the whole Party has worked closely together to overcome difficulties. Over the past six years and more, we made decisive progress, with major historic achievements in poverty alleviation.

First, we made remarkable progress in targeted poverty alleviation. We reduced the population of rural people living in poverty substantially, and we will eliminate absolute poverty in rural areas soon. According to China's current standard, from 2013 to 2018, the number of people living in poverty in China's rural areas was reduced by over 80 million, meaning that the number of people lifted out of poverty amounted to more than 12 million each year. The poverty incidence rate across the nation dropped from 10.2% to 1.7%. Of the 832 identified impoverished counties, 436 have been lifted out of poverty.

Second, poor areas have taken on a new look now and lead economic and social development with poverty alleviation efforts. Poor areas have increased their investment in infrastructure and public services substantially, enhanced development capacity significantly, rapidly developed featured industries, improved the ecological environment dramatically, and improved the poor people's life with steady steps.

Third, China has greatly helped accelerate the pace of global poverty reduction through its own poverty reduction efforts, and contributed solutions to the global poverty reduction cause. As the first developing country to have achieved the U.N. millennium development goals, China planned and organized large-scale poverty alleviation and development, implemented strategies of targeted poverty alleviation in particular, figured out with a path of poverty alleviation with Chinese characteristics, and provided Chinese wisdom and solutions for global poverty reduction.

It is estimated that, under the current standard, about 95% of the poor people in China will be lifted out of poverty and over 90% of the poor counties will eliminate poverty by the end of this year. The Chinese nation will then eliminate absolute poverty in 2020. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we will make every effort to overcome difficulties, win the battle against poverty, and usher in the historic moment of completing the building of a moderately prosperous society in all respects.

Thank you, Mr. Liu. Now let's move into the Q&A session. You are welcome to raise questions focused on the theme of this press conference.

China News Service:

As China has a population of nearly 1.4 billion, food security has always been a matter of great public concern. My question is for Mr. Han. What is the current state of food security in China? In addition, will the damage caused by fall armyworms this year affect the grain output?

Han Changfu:

You have raised a crucial question. Ensuring adequate food supply for the Chinese people has always been the top priority for the Communist Party of China (CPC) and the Chinese government. As General Secretary Xi Jinping has stressed on many occasions, to ensure food security remains a perennial issue, and we must always give it great importance.

In regard to food security in China, since 2004, grain production has realized the goal of "15 good harvests in a row", which is a record-breaking achievement. The annual grain output in the past four years has been kept above 1.3 trillion jin (1 jin=0.5 kilogram), which translates to 470 kilograms a year per capita, clearly surpassing the average food security level set by the Food and Agriculture Organization (FAO). Therefore, China's food security has been ensured. Such achievement can be attributed to three main factors.

First, we strengthened the role of policy in providing robust support to ensure China's food security.

Second, we have spared no efforts to ensure that China's arable land area does not fall below the red line in terms of both quantity and quality. On the basis of designating permanent basic cropland throughout the country, we established and developed 1.06 billion mu (1 mu=0.67 hectare) of functional zones for grain production and protected areas for the production of major agricultural products. We have also worked to develop 80 million mu of high-grade cropland every year, so that, by 2022, the total area will reach1 billion mu.

Third, we have stepped up development of technical support in the agricultural sector. The average per-unit yield of grain crops has been raised to 374.7 kilograms, five times the level when the People's Republic of China (PRC) was founded

In regard to grain production this year, according to research by the Ministry of Agriculture and Rural Affairs, we are expecting the fifth consecutive good harvest with more than 1.3 trillion jin of grain output, on the condition that there won't be any major natural disasters such as typhoons and frosts in the next two weeks. We are also placing great importance to dealing with the problem of fall armyworms. Although, the pest was found in some 20 provinces this year, only about 2 million mu of farmland were damaged, which is a comparatively small figure. This should be attributed to our timely and effective measures of pest control and prevention. 

In conclusion, to ensure national food security is the top priority for the Ministry of Agriculture and Rural Affairs. As China's grain consumption is still in a stage of stubborn rise, and is tightly balanced, we need to continuously implement the country's food security strategy, increasing grain production based on farmland management and the application of technology, so as to further improve grain productivity and the overall crop structure.

With these issues in mind, we will work to ensure the long-term stability and high-quality development of China's food security endeavor, so that we always have control over our own food supply. Thank you.

China Discipline Inspection Daily:

May I ask Mr. Liu Yongfu, how to prevent the falsification and manipulation of numbers in poverty elimination, and how to consolidate the accomplishments of poverty alleviation and prevent people lapsing back into poverty? During the national two sessions in the past two years, you stressed dealing with corruption and undesirable work styles in the poverty alleviation field. So, how do you feel about the effects of handling these issues now? In what ways does the work need to be further strengthened? Thank you.

Liu Yongfu:

Thank you for your questions. Regarding prevention of the falsification and manipulation of numbers in poverty elimination, we mainly operate from three aspects: 

First, poverty alleviation should reach those who truly need it and deliver genuine outcomes. This requires us to realize three things truthfully, which are, pragmatic poverty alleviation work, solid support processes and true poverty alleviation outcomes.

Second, we should ensure we have strict standards and procedures for determining whether people have been lifted out of poverty. We have carried out rigorous evaluations and assessments to verify the numbers. And the results should be real and recognized by the whole society.

Third, stern measures have been taken to address falsification and manipulation of numbers in poverty elimination. We will make sure to rectify any case in a timely manner once it is detected, and we will hold anyone to account if they commit serious misdeeds.

To answer your second question about how to consolidate the accomplishments of poverty alleviation, I would make the following observations. First, we must ensure that poverty alleviation work delivers genuine outcomes; second, we must steadily continue the current poverty alleviation policies after the people concerned have got rid of their poverty; third, we must start from a long-term perspective, develop industries, increase employment, increase income, and ensure the poverty alleviation work has sustainable effects; fourth, we must provide timely assistance for those who unfortunately lapse back into poverty as they used to be and those who become newly poor people.

Your third question is about corruption and work style in poverty alleviation. The CPC central committee set 2018 as the year to improve the work style in poverty alleviation. Generally speaking, the campaign against corruption and undesirable work styles went smoothly, with outstanding achievements. The work style and abilities of officials at the grassroots are widely recognized. Of course, among them, there are still a few with an unacceptable work style. In these cases, we will seek to change, dismiss, criticize and educate them. Besides, we will promote the good ones and place them in important positions. By doing so, we can establish the correct orientation in appointing officials.

On the whole, there are fewer and fewer corruption problems in the field of poverty alleviation. For example, the proportion of using or allocating funds in breach of regulations has fallen from 15.7% in 2013 to less than 1% now, and we have had to punish fewer people. In addition, poverty alleviation officials, especially those working at the grassroots, have made significant contributions to poverty alleviation. They not only exhibit a good work style, but also work hard, and some have even made sacrifices and paid with their own lives. By the end of June this year, there were more than 770 people who died while working for poverty alleviation. Thank you.

Yomiuri Shimbun:

Currently, the poverty alleviation work targets sustainable development and encouraging entrepreneurship by the rural population. I have carried out interviews in the rural areas and noticed that some farmers don't have the relevant professional knowledge. So, my question is that what is the scale of rural industrial development across the country? Are there any specific statistics available? And what are the next steps for these new rural industries?

Han Changfu:

Your question is about how to lift rural people out of poverty through development of industries and entrepreneurship. General Secretary Xi Jinping has stressed that industries are the foundation of economy, and industrial development is key to poverty alleviation. Looking back over these years of much effort, spurring development of industries and entrepreneurship is the most effective way of lifting people out of poverty. I can share with you some data. To date, over 100,000 industrial bases related to the work of poverty alleviation have been built in the poverty-stricken areas. Thanks to the support of local leading companies and cooperatives, 92% of the rural poor households have been able to take part in the industrial development process.

We have noticed the issue you mentioned just now. The biggest challenge we face now in poverty alleviation is how to foster sustainable industries and establish a long-term, effective mechanism for stable poverty reduction. There still exist some other problems. For instance, the industries for poverty-relief purposes are generally weak and small in scale with short chains, and some of them need to solve the problem of homogeneity and strengthen competitiveness. We need to strengthen our work in the following three aspects:

First, we will strengthen fostering of specialized industries. Some poverty-stricken areas have unique ecological advantages which we can tap to develop distinctive industries.

Second, we will better connect production and sales. We have held various forms of promotional events to connect production with marketing. For example, many large e-commerce companies now take part in selling agricultural products from poverty-stricken areas, with efficient sales networks and channels established in many cities across the country. Such measures have played an important role in reducing poverty. We will focus on ways to connect production and marketing in an even more efficient way.

Third, we need to improve the interest-binding mechanism to encourage more poor households to participate in industrial development. A series of measures, including customized production, joint-stock partnerships, construction of industrial parks, managed services for agricultural production, and establishing poverty alleviation workshops, will be carried out. Those poor rural people with appropriate labor ability can take part in production activities, while those who lost this labor ability can receive benefits by taking up shares in a business. The central government has considered many preferential policies and allocated funds to help them share the benefits through the interest-binding mechanism.

Liu Yongfu:

I'd like to add something further. No matter whether encouraging farmers to start their businesses or developing local industries, there are many difficulties and problems in the poverty alleviation work. Some of them are rather serious. For example, some poor rural families may raise livestock, but the animals may get sick and die. Some of them try to grow fruit trees, but they don't know how to effectively prevent and control diseases and pests, and don't master the adequate fertilizing, pruning and fruit thinning methods, so they cannot have a good yield. We are taking measures as follows to cope with such issues.

First, we have organized training programs for poor rural people to enhance their skills, and we focus on training of entrepreneurship-based poverty relief leaders in poor villages. We plan to have 400,000 to 500,000 leaders in a total of 120,000 poor villages to help more villagers achieve prosperity. We already have more than 300,000 such role models in place.

Second, we have rolled out policies to support business startups by poor rural residents. For those poor people who lack initial funds for this purpose, the government will provide them with micro credit. So far, we have offered more than 580 billion yuan to over 14 million poor households, which means that nearly half of the identified poor households have received such financial support.

Third, we have carried out relevant guidance. We have introduced and promoted advanced experiences drawn from across the country and encouraged the participation of more professionals in poverty alleviation.

People's Daily:

It has been two years since the rural revitalization strategy was put forward. What measures have the Office of the Central Rural Work Leading Group and the Ministry of Agriculture and Rural Affairs taken to implement the strategy and what achievements have been made?

Han Changfu:

The rural revitalization strategy was put forward at the 19th CPC National Congress. General Secretary Xi Jinping stressed that it was the key task of the work concerning agriculture, rural areas and the well-being of farmers in the new era, and efforts should be made to promote revitalization of rural industries, development of necessary talents, culture, ecology and organization. Over the past two years, the CPC Central Committee has placed great emphasis on implementation and all departments and localities have taken effective measures, enabling us to make a good start with positive results. During the process, efforts were mainly made in the following aspects: 

Han Changfu:

First, we emphasized proper planning. The CPC Central Committee issued a national rural revitalization strategy plan mapping out a series of key projects, plans and actions and launched a three-year national action to achieve improvements in the rural living environment. All provinces have issued their own provincial-level rural revitalization plans, while most cities and counties carried out a similar task. A blueprint has been drawn up at all levels with clear assignments and agendas. 

Han Changfu:

We promoted the "Zhejiang experience". When General Secretary Xi Jinping worked in Zhejiang Province, he arranged and pushed forward the implementation of the project of "One Thousand Demonstration Villages, Ten Thousand Renovation Villages", which created a batch of beautiful villages with a pleasant living environment, offering an example for other places to learn from. Now, when delegations from elsewhere visited Zhejiang, there is no need to arrange special routes as they can see beautiful villages everywhere. Zhejiang is now being built into a rural revitalization demonstration province guiding implementation of the national strategy.

Han Changfu:

Third, we carried out work through a carefully planned layout. Last year, we focused on making an overall arrangement. Following the requirement of building rural areas with thriving businesses, a pleasant living environment, displaying good social etiquette and civility, effective governance and prosperity, the CPC Central Committee has issued guidance on developing rural industries, improving the living environment and enhancing governance and civility. Last year, the revenue of leisure agriculture and rural tourism exceeded 800 billion yuan and the online sales of agricultural products totaled 300 billion yuan. Rural areas carried out waste and sewage disposal and a "Toilet Revolution", and a total of 10 million rural households saw their toilets revolutionalized last year.

Han Changfu:

Fourth, we stepped up the provision of systematic assurances. Recently, the CPC Central Committee issued the CPC Rural Work Rules, forming the first regulation of the Party on rural work. It provided political and organizational guarantees for implementing the strategy. What's more, now we are undertaking research on compiling reform plans to introduce more land sales revenues to agriculture and the rural areas.

Han Changfu:

To implement the rural revitalization strategy, the CPC Central Committee has put forward three phased goals to be reached by 2020, 2035 and 2050 respectively. We will follow the requirement, earnestly advance all the work and make solid progress by 2020. Thank you.

China Media Group:

I would like to ask Mr. Liu a question. We have established the basic requirements and core objectives for lifting impoverished people out of poverty by 2020, so that the rural population will no longer have to worry about having adequate food and clothing, and are assured access to a full program of compulsory education, basic medical treatment and housing. In April this year, General Secretary Xi Jinping made special arrangements at a symposium on dealing with the issue of "two no worries and three guarantees". I would like to invite Mr. Liu to brief us on the progress in this regard. Thank you.

Liu Yongfu:

"Two no worries and three guarantees" are the core objectives of the poverty alleviation work aiming to eliminate absolute poverty so as to meet three standards. First, farmers' per capita annual net income will reach around 4,000 yuan. Second, to realize the "two no worries", which refers those who have been living in poverty no longer having any worries about their food and clothing needs, as well as the goal to ensure they all have access to safe drinking water. Third, to achieve "three guarantees", which refers to giving impoverished people full access to compulsory education, basic medical treatment and housing security. Our job will never be completed if these aforementioned standards are not met. After the symposium in Chongqing this April, we have carried out the following actions:

Liu Yongfu:

First, we have adhered to established standards. To what do these standards refer? Compulsory education is guaranteed. It means that all school-age children and adolescents have access to nine years of compulsory education. We will ensure that all of them are able to go to school and will not face the prospect of having to drop out at any stage. Basic medical treatment is guaranteed. It means that those who have been living in poverty will gain participation in the basic medical care insurance, serious disease insurance and medical aid. We have to make sure that medical institutions based in counties, townships and villages are fully accessible to impoverished people when they suffer common or chronic diseases, and ensure that they can afford the expense of the care involved. Housing security is guaranteed, which means that the housing conditions of rural people, the impoverished portion in particular, should be carefully evaluated. Drinking water safety is guaranteed, which means that people who have been living in poverty will have access to clean and safe drinking water.

Liu Yongfu:

Second, we have clarified operational responsibilities. First, the central government undertakes overall planning, which means the major authorities of the central government should take the responsibility to provide guidance in the fight against poverty. Second, governments at provincial level undertake the major responsibility to specify standards and make detailed plans that will then be strictly implemented by city and township governments step by step, so that every single family will finally escape from poverty. Third, we have conducted a survey and solved problems accordingly. A comprehensive investigation has been carried out nationwide since April, with more than five million people being found to have suffering from the problems related to the "two no worries and three guarantees", including cases of youngsters dropping out of school, families having no access to medical treatment, living in dilapidated housing and exposed to unsafe drinking water. Over three million of them have managed to escape from this situation up until now, and the remaining more than 1.7 million people are expected to turn the corner by the end of this year. 

Hong Kong's Bauhinia Magazine:

Last year, the National People's Congress successively publicized amendments to the Land Administration Law and the Law on Rural Land Contracting, which have attracted great attention from all walks of life. My question is for Mr. Han. What progress has been made in deepening reform of the rural land system?

Han Changfu:

You raise a very important question. China's rural reform began with the land system. In the next phase of deepening this reform, we will continue to focus on properly handling the relationship between farmers and land. Specifically, our work will focus on the following "three pieces of lands."

Han Changfu:

The first piece is contracted rural land. Reform in this regard aims at improving the system for separating ownership, contract and management rights for contracted rural land, and well organizing the extension of current rural land contracts by another 30 years. We will ascertain the collective ownership of rural land, stabilize the contractual rights of rural households, and introduce more flexible policies over land management rights. We will work to further activate the powers and functions of rural land, cultivate new types of agricultural businesses, and facilitate the development of appropriately scaled-up agricultural operations. Presently, 540 million mu (about 36 million hectares) of arable land has been transferred among various entities across the country, and 72 million rural households have been able to participate in the land transfer process. The extension of the current rural land contracts by another 30 years was a decision made by the 19th National Congress of the Communist Party of China (CPC), which has reassured farmers and has also been written into the revised Land Administration Law. From the first round of land contracting, the system in rural areas will have thus been stabilized for 75 years, providing strong reassurance.

Han Changfu:

The second piece is rural collective land designated for business-related construction. The newly revised Land Administration Law makes it clear such land can enter the market directly when the transfer is in line with planning requirements and is approved by more than two-thirds of the members of the collective economic organizations involved, which is a major reform and innovation. It is estimated that there is more than 42 million mu (about 2.8 million hectares) of rural collective land designated for business-related construction, becoming an important source of farmers' property income.

Han Changfu:

The third piece is rural land used for private housing. This is an important property right for farmers. In this regard, pilot reforms were carried out in 33 county-level administrative areas in 2015. Rural land used for private housing is closely related to the vital interests of farmers and the stability of all rural areas. Therefore, in the next stage, we will select another batch of counties and cities to deepen pilot reforms in accordance with the principle of advancing the reform on rural land used for private housing in a steady, prudent manner.

