Read in Chinese
Speakers:
Mr. Zhao Chenxin, vice chairman of the National Development and Reform Commission (NDRC)
Mr. Zhang Shixin, deputy secretary general of the NDRC
Mr. Yuan Da, deputy secretary general of the NDRC
Mr. Xiao Weiming, deputy secretary general of the NDRC
Chairperson:
Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO
Date:
Aug. 1, 2024
Shou Xiaoli:
Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO), as part of the series "Promoting High-Quality Development." Today, we have invited Mr. Zhao Chenxin, vice chairman of the National Development and Reform Commission (NDRC), to brief you on relevant developments and answer your questions. Also present today are deputy secretaries general of the NDRC, Mr. Zhang Shixin, Mr. Yuan Da and Mr. Xiao Weiming.
Now, I'll give the floor to Mr. Zhao for his introduction.
Zhao Chenxin:
Thank you. Good morning. I am delighted to be here today alongside my three colleagues for this press conference.
Pursuing high-quality development is our top priority in the new era. Since the 18th National Congress of the Communist Party of China (CPC), the Party Central Committee with Comrade Xi Jinping at its core has pursued a strategy of national rejuvenation amid global changes of a magnitude not seen in a century, with a strategic vision, broad perspectives and deep commitment. High-quality development has been prioritized as the primary task in building China into a modern socialist country in all respects. By effectively leveraging reform and opening up as a crucial means, we have injected strong momentum into promoting high-quality development. The NDRC has diligently implemented the decisions and arrangements of the Party Central Committee and the State Council, faithfully fulfilling its duties of macro-management and comprehensive economic coordination. We have comprehensively deepened economic structural reforms, striving to pursue higher-quality economic growth and appropriately increase economic output. I would like to summarise our achievements in six aspects.
First, the macroeconomic governance system has continuously improved, significantly enhancing our economic strength. We have fully utilized the strategic guiding role of national development planning, and strengthened the coordination of fiscal, monetary, employment, industrial, investment, consumption, environmental protection and regional policies. Rigorous assessments of policy alignment with broader macroeconomic objectives have resulted in more forward-looking, targeted and effective macroeconomic regulation. Consequently, China's economic strength has reached new heights. In 2023, our GDP surpassed 126 trillion yuan (about $17.71 trillion); and for years, China has been the world's largest engine of economic growth, contributing over 30% to global growth.
Second, the science and technology innovation system has continuously improved, and the modern industrial system has grown robustly. We have continued to focus on developing the real economy. We have established a technology innovation system that enables enterprises to play a major role in innovation, guided by market demands and supported by universities, research institutes and end-users. We have actively advanced supply-side structural reforms, accelerated the transformation of traditional industries, fostered the growth of emerging sectors, continually optimized our industrial structure and accelerated the transformation of growth drivers. From 2013 to 2023, the value-added of high-tech manufacturing above designated size grew by an average of 10.3% annually, with China becoming the first country to have more than 4 million valid invention patents.
Third, the construction of our market system has achieved positive results, continuously energizing various business entities. Over the past decade, the building of a high-standard market system has steadily advanced, the market-based allocation of production factors has been deepened, a unified national market has been rapidly established, and the layout and structural adjustment of the state-owned sector have been improved. The system and mechanism for promoting the high-quality development of private businesses have been continuously improved. As a result, an institutional environment characterized by effective market mechanisms, vibrant microeconomic entities, and appropriate macroeconomic regulation has been gradually perfected.
Fourth, the establishment of a new system for an open economy has accelerated, and high-quality cooperation under the Belt and Road Initiative (BRI) has been solidly promoted. Over the past decade, a broader agenda of opening up across more areas and in greater depth has been advanced, continuously promoting institutional openness in rules, regulations, management and standards. The system of pre-establishment national treatment plus negative list for foreign investment has been fully implemented, accelerating the fostering of a world-class business environment that is market-oriented, law-based and internationalized. China has become a major trade partner for over 140 countries and regions and has signed more than 230 BRI cooperation documents with over 150 countries and more than 30 international organizations.
Fifth, reform and innovation in social programs have deeply progressed, continuously enhancing our capacity to ensure the people's well-being. Focusing on solving pressing difficulties and problems that concern the people most, we have introduced a series of reform measures in income distribution, employment, education, social security, elderly care, child care, health care and housing security. From 2013 to 2023, we have created over 140 million jobs in urban areas, and the per capita disposable income of residents has increased by an average of 6.2% annually in real terms. China has achieved the historic elimination of absolute poverty and built the world's largest education, social security and health care systems. Additionally, environmental protection in China has undergone historic, transformative and comprehensive changes.
Sixth, adhering to a holistic approach to national security, our capabilities to safeguard economic security have continued to improve. Our food production, purchase, storage, processing and sales systems have been continuously strengthened. Our total grain output in 2023 reached 1.39 trillion jin (695 million metric tons), achieving basic self-sufficiency of grain and absolute security of staple food. The energy revolution has been accelerated, continuously enhancing our green, low-carbon energy security capabilities. The installed capacity of renewable energy in 2023 exceeded 50% of the total installed power generation capacity nationwide. Moreover, China's newly-added installed capacity of renewable energy exceeded 50% of the global total. At the same time, China's industrial and supply chains became more self-supporting. The supply and prices of major commodities and raw materials have been kept stable in an effective and orderly manner. Data security capability building is continuously advancing, and the systems and mechanisms for financial risk prevention and control are gradually being perfected.
The present and the near future constitute a critical period for our endeavor to build a great country and move toward national rejuvenation on all fronts through Chinese modernization. We must continue to push forward with our reform efforts. We will thoroughly implement the principles of the third plenary session of the 20th CPC Central Committee and fully advance the major tasks of economic structural reform. We will focus on resolving bottlenecks and blockages that hinder high-quality development, as well as cultivating and enhancing endogenous driving forces for high-quality development. This approach aims to comprehensively promote Chinese modernization through high-quality development.
That concludes my introduction. My colleagues and I are now ready to take your questions. Thank you.
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Shou Xiaoli:
Thank you, Mr. Zhao, for the introduction. Now, the floor is open to questions. When asking your question, please begin by stating the media outlet you represent.
CCTV:
My question is for Mr. Zhao. Now that we're halfway through 2024, how would you assess the economic trends of the first six months? Additionally, what are your projections for the economy in the latter half of the year? Do you think macroeconomic policies need to be strengthened, and do you believe it's feasible to meet the economic growth targets set at the beginning of the year? Thank you.
Zhao Chenxin:
Thank you for your questions. Since the beginning of this year, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China's economic performance has been generally stable with progress. It has continued its trend of recovery and improvement, with new momentum and new advantages developing rapidly. High-quality development is advancing steadily, and the overall social situation remains stable. Specifically, I would like to introduce three aspects: First, the economy is growing reliably. Agricultural production remains generally stable, industrial growth is rapid, and the service sector is developing steadily. Consumption, investment, and export demand are pulling together harmoniously. Major economic provinces continue to play a pivotal role in economic development, driving a 5% year-on-year increase in GDP in the first six months. Considering rising uncertainties in the external environment and domestic economic risks and challenges, such an achievement is truly remarkable. Second, there's a steady improvement in quality. This is reflected by the accelerated cultivation of new quality productive forces, the rapid advancement of green and low-carbon development, and the quickening transition from old to new growth drivers. Let me give you a figure: In the first half of the year, the added value of the high-tech manufacturing industry and equipment manufacturing above designated size increased by 8.7% and 7.8%, respectively. Third, people's livelihoods continue to improve. Employment conditions, residents' income, price levels, and basic public services are improving.
Regarding the economic trends in the second half of the year, which you are most interested in, we need to view them comprehensively and dialectically. On the one hand, we must recognize several challenges. These include the increasing adverse effects of changes in the external environment and insufficient domestic effective demand. We also face differentiation in economic operations and numerous risks and hidden dangers in key areas. Additionally, we must acknowledge the growing pains associated with transitioning from old to new driving forces. These difficulties and challenges stem from both the intertwined external environment and the necessary pains of economic structural reform and the push for high-quality development. Looking back at our history of economic development, we can see that China's economy has grown stronger by overcoming one difficulty after another. On the other hand, we should also acknowledge the accumulation of positive factors and favorable conditions in economic operations. Externally, international trade growth has somewhat recovered, and emerging economies are developing rapidly. This benefits Chinese enterprises by leveraging their advantages to expand into international markets. In terms of macroeconomic policy, major initiatives deployed by the CPC Central Committee and the State Council are accelerating. These include implementing major national strategies, building up security capacity in key areas, and initiating a new round of large-scale equipment renewals and trade-ins of consumer goods. Projects such as ultra-long-term special bonds, central budget investments, local government special bonds, and the 2023 additional national bonds are all speeding up, forming substantial work volumes. It can be said that there is still ample space for counter-cyclical policy adjustments. Regarding high-quality development trends, various regions are developing new quality productive forces suited to local conditions. Emerging industries such as new energy vehicles are developing well, future industries are being systematically laid out, new driving forces are rapidly growing, and the green transition of our development model is steadily advancing. Regarding development vitality, the third plenary session of the 20th CPC Central Committee has outlined a series of major reform measures. These will effectively address deep-seated institutional barriers and structural contradictions, greatly stimulating market entities' enthusiasm, initiative, and creativity.