Economic Daily:

Poverty alleviation work in the extremely poor areas has long been drawing public attention. In 2017, General Secretary Xi Jinping set out clear requirements for winning the battle against deep-rooted poverty. Would you please give us a brief introduction to the achievements you have made up to now and your future arrangement? Thank you.

Liu Yongfu:

The issue of extreme poverty has been taking shape for thousands of years. The causes of the problem are complicated. Despite several rounds of poverty alleviation previously, we failed to lift the extremely poor areas out of poverty. This remains a daunting task in our battle against poverty. Those areas of extreme poverty should not lag behind in China's overall poverty alleviation efforts. 

First, we must adopt a clear approach. In accordance with the instructions of General Secretary Xi Jinping and the arrangements of the CPC Central Committee and the State Council, the central government provides strong support in the fight against poverty in the three regions and three prefectures identified as being affected by extreme poverty, namely Tibet, the Tibetan ethnic areas in Sichuan, southern Xinjiang, Liangshan in Sichuan, Nujiang in Yunnan, and Linxia in Gansu. Meanwhile, each province is seeking to tackle its extreme poverty issue within its own geographical jurisdiction. All the central government departments are required to provide support for poverty alleviation in extremely poor areas.

Second, we must identify which are the extremely poor areas most needing help. Apart from the aforementioned three regions and three prefectures, there are many other pockets of extreme poverty, such as Zhaotong in Yunnan and Bijie in Guizhou, which need to be identified and assessed by local provincial governments. Third, we must expand support for poverty alleviation in the extremely poor areas, with greater efforts being made by local communities, as well as greater allocation of personnel and budgetary input by central and provincial governments.

The implementation of a three-year action plan for poverty alleviation in the extremely poor areas has been progressing ahead of schedule. Up to now, nearly 80% of the planned funding has been made available, while we still have over a year to implement the plan in its entirety. Last year, the number of poor people in the three regions and three prefectures affected by extreme poverty fell from 3.05 million to 1.72 million, with 1.33 million people being able to escape from their chronic poverty. Going forward, we will continue focusing on our poverty alleviation work related to the extremely poor areas with as much care and intensity as ever. A time limit will be set for the fight against poverty under the supervision of relevant authorities in some localities where the implementation is deemed to be falling behind schedule. Thank you. 

Zhao Jiangtao:

Thanks for your careful attention and attendance today. The press conference is hereby concluded. Thank you all.

Translated and edited by Chen Xia, Zhang Jiaqi, Zhu Bochen, Zhang Rui, Cui Can, Mi Xingang, Gong Yingchun, Li Jingrong, Li Xiao, He Shan, Huang Shan, Zhang Junmian, Yuan Fang, Fan Junmei, Li Huiru, Wang Yanfang, Geoffrey Murray. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

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Speakers:

Chen Baosheng, minister of education

Huang Shuxian, minister of civil affairs

Zhang Jinan, minister of human resources and social security

Wang Menghui, minister of housing and urban-rural development

Ma Xiaowei, head of the National Health Commission 

Chairperson:

Xi Yanchun, head of the Press Center for the Celebration of the 70th Anniversary of the Founding of the People's Republic of China

Date:

Sept. 26, 2019

Xi Yanchun, head of the Press Center for the Celebration of the 70th Anniversary of the Founding of the People's Republic of China: 

Ladies and gentlemen, journalist friends, good afternoon. Welcome to the second press conference held in the press center. Since the founding of the People's Republic of China in 1949, much headway has been made in improving the people's well-being, and the Chinese people have enjoyed more benefits and a stronger sense of happiness and security. 

Today, we are delighted to invite Mr. Chen Baosheng, minister of education, Mr. Huang Shuxian, minister of civil affairs, Mr. Zhang Jinan, minister of human resources and social security, Mr. Wang Menghui, minister of housing and urban-rural development, and Mr. Ma Xiaowei, head of the National Health Commission, to attend this conference. They will introduce China's efforts to meet people's new expectations, and how it will ensure and improve people's well-being amid its development. 

They will make their introductions one by one. First, I'll give the floor to Mr. Chen Baosheng.

Chen Baosheng, minister of education:

Ladies and gentlemen, first of all, on behalf of the Ministry of Education and all people involved in the education sector, I'd like to show my gratitude and respect to you for your long-term support and concern for our work. In the past 70 years, China's education sector has witnessed enormous changes.

First, we can see the scale of our work from the sheer quantity of our country's educational needs. After over 70 years of hard work, China has established the world's largest education system. I'll explain this point with three figures. First, presently, China has around 519,000 schools of all levels and categories. Second, approximately 276 million people are studying in various educational institutions. Third, there are 16.7 million professional teachers in the country. 

Second, the growth in quality reflects our growth in competence. After 70 years of hard work, the quality of our overall education system in China now ranks in the global upper-middle range. Take higher education for example. I'd like to share four figures with you. All of them are 60%. Currently, 60% of the country's high-level personnel, 60% of the country's basic research projects and major research tasks, and 60% of the country's key laboratories are based in institutions of higher education. Also, 60% of the country's three most important science-tech awards have been won by these institutions. This is a showcase of China's overall national strength.

Third, improvements in structure reflect the enhancement of functions. So far, China has established a complete education system with a balanced distribution of subjects and a proper structure. In the past 70 years, over 270 million people received higher education or vocational training in China. Of all new laborers, 48.2% have received higher education, with the average number of years of schooling being 13.6.

Fourth, the level of opening up reflects the growth of our influence. In the past 70 years, especially after the reform and opening up in 1978, China's education system has kept opening itself to the world. It has become one of the major forces in international communication and cooperation. The quality and special characteristics of China's preliminary education have been widely recognized in the world. China's textbooks have been introduced in many other countries. Chinese students have achieved good results in the tests of the Program for International Student Assessment (PISA). Presently, China is the largest source of overseas students in the world. It is also the top destination country for overseas study in Asia. China's education system has become increasingly influential in the world. The country has also become a member state of the Washington Accord, which outlines mutual recognition, between the participating bodies of accredited engineering degree programs.

Fifth, the establishment of various mechanisms reflects the support to the system. The leadership of the Communist Party of China (CPC) has always been upheld in the education system. In primary schools, middle schools and colleges, there are coherent systems to promote ideological works and cultivate talent. In 2012, government spending on education accounted for 4% of the national GDP, and this proportion has been basically unchanged for seven years. In 2018, the country's total investment in education was 4.6 trillion yuan, growing 13.4% annually on average from 1949. This figure is very high. The investment in education has become the largest share of government spending. 

Xi Yanchun:

Thanks for Mr. Chen Baosheng's introduction. Now I will give the floor to Mr. Huang Shuxian.

Huang Shuxian:

Ladies and gentlemen, friends from the media, good afternoon. I am glad to brief you about the achievements we have made in civil affairs since the founding of the People's Republic of China (PRC).

Over the past 70 years, the civil affairs authorities, in line with the central work of the Party and the State across different periods, have been committed to securing and improving the people's livelihood.

After the founding of the PRC, civil affairs organs at various levels made unrelenting efforts to provide disaster relief to rural areas, offered living subsidies to the disabled, the elderly, and orphans in cities, and provided shelters and education for vagrants and beggars. Benefits were granted to family members of revolutionary martyrs and military personnel. Demobilized soldiers were properly settled. Government at the primary level was consolidated. We have exerted great efforts in the publicity of the marriage law, demographic census, mobilization of migrant workers, management of administrative divisions, registration of social organizations, and funeral services management. In other words, civil affairs organs played an important role in healing the trauma of a war-torn country, maintaining social order, consolidating the new government, and promoting socialist reform and development.

Since the reform and opening-up policy was adopted in 1978, especially after the 18th National Congress of the Communist Party of China (CPC) in 2012, China has seen historic developments and achievements in civil affairs.

First, social remedies have been institutionalized rather than be dependent on temporary measures. A social relief system based on subsistence allowances has been established, ensuring basic living standards of about 60 million people in difficulties each year.

Second, the scope of elderly care services has gradually expanded from the underprivileged to all elderly people. An elderly care system with Chinese characteristics that is based on families, supported by communities, supplemented by organizations and integrates elderly care and medical services has been formed. There are now 173,300 elderly care organizations and facilities of various kinds with 7.353 million beds for the elderly. A support system for people living in extreme poverty in both urban and rural areas has been fully established.

Third, China's child welfare system has expanded to cover not just orphans but all the de facto orphans, left-behind children and children facing difficulties. More than 14 million children receive social assistance services each year. In addition, 10.06 million disabled people living in poverty and 11.93 million severely disabled people have benefited from two subsidy policies.

Fourth, we have abolished the compulsory sheltering and transfer of vagrants and beggars and resorted to voluntary acceptance and free assistance. Nearly two million people on average receive assistance every year.

Fifth, the system of community-level self-governance has been established as one of China's basic political systems, and has been continually improved. 78.8% of urban communities and 45.7% of rural communities have developed facilities for comprehensive services. The number of professional social workers has exceeded one million, and there are over 120 million registered volunteers. 

Sixth, social organizations have seen orderly development. The number of social organizations of various kinds has reached 835,000. Charity work, which used to be voluntary and scattered, has become law-based, better organized and regulated. In 2018, social donations from across China reached 90 billion yuan.

Seventh, the structure of administrative division has been optimized. We have completed a boundary survey and two rounds of national surveys of geographical names.

Eighth, we have continually improved the administration of marriage registration. In recent years, nearly 14 million marriage registration applications were handled on average annually.

Ninth, reform of funerals and cremation administration has been deepened, with the country's cremation rate reaching 50.5%.

Tenth, the CPC's leadership over the civil affairs has been strengthened. In 2018, the Ministry of Civil Affairs was approved to establish three new departments, namely, a department of elderly care services, a department of child welfare , and a department of charity promotion and social work , which has boosted the functions of civil affairs authorities.

In the future, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will fully implement General Secretary Xi Jinping's instructions on civil affairs work and the decisions of the CPC Central Committee to better fulfill our duties.

Xi Yanchun:

Thanks for Mr. Huang Shuxian's introduction. Now I will give the floor to Mr. Zhang Jinan.

Zhang Jinan:

Ladies and gentlemen, friends from the media, I would like to express my gratitude to all of you for your long-time concern and support for our work.

Employment is pivotal to people's well-being and social security provides a safety net for people. The CPC and the government have always attached great importance to employment and social security. In particular, since the 18th National Congress of the CPC, the CPC Central Committee with Comrade Xi Jinping at its core has prioritized employment in economic and social development, and considered the building of the social security system an important means to achieve common prosperity. A series of important policy decisions have been made, bringing about remarkable achievements.

China's employment has long remained stable, as such we have achieved fuller employment.

First, the scale of employment has been continually expanding. The number of employees increased from 180 million in 1949 to 780 million in 2018, an increase of 3.3 times. Between 1949 and 2018, China's population saw an increase of 160%. For six consecutive years, China has added over 13 million urban jobs annually. The number of newly created urban jobs every year is close to the total number of urban jobs in 1949, which stood at 15 million.

Second, the employment structure has been improving. The employment structure in urban and rural areas has seen historic transformation. In 1949, urban jobs only accounted for 8.5% of all jobs in China, while the proportion of urban employment hit 56% in 2018. Employees in tertiary industries accounted for 9.1% of the total employed workforce in 1952, in 2018, the proportion rose to 46.3%.

Third, the quality of employment has been improving. The vocational skills of employees have significantly increased and the number of professionals with specialized technical skills has grown. The incomes of employees have been rising and their rights and interests have been better protected.

With regard to social security, China has basically established a social security system that covers both urban and rural residents. 

First, the number of people covered by the system is growing. In 1951, the number of workers with labor insurance was 2.69 million, and now the basic old-age insurance covers more than 950 million people. There are more than 200 million people with unemployment and work-related injuries insurance, covering most of the job categories.

Second, the social security capacity has been continuously enhanced. The social security fund is expanding, with the cumulative balance of the three insurance funds for pension, unemployment and work-related injuries totaling 6.8 trillion yuan. 

Third, the quality of social security has been continuously improved. Basic old-age pensions have continued to increase, and compensation for unemployment and work-related injuries have increased steadily. In just a few decades, our country has basically established the largest social security safety net in the world. In 2016, the International Social Security Association (ISSA) awarded the Chinese government the Award for Outstanding Achievements in Social Security.

In the future, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will stick to the people-centered development philosophy, and strive to achieve fuller employment and create higher quality jobs. We will establish a fairer and more sustainable social security system, so that the fruits of reform and development can be shared by all people in a fairer way. Thanks.

Xi Yanchun:

Thank you, Mr. Zhang Jinan. I will give the floor to Mr. Wang Menghui.

Wang Menghui:

Good afternoon, ladies and gentlemen. Over the past 70 years since the PRC's founding, and in particular since the 18th CPC National Congress, we have made remarkable achievements in housing and urban and rural construction under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core. The achievements mainly cover the following four aspects:

First, we significantly improved the people's housing conditions. Since the PRC's founding 70 years ago, the CPC and the country always attached great importance to people's housing. Through continuous efforts, we basically addressed the housing needs of urban and rural residents in this large country with a population of nearly 1.4 billion. The per capita floor space of urban residents increased from 8.3 square meters in 1949 to 39 square meters in 2018, and that of rural residents increased to 47.3 square meters. We built over 80 million units of government-subsidized housing of various types and housing for people displaced by rebuilding initiatives, helped over 200 million people out of their housing difficulties, and built up the world's largest housing guarantee system.

Second, we pushed forward with urban construction with each passing day. China's process of urbanization created a miracle in the history of the world's urban development. The number of cities in China increased from 132 in 1949 to 672 in 2018, and the country's urbanization rate increased from 10.6% to 59.6%. Since the reform and opening up, up to 96.7% and 98.4% of people in urban areas can now get access to fuel gas and tap water respectively.

Third, we renewed the countryside with a new look. Great changes took place in the countryside since the PRC's founding. Since the 18th CPC National Congress in particular, we supported 17.94 million rural households in renovating their dilapidated houses, and guaranteed the housing security of over seven million registered poor households. We improved the living environment in rural areas by treating rural garbage and sewage. We also mounted our efforts in the protection of traditional villages. With 6,819 villages included in the protection list of traditional Chinese villages, this was the world's largest cluster of agricultural heritage to be protected.

Fourth, we constantly reached new heights in the construction industry. We made continuous technological progress in engineering construction, and built up a large number of world-class major projects, such as the Hong Kong-Zhuhai-Macao Bridge and Beijing Daxing International Airport. China's construction industry is rapidly growing more globallyand plays an important role in the construction of the Belt and Road.

At this new historic starting point, we will continue following the guidance of the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and promoting the high-quality development of housing and urban and rural construction while staying committed to a people-oriented philosophy. Thank you.

Xi Yanchun:

Thank you, Mr. Wang. Now let's welcome Mr. Ma who will give us an introduction.

Ma Xiaowei:

I would like to thank the international media friends for your continuous concern and support for China's medical and health undertakings.

Healthy people are an important symbol of a prosperous nation and a strong country. Since the PRC's founding 70 years ago, the CPC and the government have always paid great attention to medical and health care, and developed the country's basic medical and health care system with a people-oriented philosophy in mind. Since the 18th CPC National Congress in particular, under the leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we treat people's health as a strategic priority. We have stepped up efforts to build a healthy China, and embarked on a new journey to develop China's medical and health services.

Chinese people's health have continued to improve- over the past 70 years. The life expectancy increased from 35 years old to 77 years old, the infant mortality rate dropped from 200‰ to 6.1 ‰, and the maternal mortality rate dropped from 1500 in every 100,000 to 18.3 in every 100,000. The main health indicators of the Chinese people all performed better than the average scores of people from middle- and high-income countries. China has addressed the medical and health care of one sixth of the world's population with relatively less investment, and figured out a path with Chinese characteristics for its medical and health undertakings. The achievements mainly cover the following aspects:

First, the medical and health network, which offers people greater access to medical and health services have continuously improved. China established a three-tier network of medical treatment, precaution and health care. It covers urban areas (provinces, municipalities and counties) and rural areas (counties, townships and villages) and makes it possible for all to enjoy basic medical and health care. Private hospitals in the country also developed rapidly. In 2018, beds in private hospitals accounted for over 26% of the total beds in China and there were up to 8.4 million beds in over 990,000 medical and health organizations, there were 12.31 million people working in the healthcare system, and 2.59 doctors and 2.94 nurses to every 1,000 people, exceeding the average level of middle-income countries.

Second, our attention and investment in health care have increased constantly, which has gradually reduced people's economic burden with medical fees. In 2018, China's total health expenditure accounted for 6.6% of its GDP. There was a constant rise in government subsidies for basic medical insurance for urban and rural residents and subsidies per capita for basic public health services. The basic medical insurance system already covers over 1.3 billion people, with the insured rate has stabilized at 95%. In a relatively short time, we built up the world's largest basic medical insurance network. We also cut the proportion of personal health expenditure in total health expenditure to 28.6%, the lowest level since 2000.

Third, we curbed the transmission of major diseases by prioritizing precaution. China implemented a planned immunization system, which brought down the number of people with vaccine-preventable infectious diseases to a very low level. We curbed the transmission of major diseases such as AIDS, tuberculosis, schistosomiasis and Hepatitis B, and achieved gratifying results in the precaution and treatment of occupational and endemic diseases. We also successfully handled SARS, H7N9 and other major outbreaks while relying on the country's own team and system of addressing public health emergencies.

Fourth, the capacity to offer medical services improved continuously. In 2018, there were over 8.3 billion visits to outpatient and emergency departments, and over 250 million people were discharged from hospitals. We spared no efforts in alleviating poverty by addressing health issues and safeguarding the health of women, children, the elderly, the disabled and the poor, and promoted more equitable health services.

Fifth, we made use of the strengths of traditional Chinese medicine (TCM) and promoted its traditional aspects and innovation. We strengthened the training of TCM experts, selected and awarded TCM masters, and promoted appropriate TCM techniques and the development of TCM overseas.

Sixth, we expanded our exchanges with the rest of the world on health-related causes and participated in global health governance. China sent 26,000 medical team members to 71 countries, and treated 280 million patients in total. The country also intensified its cooperation with international organizations to fight against Ebola in west Africa, and signed over 160 cooperation agreements on health with international organizations and relevant countries and regions.

Our next step is to continue promoting a healthy China and the high-quality development of medical and health undertakings to serve the people. Thank you.

Xi Yanchun:

Thank you, Mr. Ma Xiaowei. Next, let's give the floor to our media friends. Please identify the news organization you represent before asking your questions. Now, the floor is open for questions.

CCTV:

My question is for Mr. Ma. Earlier, you introduced the progress in health-related work in China during the past seven decades. And we know well from our own experience that the medical services have improved a lot in recent years. What measures will you take next to better resolve the problem of access to and affordability of medical services? Thank you.

Ma Xiaowei:

Resolving the problem of access to and affordability of medical services is a prolonged major issue in our health work. To deepen the reform of the medical and health care systems, and make medical services more accessible, we should optimize the distribution of medical resources and try to solve the problem from a developmental perspective. Here, we have four major considerations.

First, we will steadily progress in our efforts to develop national medical centers. We will improve the level of medical and health services of all provinces, nurture local doctors skilled in the relevant medical disciplines so that patients with difficult and complicated diseases can be treated and cured within their provinces, rather than rushing to hospitals in metropolises like Beijing, Shanghai and Guangzhou. Recently, the CPC Central Committee for Comprehensively Deepening Reforms has adopted a plan on the pilot construction of regional medical centers. Also, we have signed agreements with four provinces on jointly building regional medical centers.

Second, we will continue to enhance the medical capabilities of county-level hospitals. Together with the Ministry of Finance, we have launched the project "ten thousand doctors giving support in rural medical care" since 2004, consistently encouraging urban Grade-A tertiary hospitals to extend support to rural county-level hospitals. At present, 500 county hospitals have reached the level of tertiary hospitals. Next, we plan to help another 500 county hospitals and 500 county TCM hospitals reach the level of tertiary hospitals by 2020.

Third, we will consolidate regional medical resources. Nowadays, people are used to rushing into big hospitals to treat both minor and serious illnesses. We will improve medical services at the grass-roots level, develop healthcare consortiums in urban areas, with big hospitals guiding smaller hospitals. We will also develop medical communities in rural areas, linking township hospitals to county hospitals. By upgrading the overall level of grass-roots medical services, we hope to find a good solution where serious illnesses are treated at hospitals, while treatments for minor illnesses and rehabilitation are available within the communities. 

Fourth, we will advance the reform of health insurance payouts, which are very closely linked to the categorization and division of patients. The medical fees charged by a big hospital are different from that of a small hospital. A reform that will institute differentiated or tiered charges is now carried out to create different categories for reposition of patients.

By putting current medical resources to good use, we will promote the tiered diagnosis and treatment model to further categorize and divide patients into different groups. A major task in our medical reform is to carry out the standardized training of resident physicians. In China, medical students must finish a five-year undergraduate program before graduation. We then help graduates undergo clinical training at large hospitals for another three years. After training, the expertise level of village doctors, and doctors from big or small hospitals is relatively similar. 

As for the affordability of medical services, our focus is on the following three areas. First, we will develop our medical care system. China's current healthcare insurance system is based on a low-level model with widespread coverage but is now undergoing rapid and sustainable changes and development. However, the system is still somewhat weak in the areas of critical illnesses and offsetting high medical expenses in the event of emergencies or critical illness. In the meantime, we are also developing commercial insurance schemes.  

Second, we will upgrade policies related to medical supplies. We have cut the prices of some imported patent drugs. After negotiations, the prices of 17 cancer drugs were slashed and these drugs were included in the national medical insurance catalog. Also, we conducted a volume-based drug procurement scheme, which reduced transaction costs, especially costs incurred in the intermediary links of the production of drugs. 

Third, we will enhance the management of hospitals. We must strengthen the professional ethics and work practices of doctors and increase supervision in the healthcare industry. 

China Daily:

Having talent with professional skills is important in promoting economic and social development. The WorldSkills Competition has just concluded and Chinese contestants have excelled in this event. What will China do to further promote the development of skilled talents? Thank you.

Zhang Jinan:

Thank you for your concerns about the development of talents with professional skills. The WorldSkills Competition is also being called "WorldSkills Olympics.” Back in 2011 when China first participated in this event, we left with just one silver medal. This year, Chinese contestants won 16 gold medals, 14 silver medals, and five bronze medals, ranking top in the gold medal list, the medal table, and the list of groups' total score. This is China's highest-ever ranking since 2011.

Not long ago, General Secretary Xi Jinping gave important instructions, fully recognizing the achievements of Chinese contestants in this event, and setting a higher standard for the further development of Chinese talents with professional skills. This provides a fundamental basis for our work in this field.

From a national perspective, developing talents with professional skills is important to support the endeavor to create "made in China” and "created in China” products and services. In addition, for businesses, talents with professional skills are the key foundation to improve its competitiveness. For employees, professional skills are also an important pre-requisite to find high-quality employment. The next step to develop talents with professional skills can be summarized into these three aspects:

First, we will focus on one goal put forward by General Secretary Xi Jinping, which is to "speed up the training of a large number of high-quality workers as well as technical and skilled talents.”

Second, we will adhere to the principle of a "three factor-oriented” approach. First is an "ability-oriented” approach that focuses on improving employees' skills, abilities, and capacity. Second is a "market-oriented” concept that training should be closely linked to the needs of society, industries, enterprises, and the need for personal development. Finally, a "problem-oriented” approach will also be adopted to address problems that exist in the training of skilled talents.

Third, we will highlight the "four aspects of enhancement.” 

First is to improve vocational training. We will step up our efforts to carry out large-scale vocational training, and have made a three-year plan to use the balance of 100 billion yuan in unemployment insurance as subsidies to train 50 million personnel. This plan is called "Project 315.” 

Second, we will make further institutional reform on the development of talents with professional skills. The reform will focus on establishing a mechanism for talent training, employment, evaluation, and incentive. This is the key to promote the development of talent.

Third, we will work to organize more competitions involving professional skills. As efforts are now being made to plan for the all-round national skills competition, we will also be committed to organizing the 46th WorldSkills Competition in Shanghai. 

The last aspect is to strengthen our publicity on talent development. Over the past few years, the CPC and the Chinese government have placed great importance on the development of talent, and the general situation has improved. However, the idea of "emphasizing degrees and theories while neglecting abilities and practices” still exist to a certain extent. This needs to be addressed in our publicity work.

Phoenix TV:

Care for the elderly is related to everyone of us. My question is for Mr. Huang. What achievement has China made in the past 70 years in regard to its care for the elderly? In addition, what measures will be taken in future to address this? Thank you.

Huang Shuxian:

The CPC Central Committee and the State Council have placed great importance on the issue of elderly care, and a stronger leadership has been formed to promote the development of this great endeavor. Since the founding of the PRC in 1949, especially since the 18th CPC National Congress in 2012, China's undertaking of elderly care and services has made historic progress. This can be demonstrated in the following aspects:

First, a system of elderly care services with Chinese characteristics has been established. We have built a multi-layered service system of elderly care. It is based on households, relying on communities, supported by institutions, and completed by combining medical and care services. By the end of June 2019, the number of elderly care institutions in China reached 29,900; the number of community-based elderly care institutions and facilities reached 143,400; and the number of beds for elderly care services totaled 7.353 million. More than 50% of elderly care institutions and about 40% of beds for elderly care services are run privately.

Second, the institution of elderly care services with Chinese characteristics has been basically established. 15 million seniors who are in financial difficulty now fall into the group that enjoys a minimum level of subsistence allowances while 4 million elderly people are part of the group that is being supported by the government. Major categories of elderly allowance have been disbursed at the provincial level, including old age allowance, subsidies for seniors in financial difficulty, and the allowance for those unable to cope with everyday life. Nearly 36 million elderly people have benefited from this.

Third, the quality and standard of elderly care services have improved. We fully implemented General Secretary Xi Jinping's important instructions on improving the quality of service in nursing homes, and have been carrying out special operations in this field for four consecutive years. We are continuing to increase the investment in facilities for elderly care, comprehensively eliminating the risks, and trying to make the elderly comfortable in nursing institutions.

Next, we will further open China's elderly care market, encouraging the development of elderly care and improving the system of elderly care services.

We will also expand the supply of elderly care services by establishing a comprehensive system accordingly. In addition, we will provide more diversified services for the elderly. We will further improve the quality of elderly care services so as to make sure it is reliable and safe.

Nanfang Metropolis Daily:

I have a question for Mr. Chen. Education receives much attention from the outside world. In the past 70 years, what have been the most distinctive characteristics and features of China's education system? 

Chen Baosheng:

Over the past 70 years, Chinese education has made great achievements and experienced a historic change. To summarize the characteristics and features in the simplest of words, they are "quick” and "equal.”

Chen Baosheng:

When the People's Republic of China was founded in 1949, the net enrollment rate of primary schools was only 20% and the number of college students was only 117,000 from a total population of 450 million. We completed the implementation of compulsory education in 20 years, while the process cost developed countries 100 years. Through 70 years of development, the gross enrollment rate of three-year preschool education reached 81.7%; the net enrollment rate of primary schools for children reaching school age reached 99.95%; the gross enrollment rate of junior middle schools was 100.9%; the gross enrollment rate of senior middle schools reached 88.8%; and the gross enrollment rate of higher education was 48.1%. 

The second feature is that it is equal. Pursuing equity is an important target of society and also the development of education.

Since the 18th CPC National Congress, under the firm leadership of the CPC Central Committee with Comrade Xi Jinping at the core, we have placed more emphasis on realizing education equity. First, giving a preferential treatment to rural areas. We realized synergies between urban and rural areas in school construction, staffing, standard quota of public expenditure per student, and standard of basic equipment and outfits. 99.8% of urban and rural schools managed to achieve the basic requirements needed to function as a school. Now when you go to the countryside, they always mention that their most beautiful place is the school. Second, promoting equity was weighted toward disadvantaged groups. We have established a financial support system for students from poor families ranging from preschool education all the way to postgraduate education. Over the past decade, we have supported nearly one billion students with funds totaling 1.45 billion yuan. We have also enhanced education for children with disabilities and made progress especially in groups with hearing, mental and visual impairment. Almost all countries with a population of over 300,000 have special education schools and the compulsory education enrollment rate of children with the above-mentioned three kinds of disabilities has reached over 90%. This is an important index of social civilization. Third, promoting equity was weighted toward minorities. Over the past years, we have offered classes for ethnic-minority students. The student number totaled 935,700 and it promoted education development in areas with large ethnic minority populations. Fourth, promoting equity was weighted toward poor areas. We implemented a special enrollment plan targeting students undergoing exams in rural and poverty-stricken areas and the number of enrolled students totaled 478,000. Following this current path, we will unceasingly accelerate our modernization of our education system, build strength in education and make our people satisfied. This is our general target. Thank you.

MASTV:

Mr. Wang, what have we achieved in guaranteeing housing security over the past 70 years and what's the future plan? Thank you.

Wang Menghui:

Over the past 70 years, we have set up the world's largest housing security system. As we know, China implemented a welfare housing system from 1949 to the initial period of reform and opening-up. The per capita floor space of urban residents was only 6.7 square meters in the initial period of reform and opening-up.

Since the reform and opening-up, we proactively explored urban housing reform, and in 1994, the State Council decided to deepen the reform. We accelerated the construction of government-subsidized housing projects to resolve the housing difficulties faced by low- and middle-income urban families. By 2007, the number of security housing units including low-rent housing, affordable housing and so on, totaled over 10 million. Since 2008, the government has introduced major construction projects to provide affordable housing to urban residents. By 2018, government subsidies had been used to build and renovate 70 million housing units in urban areas, 22 million poor people had received public rental subsidies, and 200 million poor people had received help to improve their housing conditions. Especially since the 18th CPC National Congress, government subsidies have been used to build and renovate 40 million housing units in urban areas, and 100 million poor people have received help to improve their housing conditions. Until now, social security has covered almost all those receiving subsistence allowances as well as low-income families, and housing difficulties for new citizens in urban areas have been relieved. The housing conditions for low- and middle-income urban families have also been greatly improved.

Next, we will focus on the following tasks:

First, continue to promote the development of public rental housing. We will gradually promote the mode of "government pay for the management services of public rental housing” so as to improve the level of management services.

Second, nurture and develop the rental housing market. We will expand the rental housing supply and try to resolve housing issues for new citizens in urban areas.

Third, develop joint ownership housing by the government and home buyers. We will encourage large and medium-sized cities with large populations and high housing prices to develop the system based on their local conditions.

Fourth, promote the renovation of run-down areas. We will focus on shanty town renovation in dirty, disorderly and old urban areas, state-owned industrial and mining areas, forests, and reclamation areas. 

Xi Yanchun:

The press conference has been going on for nearly 90 minutes. Last question please. Many foreign journalists have come today. Let's see if any foreign journalist wants to ask questions.

Lianhe Zaobao:

My question is about employment. We know that the Chinese economy is facing downward pressure due to the international situation. In an interview with the Russian media not long ago, Premier Li Keqiang mentioned that it is not easy for the Chinese economy to maintain a medium-to-high-speed growth of more than 6%. Therefore, I would like to ask Mr. Zhang, what impact does the economic downturn currently have on employment? Thank you.

Zhang Jinan:

Employment is an international problem. Of course, China has nearly 1.4 billion people and 900 million laborers, so the employment issue stands out more. Employment is closely related to economic development. However, the development of employment depends on either the speed of economic development or the structure of economic development. China has a large amount of jobs, but China's economy is large and the market is large. In particular, the tertiary industry has developed rapidly in recent years. The number of jobs is expanding, start-ups and innovations are active and growing, and new forms of employment are booming. These all have good fundamental effects on maintaining the stability of employment. It is important to know that we also have institutional and systematic advantages -- that is under the leadership of the CPC, we are able to mobilize resources for major undertakings. In response to this year's situation, the central government placed "stable employment" at the top of the "six stables." The employment situation in China has remained generally stable, which is not easy.

These are the main indications: First, the main indicators of employment are operating in a reasonable range. From January to August, the number of new jobs in urban areas was 9.84 million, and 89% of the annual target has been achieved. The national urban survey in August shows that the unemployment rate was 5.2%, lower than the expected control target of 5.5%. Second, the supply and demand of the market is basically balanced. In the second quarter, the ratio of job openings to job seekers in the overall talent pool was 1.22, and the market supply and demand continued to maintain an overall balance. Third, the employment of key groups such as college graduates and migrant workers has remained relatively stable. The number of our college graduates this year is 8.34 million, a record high, but their employment situation is basically the same as in previous years.

Presently and for the foreseeable future, new factors that influence employment are constantly increasing, and there are also many challenges to employment. However, we still have confidence to do a good job in the area of employment. Our main approach is to hold on to "one highlight" and implement "five efforts."

The "one highlight" is still to place a high priority on employment, regard employment as a priority goal of economic development, and regard stability and the expansion of employment as our baseline goals.

For "five efforts": the first is to reduce the burdens faced by enterprises. Stabilizing an enterprise and its available jobs, is to stabilize employment. We implemented the policy of lowering social security rates and this year, it is estimated that the reduction in social security rates will amount to more than 300 billion yuan for the whole year. Also for enterprises that have zero or few layoffs, we will increase our efforts to aid them and stabilize their job positions. We will also provide a series of policies such as social security subsidies, subsidized loans, and tax cuts for enterprises that offer jobs to those who find it difficult to get employment.

The second is to promote entrepreneurship which will drive employment. We will strengthen the implementation of the policy of giving secure loans to business start-ups, and provide related measures such as offering tax cuts to encourage entrepreneurship.

The third is to focus on vocational skills training. This is a powerful measure to solve the structural contradictions inherent in employment. The "Project 315" we just introduced is a national campaign to improve vocational skills, and it is an important measure.

The fourth is to improve the level of employment services. A total of more than 40,000 job fairs have been organized, and more than 50 million free services have been provided. We will increase our efforts in this aspect in the next step.

The fifth is to make efforts to ensure that basic requirements are met for people's basic livelihood. It is to continue to provide "one-to-one" aid for people with employment difficulties, to help families with no employment get jobs quickly, and to distribute unemployment insurance benefits in time to those who are unemployed, in order to ensure their basic living needs are met. Thank you.

Xi Yanchun:

Thanks again to the five speakers, and thank you to everyone here. This is the end of today's press conference.

.

Speakers:

Zhang Ge, executive director of the headquarters for support services and mass pageantry of the grand gathering;

Xiong Zhuo, executive director of the headquarters for volunteer services;

Pang Wei, executive deputy director of the performances department of the grand evening gala headquarters;

Xiao Xiangrong, chief director of the mass pageantry, deputy dean of the School of Arts and Communication of Beijing Normal University;

Ma Sai, head of the specialist team for celebration activities at Tiananmen Square, secretary of the Communist Party of China (CPC) committee of the Academy of Arts & Design, Tsinghua University;

Huang Cheng, representative of volunteers and fourth-year doctoral student at  the School of Economics and Management, Tsinghua University. 