As we've seen in the news, the third plenary session of the 20th CPC Central Committee emphasized the importance of remaining firmly committed to accomplishing this year's economic and social development goals. On July 30, just two days ago, the Political Bureau of the CPC Central Committee made plans for economic work in the second half of the year. We will firmly ensure the implementation of these decisions. The decisions and arrangements of the CPC Central Committee and the State Council are being implemented quickly. As these policies take effect, the foundation for continuous economic recovery will be enhanced and solidified. We have the conditions, abilities, confidence and determination to overcome problems or challenges during development and transformation. We are poised to accomplish this year's goals successfully and to a high standard.
That's all for my introduction. Thank you.
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21st Century Business Herald:
The meeting of the Political Bureau of the CPC Central Committee proposed making good use of ultra-long special treasury bonds to support major national strategies and build up security capacity in key areas. What progress has been made in this respect? What is the situation with major project approvals? What considerations do you have for the future implementation of supporting major national strategies and building up security capacity in key areas? Thank you.
Zhao Chenxin:
Mr. Zhang, please answer the questions.
Zhang Shixin:
Thank you for your questions. Issuing ultra-long special treasury bonds to support major national strategies and build up security capacity in key areas is a major strategic decision and deployment made by the CPC Central Committee and the State Council. It focuses on the overall situation of building a great country and achieving national rejuvenation. It is an important lever for promoting Chinese modernization, driving high-quality development, and taking an active approach to development.
Recently, in accordance with the decisions and requirements from a meeting of the Political Bureau of the CPC Central Committee and the State Council's video conference on mobilizing support for the construction of projects to implement major national strategies and build up security capacity in key areas, the NDRC continues to promote one-stop government services, and has established and refined a collaborative working mechanism with 30 departments and agencies. We aim to comprehensively advance key tasks in both "hard investments" and "soft construction," and ensure high-quality implementation across all aspects of these projects.
Regarding "hard investments," we have worked with relevant departments to organize projects from top to bottom, employing rigorous screening and selection criteria. Priority has been assigned to major landmark projects spanning regions and river basins, ensuring these initiatives effectively implement major national strategies and build up security capacity in key areas. Currently, the list for the first two batches of this year's projects has been issued, focusing on areas such as accelerating scientific and technological self-reliance and strength, promoting coordinated regional development, enhancing food and energy security, driving high-quality population development, and comprehensively advancing the Beautiful China Initiative. We are currently working diligently to ensure rapid fund allocation and expedite the commencement of project construction.
In terms of "soft construction," we are adhering to the principle of combining project development with supporting reforms. We are accelerating research and formulation of policies, plans, and innovations in systems and mechanisms as part of our "soft construction" reform measures, aiming to improve investment mechanisms and enhance investment efficiency. To date, we have promoted the issuance of a series of policy documents, such as those aimed at promoting the high-quality development of venture capital. Relevant policies, measures and long-term mechanisms are being continuously refined and improved.
Next, we will thoroughly study and implement the guiding principles from the third plenary session of the 20th CPC Central Committee, adhering to the principle of putting equal emphasis on quality and efficiency. We will diligently carry out the follow-up work of organize and select projects, enhance digital monitoring and daily coordination, and conduct timely on-site inspections to accelerate project initiation. Simultaneously, in conjunction with project investments, we will promptly formulate and issue supporting policies and reform measures for "soft construction," continuously optimizing institutional supply to promote the achievement of our goals. Thank you.
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Reuters:
We have noticed that the recent meeting of the Political Bureau of the CPC Central Committee emphasized expanding domestic demand with a focus on boosting consumption. It suggested that policy efforts should shift toward improving people's livelihoods, promoting consumption, and increasing people's income. Additionally, the government has recently earmarked a portion of treasure bonds to fund consumer goods trade-in initiatives. We would like to ask if this indicates a policy adjustment, as previously, our policy focus was mainly on investment and supply-side measures. Moreover, could you predict whether the policies to promote consumption will take effect soon and whether they will help achieve this year's goals? Thank you.
Zhao Chenxin:
Let's invite Mr. Yuan to answer the question.