Chairperson:

Tian Yuhong, head of the Press Center for the Celebration of the 70th Anniversary of the Founding of the People's Republic of China (PRC)

Date:

Sept. 25, 2019

Tian Yuhong, head of the Press Center for the Celebration of the 70th Anniversary of the Founding of the People's Republic of China (PRC): 

Ladies and gentlemen, friends from the media, good afternoon. Welcome to the second themed group interview held by the press center.

It's widely known that on the occasion of the 70th anniversary of the founding of the People's Republic of China (PRC), a grand mass pageantry and a series of exciting activities will be held in Beijing. The events have received much attention domestically and internationally. To help you get more information about them, today, we invited some of the organizers and participants of the events. They are:

Mr. Zhang Ge, executive director of the headquarters for support services and mass pageantry of the grand gathering;

Mr. Xiong Zhuo, executive director of the headquarters for volunteer services;

Ms. Pang Wei, executive deputy director of the performances department of the grand evening gala headquarters;

Mr. Xiao Xiangrong, chief director of the mass pageantry, deputy dean of the School of Arts and Communication of Beijing Normal University;

Mr. Ma Sai, head of the specialist team for celebration activities at Tiananmen Square, secretary of the Communist Party of China (CPC) committee of the Academy of Arts & Design at Tsinghua University;

Huang Cheng, representative of volunteers and fourth-year doctoral student at the School of Economics and Management, Tsinghua University. 

Thank you for attending this interview. The interview includes two sections. The guests will first give a brief introduction of the celebrations and then answer some of your questions.

Now, I will give the floor to Mr. Zhang Ge, the executive director of the headquarters for support services and mass pageantry of the grand gathering.

Zhang Ge:

Friends from the media, good afternoon. It's a pleasure for me to have the opportunity to give you an introduction of the mass pageantry for the 70th anniversary of the founding of the People's Republic of China (PRC).

Over the past 70 years, the Communist Party of China (CPC) has been committed to its original aspiration and mission, and led the Chinese people of all ethnic groups in forging ahead and achieving historic successes. The Chinese nation has made a tremendous transformation. It has stood up, grown rich, and is becoming strong. The pageantry aims to tell China's stories well, and fully demonstrate the faith, confidence and trust the Chinese people of all ethnic groups have in the CPC. 

The pageantry is divided into three parts based on the history of the PRC–the country's founding, reform and opening-up, and great rejuvenation. Approximately 100,000 people and 70 big floats will form 36 formations and three scenes, marching on the Chang'an Avenue from east to west and passing the core area of Tiananmen Square. The pageantry will showcase historic chapters of the PRC, including the founding of the country, the progress of the reform and opening-up drive and the undertaking of building socialism with Chinese characteristics, as well as the advent of a new era for building socialism with Chinese characteristics. In particular, great emphasis will be placed on the historic transformation and successes the country and the CPC have achieved since the 18th CPC National Congress, so as to highlight the theme of "jointly building the Chinese dream."

Participants in the parade will include people from all ethnic groups and all sectors, including representatives who are deliverymen and square dancing aunties. The parade will be enriched with songs, dances, props and sculptures showcasing distinctive characteristics of the times. We hope that everyone will be inspired by the "free, lively, joyful and cheerful" parade atmosphere on the National Day, and that the celebrations would resonate with the magnificent development and achievements of the country.

The floats this year were designed and produced to highlight the 70th anniversary of the PRC's founding and the new era. The people and the floats will display significant moments and memories over the past decades and showcase the progress of the country and social development. The themed floats will have vivid and clear images and objects, and combine traditional culture with modern craftmanship and technologies to present political and ideological themes. The local floats not only takes the overall atmosphere into account, but also highlights the characteristics of the provinces (prefectures and municipalities), Hong Kong, Macao and Taiwan, which will display regional achievements, the beauty of our motherland, as well as the happy life of people across the country.

The square will be decorated with distinctive features. The "red ribbon" scene symbolizes that the red gene connects the past, present and future; 70 red lanterns over the east and west roads of the square will join other parts of the celebration to stoke the festive atmosphere. A total of 70,000 doves and 70,000 colorful balloons will be released at the square on National Day.

Zhang Ge:

The celebratory parade has had three successful rehearsals in the Tian'anmen area and along Chang'an Avenue. The orderly organization and smooth operation in both areas lived up to expectations.

People who came from various sectors and participated in the rehearsals all showed their deep love and sincere affection for the country, which moved us a lot.

Finally, let's look forward to the big day of celebrations that will take place in front of Tian'anmen Square and beside Jinshui Bridge in six days, when we will "celebrate the motherland's birthday, share in its great glory and strive for the great revival together." Thank you.

Tian Yuhong:

Thank you, Mr. Zhang. Now, let's welcome Mr. Xiong who will give us his presentation.

Xiong Zhuo:

Media friends, good afternoon. It gives me great pleasure to brief you on the volunteer work for the celebrations of the 70th anniversary of the PRC's founding.

The smiles of volunteers are one of Beijing's best calling cards, and voluntary service is an important part of the service support in major events.

Beijing's leading group for the National Day Celebrations highly values volunteer work, and set up a volunteer command center to coordinate it. Earlier on, we recruited and trained over 160,000 well-qualified volunteers from universities, communities, companies and various sectors of society. Among them, over 10,000 will serve at the grand celebration and the gala, over 4,000 will serve at the large exhibition on achievements and parks, and close to 150,000 will contribute to the city's operation and security.

During the upcoming celebrations, the volunteers will behave in line with the spirit that General Secretary Xi Jinping has called for in his congratulatory letter to the second congress of the China Volunteer Service Federation. They will offer high-quality services, add more glamour to the "golden calling card" of Beijing Volunteers through their actions, and continue the exemplary spirit of Lei Feng in the new era.

That's all. Thank you.

Tian Yuhong:

Thank you, Mr. Xiong. Now, let's welcome Ms. Pang who will give us her presentation.

Pang Wei:

Ladies and gentlemen, media friends, good afternoon. Next, on behalf of the evening gala organizing department, I will introduce to you the celebration plans for China's 70th National Day.

Under the leadership of the Leading Group of the 70th Anniversary Celebration and the Leading Group of the Celebration in Beijing, the evening gala organizing department have been working to prepare for the celebrations on China's 70th National Day. Three rehearsals of the complete celebration have been held at the Tiananmen Square respectively on Sept. 8, 15, and 22.

The evening gala will be held at 8:00 p.m. on Oct. 1 at the Tiananmen Square, and will last for 90 minutes. It will have four parts - thematic performances, featured shows, mass celebration, and a fireworks show. Now, I will introduce the seven highlights of this year's celebration.

First, the thematic performances, staged at the section of the Chang'an Avenue to the south of the Golden Water Bridge, will feature 3,290 people holding light panels and other props to depict China's great leaps -- it has stood up, grown rich and is becoming strong.

Second, the featured shows will use the same performing area as the thematic performances. A total of 3,650 people from art groups of relevant provincial regions will participate in the shows, displaying their unique local cultures. About 40 popular songs will be performed, and a vocal music set has been created specifically for this section. Some 16 songs have been selected and will be performed together by actors and audiences in a chorus. 

Third, the mass celebration will be staged in 10 zones located on the east and west side of the main performing area. The participants will also interact with the performances in the main performing area. 

Fourth, the fireworks show will create a festive atmosphere and a scene filled with happiness.

Fifth, there will be performances on designated stages. For example, in order to echo the thematic performances and featured shows, a special gala, featuring 2,502 people from martial arts schools and from three districts in Beijing, will be staged to create a festive atmosphere. The other performance will be presented by a thousand-strong symphony orchestra and chorus. The orchestra consists of 1,028 people from 16 orchestras nationwide while the chorus consists of 1,400 students from universities, middle-high schools and primary schools in Beijing. This should be the first time in the world history that such a large scale orchestra and a chorus will perform together at a square. 

Sixth, at the beginning of the evening gala, some large-scale facilities will be used during the thematic performances. In certain sections of the performances, large equipment and facilities will be used to create special effects with fireworks. 

Seventh is the presentation of light art. The lighting projects around the square have been organized collaboratively, such as those on the Tiananmen Rostrum, the Great Hall of the People, the National Museum, and the Zhengyangmen Gate Tower. Advanced technologies will be used to improve the overall lighting effects. 

Tian Yuhong:

Thank you, Ms. Pang. Now the floor is open for questions. Please identify your news agency before asking questions.

CCTV:

Mass pageantry always attracts widespread attention in major national celebrations. Based on the earlier introduction, we feel that this year's mass pageantry will be refreshing to the audience. Can you please give us details about what the considerations are in regard to the overall design? Thank you.

Xiao Xiangrong:

The overall design of this year's mass pageantry aims to highlight a combination of its narrative and thematic features. As our 36 formations, 70 sets of floats, and 100,000 people pass through the Tiananmen Square and Chang'an Avenue, a living epic will be unfolded to demonstrate the PRC's 70 years of its great endeavor to rise towards prosperity. There are three features in this year's mass pageantry:

First, this year's mass pageantry consists of people from all walks of life. It will cover a broader swath of society than that of any other previous mass pageantry so that their different lives can be represented and told by the people who truly live them.

Second, there will be more interactions this year than that of any other previous pageantry. 

Third, this year's mass pageantry will feature more diverse ways of people expressing their love for their country. Every single person as well as every formation will have their unique way of celebrating China's 70th birthday.

As for the core design concept, first, we have reinforced the nature of the mass pageantry to highlight the role of the people. As we believe that stories should be told by the ones who truly live it, we have made sure that all 36 formations have their own unique features. Second, we stress the importance of true feelings. Our director team has participated in every formation over 200 times, so that they can communicate directly with the participants and stimulate their true feelings. Third, we adhere to our aesthetic style of simplicity rather than using advanced technology or sophisticated performances. We are focusing on the people, looking to bring out emotions which best fit different people's identity and outlook. 

The people-centered, true feelings-oriented approach and simple style are the common goals of the creative team and the Beijing executive team.

Xiao Xiangrong:

Our opening with many highlights can be deemed as a pure, peaceful, divine, aesthetic and perfect start. We can all wait in anticipation.

We have two super big float formations. One is the reverence formation to show our respect to the revolutionary predecessors of the People's Republic of China; and the other one is formed by 34 gorgeous and resplendent floats representing 34 provinces, municipalities and autonomous regions, in China displaying their distinct achievements.

We also have three scenario formations which represent the turning points in the magnificent historic course of the past 70 years. Over the past year, we have worked and lived with 100,000 ordinary citizens preparing for a grand parade. Thank you. 

Zhang Ge:

All the speakers today participated in the organization and preparation of the activity and we have the same feeling - that all the National Day celebrations are held to express our deep love for our country and Party. Compared with previous celebrations, I think the mass parade this time can express the ordinary people's true feelings of freedom, vitality, happiness and liveliness.

Beijing News:

I want to ask the representative of volunteers a question. What kind of preparation did you made before you took on your current position? What feelings do you have about the role of a volunteer?

Huang Cheng:

Thank you for your question. All the volunteers have made comprehensive and systematic preparations. First, we gathered together to receive general, service skill, emergency and security training and then we had individual on-the-job training sessions tailored to the different positions. We also practiced on-the-spot survey and attended themed activities like watching the flag-raising ceremony and visiting the National Museum of China. What's more, we were so lucky to have been able to take part in all three rehearsals. 

As for my personal feelings, I'm greatly honored to be given the opportunity to witness the glory of our country by being a volunteer in the celebration. Though each of us is undertaking only a small part of the overall work, we will perform our duties assiduously and cautiously and complete them without looking back.

Hong Kong Economic Herald:

Compared with the mass parade during the celebration a decade ago, what's the composition of the overseas people formation this time? Also, what's the idea behind the stage design for the mass pageantry? You must have met difficulties when building stages beside the Great Hall of the People, the Tian'anmen Square and other landmark buildings, how did you overcome them and are there any innovations in this area? 

Zhang Ge:

Thank you for your questions and attention toward the mass parade. As the parade has attracted much attention from society, many fellow countrymen and women in Hong Kong and Macao special administrative regions, in Taiwan, as well as overseas Chinese and foreign friends, expressed their desire to join in the activity through various channels. To meet their demands, we held a recruitment drive through voluntary applications and recommendation by work units and now over 400 people are set to take part in this formation. 

Pang Wei:

As for the stage design, Tianan'men Square is in itself a grand and magnificent stage. The area of Chang'an Avenue in the south of the Golden Water Bridge will be the venue for the themed performance and the central performance. Both sides of Chang'an Avenue will host 10 mass pageantry performances. To the south of the themed performance area, the stage transformed from the reviewing platform in the day will at night become a stage for distinctive mass performances as well as for a symphony and a chorus comprising thousands of people.

Wenhui Daily:

We've noticed that the red ribbon landscape sculpture, which has taken shape in Tian'anmen Square, appears grand and lively. What's its design philosophy? What kind of role will it play in the celebration?

Ma Sai:

Thank you for your question. The sculpture has drawn great attention from all walks of life during its construction. We have taken three elements into account in the designing process of the two red ribbons:

First, it's set up to help create the narrative in the celebrations. It represents the Red heritage that connects the past, present and future as well as the brilliant course of the Chinese revolution under the leadership of our Party, which has scored victory after victory.

Second, it's designed to liven up the atmosphere. Through the convergence of two red ribbons, the center of the square can be made a better stage. In addition, the landscape sculpture with 70 red lanterns on both sides of the square can echo the celebration in a better way.

Third, it's built based on the consideration of the interaction between the military parade, floats and mass parades. We installed six big screens on them so as to present the grand scene of the celebration. Thank you. 

Economic Daily:

We know that over 60,000 Beijing citizens will take part in the mass pageantry on Oct. 1. What are the selection standards for those participants as well as their ages and occupations? Thank you.

Pang Wei:

Thanks for your question. Many people would like to attend the mass pageantry. It's a way to express their sense of achievement, happiness and pride. We selected the participants from all walks of life, professions and ethnic groups in order to showcase the different characteristics of the general public in the new era. They include workers, farmers, teachers, students, doctors, deliverymen, and the handicapped. The so-called Xicheng Dama (middle-aged women in Xicheng district) as well as Chaoyang citizens (passionate volunteers in Chaoyang district) are also included. It covers all age groups, ageing from 6 to 66. Thank you.

Guangming Daily:

We've heard that the concepts of "Lighting up" and "Moving up" with a "Three-dimensional Effect" were used in this year's grand celebrations. Can you give us more information about these concepts? 

Pang Wei:

To be specific, we will improve the lighting of the buildings near Tiananmen Square, and set up stage props to present the show and fireworks in a multi-dimensional way. Moreover, the performances will focus on audience interaction in a bid to liven people up and present a grand and magnificent National Day celebration gala. Thank you.

People's Daily:

According to earlier introductions, public participation is a key feature in this year's celebrations. Can you give us more details?

Pang Wei:

Participants in the celebrations are from various professions, ethnic groups, regions and age groups. There are many touching stories in our behind-the-scenes preparatory work. We will make those stories public after the National Day celebrations. Thank you.

CGTN:

We were deeply impressed by the passionate volunteers at each grand event. Mr. Xiong Zhuo said that the smiling faces of volunteers best display Beijing's image, and he mentioned that a large number of volunteers are participating in this year's event. Mr. Xiong, can you give us more details on the volunteers?

Xiong Zhuo:

Volunteers have contributed to every event in our National Day celebrations. During the mass pageantry and grand gala, the volunteers' main tasks are to help people with directions, give assistance to those in need, and handle emergencies during each event. Besides the mass pageantry and gala, volunteers will also help with the park tours and at the achievements exhibition. They will help maintain order, answer inquiries and give assistance to the elderly and disabled. The largest number of volunteers, nearly 150,000, will mainly help with the city operations. They are either city volunteers, who will serve Beijing citizens and tourists in populated areas such as tourist attractions, transportation hubs, and commercial spaces, or other volunteers who will help people with directions in transportation hubs, subway stations and on buses.

Hong Kong Commercial Broadcasting:

What will the Hong Kong float be like during the parade? I heard that the Hong Kong, Macao and Taiwan floats will appear at the end of the fleets. Can you share some more information with the Hong Kong compatriots about the mass pageantry?

Zhang Ge:

The Hong Kong, Macao and Taiwan floats have always attracted much attention. And this year will be no exception. You'll witness this with your own eyes during the event. Thank you.

CMG Radio the Greater Bay:

Will the 70 floats be open for the public to visit or for photo opportunities after the whole celebration? Thanks.

Zhang Ge:

We do have such plans. The floats will normally go on public display after each year's National Day celebrations. Thanks.

Tian Yuhong:

The last question.

China Tribune:

My first question is, can you tell us more about some of the unique singing and dancing performances in the grand gala. And my second question is, how long did it take to prepare for the grand gala? Thanks.

Pang Wei:

Thanks for your question. We have selected over 40 popular and classic songs to perform during the grand gala. Moreover, as mentioned earlier, we also composed a series of song cycles. The 10 blocks comprise residents from 10 Beijing districts and each has its own themes. Thank you.

Tian Yuhong:

Thank you to all the six speakers. We wish the mass pageantry and grand gala a great success and welcome your coverage of the events. This is the end of today's group interview. Thank you!

.

Speakers:

Major General Cai Zhijun, deputy director of the Leading Group Office of the Military Parade, deputy director general of the Operation Bureau of the Joint Staff Department under the Central Military Commission

Major General Tan Min, executive deputy director of the Military Parade Joint Command Office, deputy chief of staff at the Central Theater Command of the People's Liberation Army

Senior Colonel Wu Qian, director general of the Information Office and spokesperson of the Ministry of National Defense

Chairperson:

Xi Yanchun, head of the Press Center for the Celebration of the 70th Anniversary of the Founding of the People's Republic of China

Date:

Sept. 24, 2019

Xi Yanchun:

Ladies and gentlemen, good afternoon. Welcome to attend this group interview. 

Present here are: Major General Cai Zhijun, deputy director of the Leading Group Office of Military Parade, and deputy director general of the Operation Bureau of the Joint Staff Department under the Central Military Commission (CMC); Major General Tan Min, executive deputy director of the Military Parade Joint Command Office, and deputy chief of staff at the Central Theater Command of the People’s Liberation Army (PLA); and Senior Colonel Wu Qian, director general of the Information Office and Spokesperson of the Ministry of National Defense. They will brief us on the National Day military parade.

Now, I'll give the floor to Major General Cai Zhijun. 

Cai Zhijun:

Ladies and gentlemen, friends from the media, good afternoon. It is my pleasure to give you an introduction to the military parade to be held in celebration of the 70th anniversary of the founding of the People's Republic of China (PRC).

This is the first military parade held on the occasion of the National Day after the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core began to lead the whole Party, the military and Chinese people of all ethnic groups to enter a new era; it also marks the debut for the whole of the PRC's armed forces after its comprehensive restructuring. As a significant component of the celebrations of the 70th anniversary of the founding of the PRC, the military parade aims to reinforce the political belief that the people's armed forces always obey the Party's command, and offers an opportunity to display the great achievements in building a strong armed forces through reform, demonstrate the comprehensive capability of the PLA to carry out its assigned mission and tasks for the new era, as well as showing our confidence to achieve the goal of transforming the people's armed forces into a world-class entity , and reflect our firm resolve to safeguard China's sovereignty, security and development interests, as well as safeguard and promote world peace and regional stability. It will motivate and encourage the Party, the military and the people of all ethnic groups in China to continue to strive for the realization of the Chinese Dream of national rejuvenation. 

The military parade, consisting of two parts - inspection and marchpast - will last around 80 minutes. The military forces to be reviewed will line up in formations and receive inspection from Xi Jinping, general secretary of the CPC Central Committee, president of the PRC and chairman of the Central Military Commission.

Then, the air flag guard formation, foot phalanxes, armament phalanxes and aircraft echelon formations will cross Tian'anmen Square in succession.

There will be 59 distinctive formations and echelons, and a joint military band, comprising a total of 15,000 personnel, more than 160 aircraft of various types and 580 of various types of advanced armament - the most to be seen in recent parades. The foot phalanxes consist of 15 formations: guards of honor, formations drawn from all branches of the services, formations of female soldiers, representatives from the research faculties of various institutions and universities, civilian staff in the armed forces, reserve forces, militia and peacekeeping troops. The armament phalanxes consist of 32 formations in seven modules: ground assault weaponry, offshore assault weaponry, air defense and anti-missile weaponry, information equipment, unmanned combat equipment, logistic equipment and strategic strike weaponry. Aircraft echelons consist of 12 formations: leading aircraft echelon, early warning planes, bombers, carrier-based aircraft, fighters and aircraft from the army aviation unit. The joint military band, with the Military Band of the Chinese People's Liberation Army as the mainstay, is supplemented by more than 1,300 people drawn from other units.  

This year's military parade has several highlights and characteristics as follows:

First, it clearly demonstrates that the people's armed forces are loyal to the CPC. Through the elements of troops inspection, solemn salute, powerful statement and marchpast, it will declare our unswerving adherence to the principle of the CPC's absolute leadership, our firm resolution to follow the commands of the CPC Central Committee, the CMC and Chairman Xi, and our keen awareness to showing our resolute loyalty in support of and safeguarding the leadership core.

Second, the whole event will be staged with grandeur and solemnity. We have designed several rites for such key links in the parade as the beginning of the troop inspection and marchpast, including pacesetters taking their positions, sounding of the bugle, and reporting and saluting, so as to create a very solemn atmosphere for this grand event. The helicopter echelon will form numbers and characters in flight, planes will produce assorted colors of smoke in the air and flags will be displayed both in the air and on the ground. These activities will all demonstrate that, under the strong leadership of the CPC, which is great, glorious and correct, China has achieved remarkable development over the past 70 years since the founding of the PRC, and the modernization of the people's armed forces has made historic accomplishments. The military band will play music and songs that reflect characteristics of the new era and express strong patriotic feelings, so as to create a warm festive atmosphere. The repertoire list includes more than 50 pieces, a greater number than any previous National Day celebration.    

Third, the military parade will take on a new look brought about by the process of military reform. In the light of building a system of a modern military force with Chinese characteristics, the foot formations will feature participation of all major military units, many making a debut. For example, the formation of military officers will include members from the leadership of Central Military Commission (CMC) organs, theater commands, various services and arms, and the Chinese People's Armed Police. This reflects the establishment of new leadership, management and operational command systems. The formation of military academies includes members from the National Defense University of the PLA, National University of Defense Technology and the PLA Academy of Military Sciences, showcasing the important position of the military academies and scientific research institutes in strengthening our armed forces. The formation of civilian personnel includes members from the joint logistic support force, embodying the vital role played by civilian personnel in military development during the reform process. 

Fourth, the latest achievements in China's national defense and military development will be showcased. Some of the new armaments and equipment of the PLA's ground force, navy, air force, rocket force and strategic support force will be inspected to highlight the great development of the national defense science and technology industries over the past 70 years. The proportion of advanced armaments and equipment on display for the first time is relatively high, compared with the military parade at Zhurihe training base in July 2017, and the navy parade in April 2019.

Fifth, the Chinese military's enhanced comprehensive capability to perform its missions will be fully demonstrated. The armament section of the parade will focus on joint formation, joint command, joint operation and joint support, featuring information dominance, systemic support, elite forces and joint operational capabilities. For example, the unmanned combat unit will showcase weaponry used by the PLA's ground force, navy and air force, and quite a number of items are being displayed for the first time. The unit for information combat will present equipment on electronic warfare, information/communications, surveying and navigation, and the meteorological and hydrological services of the strategic support force, seeking to show how the space-based information system is being applied. The formation of the peacekeeping forces will demonstrate China's resolve and capabilities in maintaining world peace and regional stability. 

Sixth, the military parade will highlight the importance of commanders. Most formations will be headed by two commanders of general rank. The number of high-level commanders and generals participating in the parade will reach a record high.

Seventh, the theme of passing on the revolutionary traditions will be fully presented. A formation of military flags will spotlight the PLA's military flags during the Agrarian Revolutionary War, the Chinese People's War of Resistance Against Japanese Aggression, the War of Liberation, as well as those belonging to meritorious PLA units since the People's Republic of China was founded in 1949. It aims to add a sense of history to the military parade, commemorate revolutionary martyrs, remember meritorious PLA units, and carry forward the revolutionary traditions.

Eighth, analog simulation technologies have been effectively used in preparation for the military parade. The analog simulation system has been applied in designing the overall plan of a military parade for the first time, in order to show the formational arrangements, movements and inspection status through a 3-D simulation model. This will greatly improve the formation arrangements and visual effects.

Ninth, the military parade features efficient and intensive logistics support. Under the principle of practicing frugality with a strict budget and based on the existing system of joint logistic support, we have ensured the effectiveness of logistic support for the upcoming parade. We have the most comprehensive logistic support system ever seen. There is only one week to go before the military parade. Under the strong leadership of the CPC Central Committee, the CMC and Chairman Xi, the participating troops are ready to receive inspection by the Party and the nation with great confidence, resolve, capability and high morale, and to stage a grand parade of a modernized and powerful Chinese military. That is all for my introduction. Thank you.

Xi Yanchun:

Thank you, Major General Cai Zhijun. Now the floor is open to questions. Please identify your media outlet before raising questions.

CCTV:

It is believed that, after its reform, the PLA has entered an era of joint development. How will this year’s military parade reflect this characteristic of the PLA? Thank you.

Cai Zhijun:

Thank you for your question. Joint operations are the basic form of warfare in modern times. China's program of strengthening and reforming its military is marching toward the development of an integrated combat force and an improved joint-operational capacity. This year's military parade focuses on the mission of China's armed forces in the new era, that is the "four strategic supports," which are to provide strategic support for consolidating the leadership of the CPC and the socialist system, for safeguarding national sovereignty, unity and territorial integrity, for protecting China's overseas interests, and for promoting world peace and development. The military parade also adheres to the general principle that the Central Military Commission exercises overall leadership, theater commands are responsible for military operations, while the various services focus on developing their respective capabilities. With a meticulously-designed leadership and command system, various phalanxes and echelon formations, the military parade this year will fully demonstrate the capacity of China's armed forces in regard to joint operations, joint training, and joint support.

In terms of its organization and command, the military parade follows the command systems for joint operations established since reform of China's armed forces. A joint command organ of the military parade, primarily consisting of elite forces from the central theater, has been set up to take charge of the planning and organizing work. In regard to the foot formations, its design will display the structure of the military forces in modern times with Chinese characteristics. In addition to the formation of a single armed force, other formations have all been jointly organized. The armament formations will be organized according to the principle of joint operations, modular units and the coordinated capacity of the armed forces. The air echelons will be organized based on the joint operation of the air force. Part of the air echelons will be organized systematically, consisting various operational and support aircraft from different units. This is designed to display the breakthroughs that have been achieved in air force combat and organizing capacity. As for the support services, it will display the strength of the joint logistic support system, in which integrated and effective support work is carried out in collaboration between the joint logistics team as well as other units of the armed forces. Therefore, the characteristic of joint development is reinforced, reflected and realized in every aspect and every process of this year's military parade. Thank you.

Asahi Shimbun:

I would like to ask a question about the armament on display. What cutting-edge weapons will be unveiled during this year's military parade, like the DF-41 missile? Thank you.

Tan Min: 

The armament to be displayed at the 70th anniversary parade has always been a matter of great concern among our media friends. There are two major features that can be highlighted. The first is that all the equipment displayed will be domestically-developed and already be in service. This will include some of the new equipment of China's armed forces, demonstrating the overall  equipment system as applied in joint operations. This will, to a certain extent, reflect China's capacity of self-innovation in its national defense scientific research. The second feature is that the equipment displayed will demonstrate a high level of information technology. Specifically, such equipment has stronger ability in terms of command and control, a higher level of precision, better adaptability in battlefield conditions, as well as improved operational capacity. As for cutting-edge weaponry like the DF-41 missile you mentioned, since there is less than a week to go until Oct. 1, let’s wait and see, and I believe it won't disappoint you. Thank you.

TASS:

Will any troops from foreign countries be invited to participate in this year's military parade? Will foreign countries' defense attachés in China and their military leaders be invited to watch the military parade?

Yu Qian:

Thank you for your question. This year's parade marks the first of its kind after socialism with Chinese characteristics entered a new era. It is also the PLA's first appearance since adoption of the reform plan. A total of 188 defense attachés from 97 countries will be invited to watch the military parade on Oct. 1. No troops from foreign countries have been invited to participate in this year's parade, and no military leaders of foreign countries have been invited to watch it. Thank you. 

Phoenix TV:

I have some questions about the personnel involved in the parade. Just as you have mentioned, the parade will comprise 15,000 participants. In what way and by what standards were these personnel selected? What’s the age distribution like? What are the minimum and maximum ages? Thanks.

Tan Min:

The selection of the participants, involved in the military parade commemorating the 70th Anniversary of the founding of People's Republic of China, followed closely the decisions and instructions made by the CPC Central Committee, the CMC and Chairman Xi. In line with the requirements and deployment of the Parade Leading Team of the CMC, we worked out three principles as follows:

Frist, we adopted strict criteria. The participants selected for the parade should have a firm political stance, and display strong physical and psychological capabilities and qualified military competence. All the military equipment on display is made domestically and is on active duty. 

Second, the formations are grouped systematically. In addition to a mixed formation, each of the remaining teams are formed mostly by participants from the same unit. However, we did not rule out a few selections of the candidates drawn from a wider spectrum based on the actual situation. Such formations are easier to organize, manage and keep in order.

Third, there is a reserve ready for the parade. A certain number of personnel are held in reserve for the foot formations, and additional military equipment and staff also stand ready to back up the armament formations and air echelons.

There are five criteria to choose the personnel. 

First, they are staunch and firm in their political stance. They absolutely follow the instructions of the CPC and their behavior is highly consistent with the CPC Central Committee, the CMC and Chairman Xi in terms of political stance, thoughts and actions. 

Second, they should be lofty in terms of thoughts and ethics, being patriotic, passionate and competent in military tactics and skills. They should be progressive, sublime in their pursuits and calm in coping with any challenging situations. 

Third, they should be highly disciplined. They should abide by the discipline, be totally loyal in their duties, obey orders and instructions and follow the provisions, systematic regulations and rules that have been established. 

Fourth, they should show a high level of military competence and excel in specific skills. They are required to demonstrate dexterous use of weapons and skilled techniques in their operation. Vehicle drivers should have accomplished a non-accident record above 30,000 kilometers and tank drivers should be accredited with at least a level-one professional standard. Pilots should have completed certain training and ensure their flight time meets the requirement.

Fifth, they should be in good physical condition. They should be healthy, flexible and agile. In the foot formations, the heights of male participants range between 1.75 and 1.85 meters and females between 1.63 and 1.75 meters. Those are the general yardsticks, though with a few exceptions.

The ages of the participants in the parade cover a wide range. There are young military soldiers or commanders aged around 20, and senior officers above 60. The parade with such a wide age distribution is supposed to demonstrate the outstanding traditional red culture continues to be inherited from one generation to another. It also shows that a strong country and army is a great endeavor to be pursued in common. Thank you.

China Arab TV:

You have just mentioned that senior commanders participating in this parade has outnumbered any others before. My question is: Why is it designed in such a way? Thank you.

Cai Zhijun:

Thank you for your question. Whether at war or in peacetime, senior commanders are the key to unite, command and lead the military forces. They have been the hard core, to whom our Party has attached great importance, in an effort to educate, train and empower them with important tasks. Since the 18thCPC National Congress, and, in particular, since the Gutian Military Work Conference, the army has been infused with renewed aspiration. Senior commanders have made remarkable progress in both of their military competency and positive image, playing increasingly important roles in reaching the ultimate goals of a strong PLA and in preparation for any possible war.

The large group of senior officers in this military parade will show their strong determination to pursue victories along with their soldiers. They are supposed to develop a positive image that can work on their subordinates. They will absolutely follow the lead of the Party and have the courage to be highly conscious of their responsibilities. Just as Major General Tan said, the 60-year-olds are being trained in order to be reviewed just like those of a much younger age. What deserves to be mentioned is that there will be two female generals leading the female formation to be reviewed with their glamourous charms and valiant spirit. This is also the first time to appoint two female generals in the parade. Thank you.

China Daily:

Mr. Cai just mentioned the military parade this time is of a large scale, and my question is how the centralized training was organized and operated? Thank you.

Tan Min:

A military parade is an important part of state celebrations, and centralized training is a basic preparation made to guarantee the quality and effect of the activity. The training can improve the military competence of both the officers and ordinary soldiers that was cultivated at ordinary times, strengthen their consciousness and discipline in obeying orders and commands, temper the invincible will and courage to form mighty and vehement momentum, demonstrate their firm belief in being loyal to the Party and obeying its orders in the new era, and show the determination and confidence of building a first-class army in the world.

The centralized training of the ground phalanxes was practiced at the Nankou Training Base outside of the Sixth Ring Road in Beijing; and that of the air echelon formation was conducted at several airports in the areas surrounding Beijing. It was implemented in three phases. The first one was basic training conducted in a single formation so as to build a solid basis and realize neatness and uniformity. The second phase was group training involving the organization of 15 foot formations, 32 armament formations, and 12 air echelons to conduct, respectively, overall practices, thus guaranteeing a smooth transition and achieve strong cohesion. The third phase was the rehearsal involving all-element and all-procedure training, and focused on practicing commanding, synergy, following procedures and guaranteeing support, so as to enhance cooperation and coordination of all elements and ensure a solid connection and unhindered collaboration.

PLA Daily:

A battle flag phalanx will be presented during the military parade. What's the intention behind the design?

Cai Zhijun:

Thank you for your question. With an aim to display our armed forces' brilliant history and achievements with one victory after another, the battle flag phalanx selected representatives from all categories of the military force and the armed police force that had won honors and great merit, so as to express reverence to those who record great feats in each period, and spur all the officers and ordinary soldiers to maintain and promote the fine traditions of an unflinching and invincible spirit.

We mainly took several aspects into account. First was to enhance public memory of our Party and armed forces. A battle flag can be deemed as an epic entitlement. The battle flag phalanx will showcase battle flags of the troops that were honored and showed great merits during the periods of the Agrarian Revolution, the Chinese People's War of Resistance against Japanese Aggression, the War of Liberation and the time after the founding of the People's Republic of China so as to let us remember the hard, yet brilliant experience of our Party and armed forces and bear in mind the struggle undergone by our armed forces in developing from small beginnings into a mighty military. Second, we wanted to cherish the memory of the revolutionary martyrs and heroes. Just as a lyric goes: "Why is the battle flag so beautiful? It was painted by the blood of heroes." The phalanx selected battle flags named after renowned martyrs and heroes to express our respect for them. Third, we want to enhance public admiration for medals and titles of honor. Seeking honor and achieving great feats are a fine tradition of the people's forces. Organizing the phalanxes can help all the officers and soldiers inherit those fine traditions, remain true to the Party's original aspirations and keep its mission firmly in mind, focus on building a strong military, and accomplish new feats and achievements in the new era.

CNN:

Someone pointed out that the new type weaponry displayed during the upcoming military parade can expand the strike and surveillance scope of the China's armed forces, making it harder for American aircraft carriers to get closer to China's military sphere. Considering that American warships and military aircraft have kept passing through and over the Taiwan Strait and South China Sea, many American personages in the military and political circles appear to be treating China as the main strategic competitor. What signal does the parade presentation aim to release this time?

Wu Qian:

Thank you for your question. I got your meaning. The question focuses on whether China's presentation of new type weaponry is "flexing its muscles." In the development of China's armed forces, some personages or forces always spark false speculation. They have flawed logic that China's armed forces exhibiting weaponry is "flexing its muscles," but if they do not exhibit it, they would be blamed for lacking transparency. The best way to deal with such logic is to focus on our own missions with steely resolution. Over the past 70 years, the development of the China's armed forces is obvious to all. We had no intention, nor felt the need to flex our muscle through a military parade. Over the past 70 years, the world also witnessed the contributions made by the China's armed forces. The stronger we become, the more contributions we can make to world peace. Under the strong leadership of the Communist Party of China, the China's armed forces will resolutely defend national sovereignty, security and development interests, proactively serve in building a community with a shared future for humanity, and march forward on the road of building a strong military with Chinese characteristics.  

Beijing Media Network: 

The size of the military parade is relatively large, and the participating troops have conducted several joint rehearsals in the Tiananmen area, and even some routine training that have caused some temporary traffic control measures, which may have some impact on the lives of some Beijing citizens. How do you respond to this issue? Thank you.

Tan Min:

During the preparations for the military parade, especially during the time when military vehicles come on station and when rehearsals are being held in the Tiananmen area, our joint command for the military parade has tried to minimize the disturbance to people's lives, reduce the burden on the local government, and make use of nighttime to organize activities as much as possible. The parade training venue was selected so as to be far from the urban area, thus minimizing the impact on nearby residents as much as possible. The Beijing Municipal Committee of the CPC and the municipal government have attached great importance to the military parade-related logistics work. They have provided a lot of help to the participating troops  in terms of their living arrangements, transportation and security. The general public have also shown great understanding and support. For example, on Sept. 14, the second Tiananmen area rehearsal was organized, coinciding with the Mid-Autumn Festival. The rehearsal activities naturally had some impact on people who wanted to go to the Beijing horticultural expo and other tourist attractions in northern Beijing. On the one hand, our parade forces optimized the motor access route, while, on the other hand, the citizens of Beijing showed great understanding, which enabled our rehearsals to proceed safely and smoothly. We would like to take this opportunity to express our deep gratitude to the Beijing Municipal Committee of the CPC, the municipal government and the people of Beijing. Thank you.

The Global Times:

On Sunday during the military parade rehearsal, an air square echelon drill was conducted, and many people shot videos and shared them with friends. Will there be similar rehearsals before the National Day? What's your comment on this air force team drill?

Wu Qian:

Regarding the next rehearsal arrangement, I will not give you any "spoilers" here. Your question reminds me of a story that the press once reported, also about a military parade and planes. At the parade of the ceremony of the founding of the People's Republic of China 70 years ago, the number of our planes was inadequate - only 17 aircraft! Then-Premier Zhou Enlai said, "If we don't have enough planes, then we can fly them twice." How time flies! Here we are, 70 years on, in the new era of China, the country is wealthy and has a strong army. Our planes no longer need to fly for a second time. At this moment, we have enough achievements to comfort the ancestors and martyrs that, "This flourishing era is what you desired."

Cai Zhijun:

I will add some words to my answer. According to the unified plan and arrangements, the participating troops have conducted three joint rehearsals in the Tiananmen area. I can say that the quality of rehearsals gets higher and higher, and the overall results are getting better and better. Everyone is fully prepared for the parade. In other words, all is ready. Let us look forward to the arrival of the solemn and sacred and exciting moment. Thank you.

Macao Daily:

According to reports, the military parade contains peacekeeping troops for the first time. What kind of consideration has made for such an arrangement?

Wu Qian:

Chinese soldiers contribute much to the world. The peacekeeping force in the parade represents tens of thousands of Chinese soldiers who are dedicating their youth and their blood to maintaining peace and security. China is the country dispatching the largest number of peacekeeping soldiers among the permanent members of the U.N. Security Council. In the seven peacekeeping mission areas of the United Nations, more than 2,500 Chinese soldiers are guarding the peace in hostile areas, and there is an 8,000-strong force on standby who will start off once the order is issued. There is no war in China, but we still have to seek sacrifices from our soldiers. So far, many Chinese peacekeepers have died in foreign lands. They would calmly go through a perfect storm and move forward no matter how difficult and dangerous the situation. The Chinese army will, as always, firmly support the U.N.'s peacekeeping cause, writing a fresh chapter with their perseverance and dedication showing how China shoulders the responsibilities of a great country to keep the peace, and take actions and practices to promote the building of a community with a shared future for mankind.

Xinhua News Agency:

How is the logistical support of the military parade provided?

Tan Min:

As a Chinese saying goes, "Food and fodder should go before troops and horses." In our view, logistical support provides the necessary backing for sound training and a high-standard military parade. Considering that military logistics is required to "arrive first, leave last and serve all the way," we made full use of the existing support system, strictly followed the existing regulations, implemented the principles of diligence and thrift, and provided logistic support in accordance with the procedures and standards for major military activities. In a nutshell, there are several characteristics.

First, there has to be a joint mechanism in place. The logistical support of the military parade was drawn from various multiple military organizations. We set up a joint support mechanism led by the Central Theater Command, reinforced by a joint force of logistics support troops, supplemented by logistics personnel in various categories and assisted by the local people. We stress the need to keep the big picture in mind, based on the orders received and seeking strong coordination. We have effectively pooled our forces and resources, and explored and practiced a new model of logistics support featuring unified command, joint actions and civil-military integration, drawing on the strengths of each component of the new mechanism.

Second, scientific planning is considered a vital element. Before the military parade, we have to figure out our existing resources and forces in a systematic manner, made accurate arrangements according to need, categorized logistics tasks into transport, food supplies, services, healthcare and epidemic prevention, formulated detailed plans in advance, and make timely, scientific and reasonable adjustments and improvements based on specific tasks.

Third, accurate implementation is crucial. On the basis of a sound overall planning, we adopt flexible and accurate modes to offer support, such as fixed-point, front-line, accompanying and emergency support. For example, we have opened a comprehensive service assurance center at the collective residence, offering services like the ordering of staple and non-staple food, the washing and repair of clothing and shoes, medical care, supermarket shopping and banking and postal services. Officers and soldiers can enjoy "one-stop" services without having to leave the training ground. For another example, we arranged medical staff from the Chinese PLA General Hospital to offer round-the-clock accompanying support at various training locations, and also organized medical experts to conduct regular visits so that officers and soldiers could receive medical treatment whenever and wherever they feel unwell. On food supplies, we conducted three strict inspection and quarantine checks every day to offer considerate care to officers and soldiers receiving review.

I would like to take this opportunity to highlight that, during the collective training for the military parade, the city always offers substantial support. It has set up a service assurance command, facilitated food, water and natural gas supplies, offered help in fire control, facility renovation and traffic management, showing a glorious tradition of coordination and a close bonding between soldiers and civilians. Here, on behalf of the service assurance command, all the officers and soldiers receiving review, as well as the logistic support personnel, I would like to extend our deep gratitude to and salute the Beijing Municipal Party Committee, the Beijing municipal government and the people of the city once again. Thank you.

Xi Yanchun:

Thanks again to the three spokespersons, whose introductions make us look forward to the National Day military parade even more. This is the end of today's group interview. Thank you all.

.

Speakers:

Ning Jizhe, deputy head of the National Development and Reform Commission, director of the National Bureau of Statistics

Liu Kun, minister of the Ministry of Finance

Yi Gang, governor of the People's Bank of China

Chairperson:

Xi Yanchun, head of the Press Center for the Celebration of the 70th Anniversary of the Founding of the People's Republic of China

Date:

Sept. 24, 2019

Xi Yanchun, head of the Press Center for the Celebration of the 70th Anniversary of the Founding of the People's Republic of China:

Ladies and gentlemen, friends from the media, good morning. As the 70th anniversary of the founding of New China is approaching, we will hold a series of press conferences at this press center to review the historic achievements China has made and the historic changes that have taken place in this country in the past 70 years.

Today's conference is the first one of this series.We will brief you on China's remarkable achievements in its economic development. We are delighted to invite Mr. Ning Jizhe, deputy head of the National Development and Reform Commission and director of the National Bureau of Statistics, Mr. Liu Kun, minister of the Ministry of Finance, and Mr. Yi Gang, governor of the People's Bank of China, to give an introduction on the steady, healthy and sustainable development of China's economy under the guidance of the new development philosophy.

Now, I'll give the floor to Mr. Ning Jizhe.

Ning Jizhe, deputy head of the National Development and Reform Commission, director of the National Bureau of Statistics:

Ladies and gentlemen, friends from the media, good morning. As the 70th anniversary of the founding of New China is drawing near, I'd like to take this opportunity to introduce China's economic and social developments in the past 70 years.

Over the past seven decades, the Communist Party of China (CPC) has united and led the Chinese people of all ethnic groups to forge ahead and work tenaciously, promoting the economic progress of the country by leaps and bounds. In particular, after the 18th National Congress of the CPC, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the various undertakings of the CPC and the country have achieved historic success and undergone historic transformation, marking a new era in socialism with Chinese characteristics.

The brilliant achievements we have made in the past 70 years can be divided into five aspects as follow.

First, the Chinese nation has made a tremendous transformation. It has risen up and grown prosperous, and is now becoming strong. Seven decades ago, Chairman Mao Zedong declared the founding of New China on the Tiananmen Rostrum, marking the rise of the Chinese people. Since then, we have completed the socialist revolution, promoted the development of socialism, and launched the great new revolution of reform and opening up, substantially unleashing and increasing productivity. From 1952 to 2018, the national GDP grew from 67.91 billion yuan to 90.03 trillion yuan, registering an increase of 174 times. Meanwhile, the per-capita GDP grew 70 times from 119 yuan to 64,600 yuan. In today's new environment, we will continue to aim for success in our continued efforts to build a socialist country with Chinese characteristics, and secure a decisive victory in establishing a moderately prosperous society in all respects, thereby moving ahead in our all-out efforts to build a great modern socialist country.

Second, China's overall national strength, productive forces and people's living standards have increased substantially. Presently, China is the world's second largest economy, largest trader in goods, largest forex reserve holder, second largest trader in services, second largest foreign investment recipient, and second largest country in utilizing foreign investment. We have achieved major scientific advances in mobile telecommunications, modern nuclear power, manned spaceflight, quantum science, deep-water exploration, super computing, among other areas. In 2018, the per capita disposable income of Chinese residents was 59.2 times higher than 1949, and the per capital consumption expenditure was 28.5 times higher than 1956 in real terms.

Third, coordinated development has been made in economic, social and ecological fields. Over the past 70 years, the investment on fixed assets has been growing rapidly, giving a boost to the development of agricultural productivity, equipment manufacturing and the infrastructure network. By the end of 2018, the length of in-service railways reached 132,000 kilometers, including 30,000 kilometers of high-speed rail lines, ranking the second and the first in the world respectively. The total length of expressways now stands at 4.85 million kilometers, including 143,000 kilometers of highways, both ranking the first in the world. Progress has also been made in fields of education, culture, healthcare, sports, social security, poverty alleviation and ecological conservation. In the past 70 years, the average life expectancy of Chinese people increased from 35 years to 77 years. From 1976 to 2018, the forest coverage increased from 12.7% to 22.96%.

Fourth, industrialization, information technology application, urbanization and agricultural modernization have seen synchronized development. Over the past seven decades, China has made remarkable achievements in transforming from a traditional agricultural country to a modern industrial country. Today, the country boasts all industries based on the United Nations classification. From 1952 to 2018, the proportion of added value of the primary, secondary, tertiary industries has changed from 50.5 : 20.8 : 28.7 to 7.2 : 40.7 : 52.2. The application of information technologies has also been further promoted. It has become an everyday act for Chinese people to shop online, pay with their mobile phones, use shared bikes and take bullet trains, which are praised as the new "four great inventions." From 1949 to 2018, the proportion of permanent urban residents to the country's total population has increased from 10.6% to 59.6%, and the total power of agricultural equipment has grown from around 100,000 kw to 1 billion kw.

Fifth, China has played an increasingly prominent role in promoting world peace and development, and in upholding the international order. Presently, China has the largest presence of peacekeeping forces compared to the other four permanent members of the United Nations. Its economic growth has made the largest contribution to the world economic development. The country has upheld the principles of multilateralism and free trade, and taken an active part in various events organized by the United Nations and other international organizations. The Belt and Road Initiative proposed by China has received positive responses from more than 160 countries.

The development and achievements in the past 70 years have laid a solid foundation for the country's future progress. Our hard work has given us rich experiences and our explorations have opened a correct path for development. At this new starting point, we will rally around the CPC Central Committee with Comrade Xi Jinping at its core, follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and sustain healthy economic development and maintain social stability, so as to secure a decisive victory in establishing a moderately prosperous society in all respects, and embark on a new journey to fully build a modern socialist China. Thank you.

Chairperson:

Thank you, Mr. Ning. Now let's welcome Mr. Liu who will give us an introduction.

Liu Kun:

Ladies and gentlemen, media friends, good morning. First of all, on behalf of the Ministry of Finance, I would like to express our heartfelt thanks to all our media friends for your continuous concern and support towards China's financial undertakings. The 70 years since the PRC's founding is a time marked by growing national strength, substantial economic progress, and the continuous improvement in people's living standards. This is also a time when profound changes took place in the country's financial landscape. In particular, since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core guided our direction and made strategic plans, making historic achievements in our nation and bringing historic changes to the cause of the Party and the country. National finance played an active role along this path of development.

First, China's financial strength grew continuously. Over the past 70 years, China's fiscal revenue increased from 6.2 billion yuan in 1950 to 18.34 trillion yuan in 2018. This marked an average annual growth rate of 12.5% and an increase of nearly 3,000 times. That is to say, the daily fiscal revenue today is almost eight times of that of the whole year of 1950. The continuous expansion of the fiscal "pie" provided a solid financial guarantee for China's economic and social development over various periods.

Second, the public finance system gradually improved. Over the past 70 years, China made a historic leap from production and construction-oriented finance to public finance. The fiscal system also transitioned from unified revenue collecting and spending to dividing revenue and expenditure between the central and local governments. These changes show that China's fiscal system has an increasingly prominent public nature and fairness.

Since the 18th CPC National Congress, we made further adjustments to balance the allocation of financial resources. We promoted equal access to basic public services in line with the needs of the central and local governments at all levels, and allow people to enjoy the fruits of reform and development. In 2018, revenue in the central government's general public budget accounted for 46.6% of the national revenue, but the expenditures in the central government's general public budget accounted for only 14.8% of the national expenditure. That is to say, more than two-thirds of the revenue in the central government's general public budget was handed over to local governments. In 2019, the central government allocated 7.54 trillion yuan in transfer payments to local governments from its general public budget, including 6.78 trillion yuan in general transfer payments and 763.59 billion yuan in special transfer payments. The transfer payments were mainly used to promote coordinated development among regions and support the provision of public services and undertakings related to the people's wellbeing.

Third, fiscal policies have played an increasingly stronger role. Over the past 70 years, we have given full play to the role of fiscal policies in regulating economic operations, and established and improved on a system of regulation through fiscal policies, which meets the needs of different economic operations in a socialist market economy. Since the 18th CPC National Congress, we have stayed committed to the general principle of pursuing progress while ensuring stability, adhered to the new development philosophy, and earnestly implemented proactive fiscal policies. These moves have played an important part in promoting the steady and sustainable development of the Chinese economy. In 2019, we implemented more proactive fiscal policies and expanded government spending appropriately. The government deficit nationwide is now 380 billion yuan larger than that of 2018, and the value of special bonds issued by local governments are 800 billion yuan higher than that of 2018. On top of the 1.3-trillion-yuan tax cuts in 2018, we continued reducing the tax burden on companies by 2 trillion yuan. Meanwhile, we strengthened policy coordination, maintained spending in some areas while making cuts in others. We have also made more forward-looking, targeted and effective regulations, and kept the economy operating within a proper range.

Fourth, the reform of the fiscal and tax systems has continued to deepen. Over the past 70 years, fiscal reform always played a fundamental and supportive role as a "breakthrough" and "forerunner" in promoting economic restructuring. In 1950, China carried out unified national fiscal and economic policies as well as unified revenue collecting and spending. In 1980, China instituted the system of "eating from different pots," dividing revenue and expenditure between the central and local governments. The country implemented the fiscal self-responsible mechanism for governments at different levels in 1985 and reformed the fiscal contracting system in 1988. It carried out the tax distribution system reform in 1994, and continued pushing forward reforms in later years to improve the fiscal system, tax system and government budget system.

Since the 18th CPC National Congress, we have continuously deepened the reform of the fiscal and tax systems to modernize China's governance system and capacity. First, we introduced a reform plan on the sharing of fiscal duties and spending responsibilities between central and local governments in basic public services, as well as six reform plans on diplomacy, medical care and transportation. This was done in accordance with the requirements of "accelerating the establishment of a modern fiscal system and a fiscal relationship between central and local governments featuring clear responsibilities, coordinated allocation of fiscal resources and balanced regional allocation." We further made clear the division of the revenue between the central and local governments, and reformed and improved the system of transfer payments from the central government to local governments. Second, we improved the government budget system composed of the "Four Budgets," implemented medium-term fiscal planning and management, and established a cross-year budget balance mechanism. This was done in accordance with the requirements of "establishing a comprehensive, standardized, transparent, scientific and effective budget system and implementing all-round performance-based management." We also strengthened debt management and risk prevention and control of local governments, and practically established a "closed-loop" management system covering all aspects of debt management. We strengthened the management of budget preparation and implementation, and made budgets more transparent. We also implemented all-round performance-based budget management, and established the system covering all aspects of budget management. Third, we deepened the reform of value-added tax, established a personal income tax system that is based on both adjusted gross income and specific types of incomes, improved the consumption tax system, conducted  the reform to apply ad valorem rates to mineral resource tax and introduced environmental protection tax. We also introduced a reform plan for improving the local tax system, and actively promoted relevant tax legislation. This was done in accordance with the requirements of "deepening the tax system reform and improving the local tax system." Meanwhile, we vigorously supported and advanced reforms in state-owned assets and enterprises, finance, science and technology, agriculture and other areas. We also offered public services in innovative ways, steadily improved fiscal governance, and made positive progress in building a modern fiscal system.

Finance is the foundation and an important pillar of national governance. We will uphold the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, resolutely implement the decisions and plans of the CPC Central Committee and the State Council, work hard and overcome difficulties, push forward fiscal reform and development. In so doing, more fruits of reform and development can reach all Chinese people in a more equitable way. Thank you.

Chairperson:

Thank you, Mr. Liu Kun. Now I'll give the floor to Mr. Yi Gang.

Yi Gang (Governor of the People's Bank of China):

Hello, friends from the press. One week from now, we will be celebrating the 70^th founding anniversary of the People's Republic of China (PRC) all over the country. Over the past 70 years, China has seen thriving development and its goal of building a moderately prosperous society is soon within reach. Over the same period of time, the financial industry has also flourished and made historic achievements, thanks to the country's reform and opening up policy and the call for high-quality development since the 18^th National Congress of the Communist Party of China (CPC).

Yi Gang:

First, a modern financial market system compatible with our system of socialism with Chinese characteristics has basically taken shape. After the founding of the PRC, China quickly started building from scratch a stable and credible legal tender system. In the forty years of China's reform and opening up, the financial sector has witnessed great development and prosperity. A financial market system that covers banking, securities, insurance, funds and futures has been gradually established, allowing all kinds of financial institutions to fully compete. Now, China has over 4,500 banking and financial institutions, over 130 securities companies and 230 insurers. Their total assets have reached 300 trillion yuan, of which 268 trillion are banking assets, the largest size in the world. In addition, China's bond, stock and insurance markets all rank No. 2 worldwide. The country has also had the world's largest holding of forex reserves for many years. The holding now stands at $3.1 trillion.

Second, a financial service system that serves the real economy and emphasizes easy accessibility has been basically set up. Over the past 70 years, China has kept on rolling out various financial services and led the world in terms of the access and financial inclusion of such basic services as deposits, loans, payments, settlements, wealth management, investments, and information inquiries. In the financial market, we have basically formed sound systems for registration, custody, settlement, credit investigation and rating, and our financial infrastructure has continually improved. Since the 18^th CPC National Congress, we have been carrying out supply-side structural reform to improve financing services for private, micro and small businesses. At the end of August 2019, the financial inclusion loans to micro and small businesses rose 23% year on year to 11 trillion yuan; the loan balance of private businesses expanded 6.7% year on year to 45 trillion yuan; the overall financing cost of enterprises fell by over one percentage point from the average level in 2018.

Third, a financial oversight system that can effectively safeguard financial stability has been basically established. We have always stuck to a reform approach to diffuse financial risks and improve the health of the financial system. After the 1998 Asian financial crisis, we made up our mind to reform and regroup China's large commercial banks in a market-oriented manner. We have successfully coped with the risks facing rural credit cooperatives and promoted standards for all kinds of financial business forms. Currently, the banking sector's non-performing loan ratio is 1.99%, the capital adequacy ratio is 14% and the provision coverage ratio is 180%. We have continually improved the financial legal system, risk disposal system and the financial oversight system to make our oversight more professional and effective. The rule of law has been constantly strengthened in the financial sector. Currently, the financial oversight framework operates this way: the State Council Committee for Financial Stability and Development sits at the top, complemented by the People's Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange and local financial oversight authorities with a clear division of work. Since the 18^th CPC National Congress, especially since 2018, China has seen positive results in its endeavors to prevent and diffuse financial risks. We have addressed financial risks in key areas in compliance with laws and regulations and as a result, the overall financial risks have eased and are under control, leading to positive changes in market expectations.

Fourth, an effective system of financial regulation has been basically introduced. Through all the stages of development of the PRC, financial regulation has always been there to keep the value of the renminbi stable and safeguard the wallets of the people as best as it can. Since China started the reform and opening up drive, it has kept on improving its monetary regulation framework to better develop the socialist market economy and its main focus is to push for a change from direct regulation to indirect regulation as the primary means of regulation. We have innovated and optimized our monetary policy tools, including open market operations, reserve requirement ratios, reloans and rediscounts, and carried on with market-oriented interest rate reform. Monetary policies and macro-prudential policies are our two pillars and we also place emphasis on counter-cyclical regulation.

Fifth, an open system that is global and that ensures equal competition has been basically established. Restrictions on banking, securities and insurance market access have been significantly loosened and next year foreign ownership limits will be fully scrapped. Foreign banks have so far set up 989 institutions in China and the number of foreign-funded securities companies and insurers in China are 13 and 57 respectively. The exchange rate of the renminbi is determined by market supply and demand. Since 1994, the renminbi has appreciated markedly both in nominal and real terms. Under the capital account, convertible and partially convertible items accounted for over 90%. In 2016, the renminbi was formally included in the IMF's Special Drawing Rights Basket, significantly strengthening its use in denomination, settlement, and transaction as well as its role as a reserve currency. In recent years, China has actively engaged in international exchanges and cooperation as a responsible country and helped enhance the voice and representation of developing countries in international economic and financial governance.

Yi Gang:

Looking ahead, we firmly believe that under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, new and brilliant achievements will be made in the reform, development and stability of the financial sector.Thank you.

Chairperson:

Thank you. Mr. Yi Gang. Now the floor is open to questions.

Phoenix Satellite TV:

My question is for Mr. Yi Gang. We have noticed that the European Central Bank has recently restarted QE (quantitative easing), and the Federal Reserve has also started its second interest rate cut in the year. The monetary policy of major global economies all tends to be moderately easy. Given the current domestic economic situation, is it necessary for China to follow up with an interest rate cut? And will the monetary policy direction be adjusted? Thank you.

Yi Gang:

Thank you for your questions. As you said, the central banks of the United States, Europe and Japan, as well as those of many developing countries, have recently adjusted their monetary policy direction by either restarting QE or cutting interest rates. In this context, what is China's monetary policy direction? As we all know, China is a large economy. Our monetary policy mainly serves the domestic economy, so we adjust our monetary policy based on our actual conditions, taking into account the domestic economic situation and price trends for anticipatory adjustments and fine-tuning. Presently, China's economy is still within a reasonable range, and prices are also within a relatively moderate range. In the process of transformation and upgrading, we have encountered some structural problems, which are mainly being solved through supply-side structural reform.

Yi Gang:

After a comprehensive analysis of China's domestic situation and international background, we believe that China's monetary policy should remain firm and keep a stable course. On the one hand, we should stabilize the current situation, that is to say, we should strengthen counter-cyclical adjustments, and keep the growth rate of our M2 money supply and aggregate financing to basically match that of our nominal GDP. We stand firm in not adopting strong stimulus policies. On the other hand, we should also pay attention to maintaining the stability of our leverage ratio, so that the debt level of the whole society is at a sustainable level. At the same time, we should also make long-term plans, that is to say, we should strengthen structural adjustment, work hard to improve the transmission mechanism of monetary policy, reduce the financing cost of enterprises by means of reform, and promote high-quality economic development.

Yi Gang:

If you want to know the global monetary policy direction, including that of the developed countries and regions like the United States, Europe and Japan and that of the developing countries in the coming years, I have an assessment. Over the next few years, if any country, especially any major economy, can still maintain a normal monetary policy, such an economy should be the highlight of the global economy, and it also should be an admired place in the global market. Thank you.

CCTV:

How should we understand the significance of developing a powerful domestic market for China's economy at a time when the world economic recovery is weak and external uncertainties are on the rise? What are the government's major policies and measures in this regard? Thank you.

Ning Jizhe:

Just as you've mentioned, developing a powerful domestic market is very significant and important. First, it will help maintain sustained and healthy economic development and better ensure and improve the people's livelihood. Second, it is conducive to promoting a dynamic balance between supply and demand, and advancing high-quality industrial development. Third, it is helpful for hedging the risks brought about by the slowdown of world economic growth, and promoting the steady development of the world economy. Therefore, we must adopt active and efficient measures and step up efforts to ensure "six stabilities" so as to stabilize investment, promote consumption, expand employment, increase income, and createa virtuous cycle of the national economic growth.For this end, we need to focus on the following four aspects.

Ning Jizhe:

First, we should work to expand effective investment, which is one of the important measures to promote the "six stabilities" and maintain stable economic growth. We will increase investment under the government budget, other forms of government investment, enterprise and private investment, and special local government bonds to be used to shore up weak areas, adjust structure and expand domestic demand. We will allocate part of next year's special bonds quota in advance, and inject them mainly into projects concerning transportation, energy, ecological and environmental protection, services for citizens, logistics, municipal services, and infrastructure in industrial parks, so that results can be seen as early as possible. We will reduce the minimum capital ratio of infrastructure projects appropriately to better support effective investment. We will take multiple measures to stimulate private investment and raise the ratio of private investment in total investment to more than 60%. We will speed up the pace and progress of project construction, and focus on building up the number of projects in reserve, so that projects can be launched, constructed and added to the pool one after another, just like "three wheels" working together to help expand effective investment.

Ning Jizhe:

Second, we should endeavor to improve the quality and scale of consumption. This is an effective measure to boost the economy and improve people's livelihood. We will promote the upgrading of consumption, and promote the replacement of the old vehicles, home appliances and consumer electronics with new ones. We will lift the restrictions on automobile consumption. Cities like Guangzhou and Shenzhen have relaxed or lifted purchase restrictions. Cities like Xi'an, Kunming and Guiyang are also considering a similar removal. More regions will follow suit as is appropriate in the future. We will encourage green consumption, and support residents in buying energy-efficient home appliances. We will support the consumption of services by introducing and implementing policies and measures for elderly care, household services and infants and children care services, so as to further stimulate the potential of the consumption of services.

Ning Jizhe:

Third, we should endeavor to bridge the development gap between urban and rural areas. This is an important measure to resolve the problem of imbalanced and inadequate development, and unleash the market's potential. We need to tap into the potential of the "four major regions"[through four development strategies], including the development of the western region, revitalization of the northeast, the rise of the central region as well as supporting the eastern region in spearheading development. We will give full play to the role of the five new strategic growth poles, advancing the coordinated and integrated development of the Beijing-Tianjin-Hebei region, the development of the Yangtze River Economic Belt, the construction of the Guangdong-Hong Kong-Macao Great Bay Area, and the regional integration of the Yangtze River Delta. We will implement the strategy of promoting ecological protection and high-quality development of the Yellow River basin. Projects will be constructed in line with strategic planning to further release the huge market potential. We will also promote the renovation and construction of urban areas, such as the renovation of old residential communities, building of parking lots, and other facilities which the public are very concerned about. We will advance the improvement of the living environment in rural areas, and strengthen the areas with weaker infrastructure and public services there.

Ning Jizhe:

Fourth, we will endeavor to promote industrial upgrading, which is a positive measure to adjust the economic structure and boost development. We will improve new types of infrastructure, such as 5G and Artificial Intelligence (AI), and advance the development of strategic emerging industrial clusters. We will strengthen technological transformation in the key areas of the traditional manufacturing industries, including the application of information technology and the Internet, digital transition and intelligent upgrading, the utilization of energy conservation and environmental protection technology, as well as the development of circular economy. We will actively promote the integrated development of the manufacturing and production-oriented service industry. Thank you.

Nihon Keizai Shimbun:

I have two questions. The first one is about tax. Over the past 70 years, China's tax revenue has registered a significant growth. In recent years, large-scale cuts were made to taxes and fees. Up to now, how is the implementation of policies regarding tax and fee reductions? Do you have any plans to impose broader cuts on taxes and fees? My second question is about currency. Over the past seven decades, the issuing volume of the RMB has significantly increased and the internationalization of the RMB has greatly improved. In recent years, the People's Bank of China (PBOC) has been doing research on digital currency and the world is expecting China's central bank digital currency (CBDC) to be unveiled very soon. So, do you have any detailed plan for issuing digital currency at present?

Liu Kun:

Thank you for your question on tax and fee reductions, which is our top priority to implement a proactive fiscal policy this year. In 2019, China provided tax and fee cuts on an unprecedentedly massive scale in the history of the world. We have made progress in our work in five aspects and four stages. General-benefit tax cuts for small and micro businesses were implemented on Jan. 1; and at the same time, special additional deductions from taxable personal incomes came into effect. The reform of China's value-added tax (VAT) started from April 1. We also reduced businesses' contributions to social insurance schemes from May 1, and reviewed and standardized government administrative fees and government-managed funds from July 1. It is without doubt that the reduction policies are so comprehensive that almost all taxpayers will benefit from the tax and fee cuts this year.

Judging from the results, the implementation of the reduction policies has met the projected targets, with tax reduction even surpassing the target. According to the Report on the Work of the Government, in 2019, China aims to reduce the tax burdens on and social insurance contributions of enterprises by nearly 2 trillion yuan. In the first seven months of this year, China's tax and fee cuts reached 1.35 trillion yuan. Taxes were reduced by 1.17 trillion yuan. In terms of industries, manufacturing enterprises received the lion's share and saw a reduction of 364.8 billion yuan in duties levied, which made up 31% of the total tax reduction. In terms of types of business, the private sector benefitted most from the reduction policies, saving 745 billion yuan, or 63% of the tax relief. As for the effectiveness of the tax cuts, it is the market entities and taxpayers who know the best. The policy package of the comprehensive cutting of taxes and fees implemented this year has been well received as the most direct, effective and fair incentive to enterprises.

According to a survey conducted by the National Bureau of Statistics on 311 enterprises from nine provinces and municipalities including Beijing, over 70% of the funds released by the tax cut went into research and development, technical renovation, and expanding reproduction and reinvestment. This has motivated enterprises to increase their investment into R&D. Meanwhile, cutting taxes and fees has stimulated market vitality, enhanced market confidence, and boosted the economic growth momentum. Between January-August, 19,000 new companies were registered every day on average, the investment in high-tech industries picked up and is now growing 13% year-on-year, 1.6 percentage points higher than that of the first seven months, or 1.1 percentage points higher than that in the same period a year before. The growth rate is also 7.5 percentage points higher than that of total investment. The main indicators in the first eight months showed that the Chinese economy had stayed within a reasonable range and achieved generally stable growth while making further progress. The tax and fee cuts have played an important role in this. All these achievements have proven that the major policies of tax and fee reductions made by the CPC Central Committee and the State Council follow the current trends and the will of the people, benefitting both enterprises and individuals.

Right now, you asked if we would expand the scale of tax and fee reductions. The implementation of the reduction policies is a process of dynamic adjustments and self-improvement.We will evaluate the results of these policies and make adjustments accordingly to create greater benefits. Thank you.

Yi Gang:

As for digital currency, I have something to share with you. First, the PBOC began studying digital currency in 2014. We have a digital currency research institute and a special research team, and have made positive progress in the relevant studies. We have combined the CBDC with electronic payment instruments, and developed a digital currency and electronic payment package plan.

Second, what is the future goal of developing digital currency and electronic payment? We hope the CBDC will replace part of M0, or the cash in circulation, rather than M1 or M2.

Third, the CBDC will have a double-tier framework composed of the central bank and commercial institutions, so as not to change the existing currency supply routes and system. This will stimulate the enthusiasm of the market.

Fourth, we will stick to a central management in the research and development of digital currency and electronic payment, which currently doesn't have a pre-determined route.We will select the best technology in the market through fair competition, involving not only blockchain but also new technologies that evolve from the existing electronic payments, so as to inspire proactiveness and the creativity of the market. We have also developed mechanisms compatible with the incentive mechanisms of market institutions. As for when we are launching, there is no timetable, as there have to be a series of moves from studies to tests, evaluations to risk prevention measures. Especially, if a digital currency is to be used across borders, it must also meet regulatory requirements designed to combat violations including money laundering, terrorist financing and tax evasion, "know your customers" and a series of supervisory requirements. Thank you.

Bloomberg:

I have two questions for Mr. Ning Jizhe .First, you mentioned you'd bring forward the announcement of a government bond with a special quota, but even with the increased quota in 2019, the infrastructure spending is still very low. Will the government do anything else to increase infrastructure spending? And also a lot of infrastructure spending from special bonds have been spent on things like land purchasing, which doesn't actually have a large economic multiplier. Do you think the current spending model is efficient? Will you change that so that there's real spending on infrastructure?

And the second question is, you also spoke about increasing consumption to power the economy, but consumption growth isn't as fast as it needs to be to replace the slowing growth in investment. What more do you need to do to encourage consumption to pick up to replace investment as the economy transitions to a consumption model? Thank you.

Ning Jizhe:

As I answered in another reporter's question, I mentioned that investment and consumption must further play an effective role to facilitate the formation of a strong domestic market. We should see that under the influence of a series of policies to promote the formation of a strong domestic market this year, the growth rate of investment has increased compared with the same period last year. In terms of infrastructure investment that you are concerned about, the growth rate from January to August this year picked up compared to the period from January to July. Now we are still taking a series of measures to expand effective investment to accelerate the construction of urban and rural infrastructure. The key is to invest all aspects of funds into appropriate projects and to create a physical workload, and we are now accelerating the pace of our efforts to achieve this.

With regards to consumption, it is both an approach and a goal in economic growth. To improve and guarantee people's livelihoods, it is necessary to promote consumption, as consumption is the number one driving force in economic growth. According to the analysis on the sources of economic growth in the first half of this year, three major demands have jointly stimulated economic growth. In terms of investment demand, consumption demand and external demand, consumption is the biggest driving force. To help the Chinese economy maintain itself within a reasonable range in the first half of this year, consumption can take about 60% of the credit through what it did to prop up the economy. This is 40 percentage points higher than that achieved by investment. So consumption is crucial. To promote overall consumption, we also need to increase the income of residents. This is in addition to what I have just mentioned on focusing to promote the upgrading and expansion of residents' consumption. We have seen that in the first half of this year, the income of residents and overall economic growth have remained basically in sync. The income of residents has actually increased by 6.5%, and GDP has actually increased by 6.3%. In fact, the growth rate of residents' consumption is still faster than the economic growth rate. At the same time, we need to promote rational consumption, create consumption hotspots, while improving the environment for residents' consumption,and we should also adopt policies and measures to encourage and promote residents' consumption, thank you.

The Economic Daily:

We have noticed that both the central and local fiscal revenue growth has been decreasing this year, but the increase in fiscal expenditure has remained at a medium-high level. In the face of increasing income and expenditure pressures, what measures and actions will the financial sector take? Thank you.

Liu Kun:

This year, we implemented a larger scale of tax and fee reductions, reduced the burden on entities, maintained a high level of fiscal expenditure, supported the implementation of the country's major strategies, key reforms, and important policy measures. The pressure on fiscal balance is indeed relatively large. Judging from the budget revenue and expenditure this year, our expenditure has been relatively high, but there have been some new developments in the aspect of income. From the overall monitoring data, the central revenue budget's target increase is 5.1%. Now it stands at 3.5% in the current situation. In the next few months, there will be some income coming in, so our central budget can accomplish the goals set out in this year's budget report.

From the local perspective, the local budget is submitted by the local governments at all levels to the people's congress at their same level for approval. Some places may achieve lower outcomes than the budget targets approved. From the first half of the year, we have required all local governments to properly adjust the budget according to their actual situations. From a national perspective, this year's budget targets can be basically achieved, and are basically consistent with our expectations. You just asked what measures have been taken. We have taken four measures. After hard work, the budget expenditures in the first three quarters are in good condition, and the income and expenditure are basically balanced. The four measures are:

First, vigorously reduce general expenditure and effectively protect the expenditures of the "three guarantees" and key areas. In 2019, the central government took the lead in strict expenditure management. Except for fixed and key projects, the average reduction scale in the expenditures of other projects reached 10%. The local government has also increased the intensity of their reduction in general expenditure. According to the requirements, they will strive to reach more than 10% in reduction. What will the saved funds be used for? They will be mainly used to guarantee wages, guarantee daily operations, and guarantee peoples' basic livelihood.

Second, the central financial policy will enhance transfer payments and increase the level of guarantees for grassroots funds. In 2019, the central government's transfer payment budget for local governments exceeded 7.5 billion yuan, an increase of 9%. So if you compare the 9% with the revenue growth data, you would know that our transfer payments are very large. At the same time, we have strengthened the progress of budget releases. This year, transfer payments have been all issued for equalizing access to basic public services, helping old revolutionary bases, ethnic minority areas, border regions, and poorer areas, with the focus to aid regions with financial difficulties and areas affected greatly by tax cuts and administrative fee reductions. We would replenish local financial resources in a timely manner, alleviate the contradictions between revenue and expenditure, and enhance the financial support capabilities for the grassroots areas.

Third, we have also strengthened the seriousness of the budget. Except for emergency expenditures, such as disaster relief, no new expenditure policies would be issued. The policies that must be introduced will be resolved through future budgetary arrangements to prevent imbalances between revenues and expenditures. It is strictly forbidden for all departments to spend extravagantly and spend a lot of money, and the surplus funds will be returned in time and then be used in areas thaturgently needed financial support.

Fourth, we have arranged for local governments to add new debt ceiling and accelerated the issuing and use of local government bonds. From January to August, we added new local government bonds of 2895.1 billion yuan. The issuance progress has increased by 34 percentage points over the previous year. The bonds are expected to all be issued by the end of September. These funds will be fully distributed to actual projects by the end of October, creating a physical workload as soon as possible. For now, the use of bond funds has been smooth and good.

A reporter just asked about the relationship between local government bonds and investments. Local government bonds are divided into two parts, general bond and special bond. This year's budget arrangement for the local government special bond has increased by 800 billion yuan compared with last year. According to the budget law, local government bond has its applications limitations. First, the project it invests in must generate income. Second, it should be a construction-related investment. Eventually, it should become the capital expenditure with public welfare. So it can't apply to all aspects of investment.Thank you.

China News Service:

Last November, General Secretary Xi Jinping pointed out during a symposium on private enterprises that measures should be taken to address the difficulty in and high cost of financing for private firms. The central bank then put forward an array of policies to resolve the problem. My question is whether the measures have been effective for private businesses, including small and micro businesses, after one year of their implementation? And will further measures be rolled out? Thank you.

Yi Gang:

By applying an array of policies, we have achieved good results in addressing the difficulty and high cost of financing for private firms and small and micro businesses. The policies cover bank loans, bond issuance and equity financing. The People's Bank of China, the financial department, the supervisory department, local governments, and financial institutions have all been involved to do the job in an effort to achieve synergy. At the same time, monetary policy tools including reducing the required reserve ratio, targeted cuts to the required reserve ratio, relending and rediscounting have been employed to stimulate financial institutions to release more loans to private businesses and micro and small businesses. These measures have been proved effective as the loans on private enterprises grew rapidly this year.

Yi Gang:

Supporting the bond issuance of private companies also saw good results. We helped 66 private enterprises issue bonds totaling 48.8 billion yuan, and led by this, private companies have issued bonds totaling hundreds of billions of yuan. Some financial institutions and local governments followed suit and shared risks through the support of financing tools. This not only made bond issuance by private companies possible but lowered the interest rate for issuance. By the end of August this year, the balance of small and micro businesses' financial inclusion loans totaled 11 trillion yuan, up by 23 percent, 8 percentage points higher than the growth rate late last year. Then how many private firms and small and micro businesses have received loans? According to released figures, some 25 million private, small and micro business entities have received loans, which has promoted employment, entrepreneurship and the smooth running of the national economy. We also paid attention to their cost of financing and one year later, it is evident that the comprehensive financing cost has declined markedly. The People's Bank of China and other departments will continue making good use of the array of policies.

CRNTT:

We know that agrand exhibition of achievements in commemoration of the 70th anniversary of the founding of the PRC kicked off yesterday and is open to the public. The general public is anticipating it. Can you introduce it? What highlights should visitors be sure not to miss?

Ning Jizhe:

This is a good question. As you said, with the upcoming 70th anniversary of the founding of the PRC, the exhibition of achievements in commemoration of the 70th anniversary of the founding of the PRC is one of the earliest commemorative activities open to the general public. General Secretary Xi Jinping visited the exhibition and made remarks at the Beijing Exhibition Center yesterday afternoon. Yesterday morning, Premier Li Keqiang attended the opening ceremony of the exhibition and delivered a speech. Party and state leaders and some officials and residents of Beijing have already visited the exhibition. There are several characteristics of the exhibition as follows:

Ning Jizhe:

First, it has a distinct theme. The title of the exhibition is "Great Journey and Brilliant Achievements" and its theme is " opening and developing the path of socialism with Chinese characteristics and building a modern socialist country".

Ning Jizhe:

Second, it has a novel arrangement. Distinct from previous large-scale exhibitions featuring different sectors and parts, it is arranged in a chronological order like a Time Channel or Historical Corridor. In other words, the exhibition starts from 1949 and ends in 2019. The exhibition can be seen as annals of the PRC presented to the public in the form of an exhibition.

Ning Jizhe:

Third, it is rich in content. It consists of five sections, namely, Preface, Standing in the East (1949 to 1978),Reform and Opening-up (1978 to 2012), Rejuvenation (2012 to 2019), and Great Changes Before and Ahead. There are 1190 items and 150 exhibits featuring the "firsts" in the history of the PRC. A wall showcasing heroes and role models has been set up for each decade of development.

Ning Jizhe:

Fourth, it has multiple forms. The exhibition incorporates some 1700 historical photos, 180 videos and 650 objects, including the PRC's first Jiefang Brand vehicle, Hongqi Brand vehicle, Dongfeng Brand sedan car and tractor.There are nearly 100 models, over 20 interactive exhibits, and reproductions of 40 scenes from different periods of time, such as the scene of a wedding room in the 1950s against the backdrop of the promulgation of the PRC's first law—the Marriage Law. Other scenes are about the Daqing Oil Fields, the Red Flag Canal, fighting floods in 1998, the Wenchuan Earthquake in 2008, poverty alleviation, the rebuilding of shanty towns and so on. We welcome visitors to the exhibition and we will also have an online exhibition at the same time.

Financial Times:

My question goes to Mr. Yi. Over 30 banks did not publish their 2018 annual report on time and three of them have received assistance from related departments. Are more banks in need of assistance? What measures will the central bank take to deal with the problem?

Yi Gang:

You mentioned that several city commercial banks in China, some of whom are listed companies, have delayed releasing their annual reports for last year and have faced some risks. As you know, we are now in the second year of fighting the critical battle of guarding against and defusing financial risks. This second year is slated to be a tough year when many difficulties  are to be overcome and financial risks to be defused. Several small and medium-sized banks have released their overdue reports and adopted different ways to defuse the risks. The People's Bank of China and the China Banking and Insurance Regulatory Commission (CBIRC) have taken over Baoshang Bank in May in accordance with related laws. After the takeover, the legitimate rights of over 5 million depositors, over 200,000 clients who have invested in various financial products, as well as a majority of corporate business depositors are guaranteed. The bank is now operating smoothly, and clients can make deposit or withdrawals as usual.

Other banks like the Bank of Jinzhou, according to media reports, have found strategic investors who will help it defuse risks using a market-oriented approach. Some county-level rural credit cooperatives, rural commercial banks and rural cooperative banks are also actively increasing investment and shifting their business model to serving local communities. In the last few years, some local banks have engaged in over expansion into other regions and even other provinces. As a result, their business focus has been diverted to other regions or high-risk projects. While defusing risks, we are asking small and medium-sized financial institutions to focus on serving the real economy, private companies, and small businesses in the local area so as to ensure sustainable and risk-free operations.

The general principle is that we need to defuse these risks through market-oriented measures that are in accordance with the law. What does this mean? First, financial institutions should assume their due responsibilities, and shareholders should be held responsible. At the same time, the main creditors should have the capacity to identify risks, while the local governments, regulators and the People's Bank of China should also perform their duties in defusing risks. According to market- and law-based measures, shareholders and the institutions have their clear respective responsibilities. During the process, we should pay special attention to protecting the rights of common depositors and investors.

Based on the current situation, the overall risks are decreasing, people's confidence is gradually increasing, and the interbank premium risks are on the decline. If this trend continues, I think the banking sector will see smaller risks, and this will evolve into a mode of development where the shareholders take the primary responsibility and the banks serve primarily to the local market, the real economy and small businesses. Thank you.

CNR:

Canyou tell us more about the current operations of enterprise employees' pension funds? What measures have the finance departments taken to ensure that pensions are paid in full and on time?

Liu Kun:

Thanks for your question. First of all, China's pension funds are operating smoothly and the payment of pensions are guaranteed. Let me share some statistics with you. By the end of last year, the income for enterprise employees' pension funds was 3.8 trillion yuan and spending was 3.2 trillion yuan. Last year's balance was nearly 600 billion yuan, which contributed to the accumulated surplus, totaling 4.8 trillion yuan. From January to July, the pension income was 2.2 trillion yuan and spending was around 2 trillion yuan, with an annual surplus of 200 billion yuan, or around 5 trillion yuan in accumulated balance. From these statistics, we can conclude that the payment of old-age pensions is guaranteed.

We have also noticed that due to the increasing aging population, imbalanced population flow, as well as the fact that the funds cannot be transferred across different provinces, some provinces have indeed faced large pressures while trying to maintain their balance. Some provinces may encounter imbalances in their income and spending due to the dependency ratio problem. While Mr. Yi has used three "arrows" to improve financing conditions for private businesses and small and medium-sized enterprises, we want to help move the pension system toward a fairer and more sustainable path through the following four measures.

First, improve the proportion of the central government's allocation for employees' pension to relieve the pressure in some provinces. In 2019, we raised the proportion to 3.5%, making the total amount of allocation funds 630 billion yuan, among which 150 billion yuan is now benefiting the central and western regions as well as the regions of the old industrial bases. Through this measure, the pressure in the fund balance for some provinces have been effectively relieved and several provinces have solved their problems.

Second, nationwide implementation of the policy for transferring some state assets to the country's social security funds. In November 2017, the State Council announced a plan to transfer some state-owned assets into social security funds. Specifically, it decided to transfer 10% of shares of the large and medium-sized state-owned enterprises and financial institutions to the funds. After the announcement, the finance ministry as well as other related departments have been actively executing the plan through the pilot and tier-based principle to ensure its smooth implementation. At present, a total of 53 central state-owned enterprises and 14 central financial institutions have transferred around 860 billion yuan to the pension funds. Local authorities have also been progressing with first-phase preparations. In July this year, the Executive Meetings ofState Council decided to roll out the measure nationwide to increase social security funds. We will actively adopt measures to ensure its smooth operation nationwide.

Third, raise subsidies for pension funds. In recent years, the central government has been increasing the subsidies for pension funds on a yearly basis, particularly for the central and western regions as well as the regions of the old industrial bases that are suffering large imbalances. This year, the central budget plans to allocate 528.5 billion yuan in subsidies for pensions, up by 9.4% year-on-year, which is quite an increase compared to previous years. We will continue to increase the subsidies and support the full and timely payment of pensions.

Fourth, deepen institutional reform. According to the central government's arrangements and requirements, we will accelerate the establishment of a unified national platform for social security public services while supporting the unified provincial-level platform. We will improve incentives to encourage people to contribute more, establish and improve the mechanism for making reasonable adjustments to basic pensions, and continuously push for reform in the pension system. We will continue to improve the basic pension schemes for urban employees and for rural and urban residents, and act fast to incorporate all the pension schemes into a unified national framework and ensure that all the people can have access to elderly care.

Liu Kun:

That is my answer to your question. Just now a journalist asked about the exhibition of achievements, I also want to share my impressions after visiting the exhibition yesterday. I was very emotional when I toured the exhibition. There are indeed plenty of achievements that China has accomplished over the past 70 years and many exhibits worth seeing, such as the first tractor and the first automobile. I was extremely excited when I saw one of the models. Some journalists present were born after 1980. There is an exhibit simulating the scene of the national college entrance exam back in 1977, which made me choke up with emotions.

Yi Gang:

I sat for the exam in 1977 in the suburbs of Beijing.

Ning Jizhe:

I took the exam in Guangde, Anhui province in 1977. All three of us sat for the college entrance exam in 1977.

Chairperson:

The ministers' introductions have made us look forward even more to visiting the exhibition. Hopefully our media friends will visit it.

Reuters:

My question is for Mr. Yi. With an increasing downward pressure on the economy, is the PBOC considering making further cuts to interest rates and the required reserve ratios? Or will it maintain economic stability by devaluing the RMB to some extent? Do you think the policy space will be restrained by debts, property risks or inflation expectations? Thank you.

Yi Gang:

At present, the world economy is indeed facing downward pressure. So is the Chinese economy, if you look at the recent economic statistics. However, on the whole, the Chinese economy is operating within its proper range. Moreover, there is ample policy space for China's macro-economy policies, especially its fiscal and monetary policies, when addressing the downward pressure. Take the monetary policy as an example. The interest rates remain at an appropriate level. And the current required reserve ratio has left ample space for possible adjustments of macro policies in the future.

Yi Gang:

But I want to stress that the PBOC, unlike the central banks in some other countries, is not eager to make large cuts in interest rates or adopt quantitative easing policies. Our judgement is that we should stay focused and adopt a prudent monetary policy. An objective analysis also shows that we still have ample space to use monetary policy instruments as well as macroprudential policy instruments. There are concerns that if the world economy did move downward, major developed countries might use up all their monetary policy instruments–adopting a zero-interest or even negative interest policy. In my opinion, we should cherish the normal monetary policy space during our operations and keep normal monetary policy as long as possible. That will contribute to sustainable economic development and benefit the people. Thank you.

Chairperson:

Thanks again to the three speakers. We will hold another press conference at 3 p.m. to introduce this year's military parade. We welcome all of you to attend it. That's all for this conference. Thank you.