Yuan Da:
Thank you for your questions. According to the arrangements of the CPC Central Committee and the State Council, the NDRC, in collaboration with relevant departments, has recently allocated approximately 300 billion yuan in ultra-long special treasury bonds to facilitate large-scale equipment renewal and encourage consumer goods trade-ins. This includes directly allocating around 150 billion yuan to local governments to support consumer goods trade-ins, allowing the "real benefits" of the policy to reach consumers more quickly and conveniently, thereby better meeting residents' needs for consumption upgrades. We believe the policy effects will gradually become apparent.
The Political Bureau of the CPC Central Committee recently held a meeting to make comprehensive arrangements for economic work in the second half of this year. Moving forward, the NDRC will work with relevant departments to fully implement all assigned tasks, including facilitating large-scale equipment renewal and encouraging consumer goods trade-ins. We will further deepen reform comprehensively with a view to advancing Chinese modernization, strengthen macro regulation, deepen innovation-driven development, tap into the potential of domestic demand, and reinforce the momentum for economic recovery and growth. We must remain firmly committed to accomplishing the goals for this year's economic and social development, and will focus on the following six areas:
First, we will speed up the implementation of landmark reform measures. We will take the economic structural reform as an engine of progress and promptly introduce a batch of mature and tangible reform measures. This includes launching guidelines for the development of a unified national market, releasing a new version of the negative list for market access, and creating a fairer and more dynamic market environment. We will actively cultivate new growth drivers for foreign trade, expand trade in intermediate goods and green trade, and make greater efforts to attract and utilize foreign investment.
Second, we will enhance the intensity and effectiveness of macro policies. Macro policies will continue to be forceful and more effective, with additional policies introduced as the situation changes, thereby continuously improving the capacity for policy implementation. We will coordinate efforts in "hard investments" and "soft construction," combining project construction with policy, planning, and mechanism development to accelerate the construction of projects that implement major national strategies and build up security capacity in key areas. The policies and measures to intensify support for initiatives facilitating large-scale equipment renewal and encouraging consumer goods trade-ins will be implemented and are expected to deliver substantial results as soon as possible.
Third, we will actively expand domestic demand. We will place greater emphasis on promoting consumption, encouraging the purchase of commodities such as automobiles and home appliances, and improving and expanding service consumption in education, elderly care, child care and domestic services. We will also support the high-quality development of cultural, sports, and tourism sectors, continuously optimize measures to facilitate two-way travel, and make it more convenient for foreigners to travel in China. Additionally, we will promote effective investment by advancing the construction of 102 key projects listed in the 14th Five-Year Plan, accelerating the issuance and use of special-purpose bonds for local governments, putting in place a new mechanism for cooperation between government and private capital, and further stimulating private investment. We will also coordinate efforts in new urbanization and all-around rural revitalization and promote the implementation of major regional strategies.
Fourth, we will accelerate the development of a modernized industrial system. We will foster new quality productive forces tailored to local conditions, step up efforts to secure breakthroughs in core technologies in key fields, make a big push to foster emerging industries and industries of the future, and promote the transformation and upgrading of key industries. We will accelerate the clean-up in outdated and inefficient production capacity, promote the full integration of the real economy and the digital economy, and effectively reduce logistics costs across society.
Fifth, we will defuse risks in key areas in a steady and orderly manner. We will ensure the implementation of the new policies aimed at promoting the stable and healthy development of the real estate market, intensify our efforts to ensure the handover of buildings, and speed up building the new development model of the property industry. We will implement a package of debt relief plans, and continue refining the specific measures in a targeted manner. We will also deal prudently with financial risks, so as to strengthen the systems that safeguard financial stability and effectively prevent and mitigate systemic financial risks.
Sixth, we will work harder to ensure and improve people's livelihoods. We will ensure employment for key groups such as college graduates, boost people's incomes through multiple channels, and deepen the reform of public services like elderly and child care. We will make efforts to implement the action plan for energy conservation and carbon reduction for 2024-2025. Moreover, we will ramp up efforts in preventing and responding to extreme weather events and natural disasters, and ensure power supply during peak periods in summer. Thank you.
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China News Service:
Mr. Zhao has introduced the remarkable achievements made in reforming the economic system. Over the past few years, China's economy has been experiencing continued growth, and new scientific and technological breakthroughs are constantly being made. We can see that more policies have been adopted to support private businesses, and the application of new technologies are making people's lives more convenient. Public services and ecological environment are getting better and better. All these reflect the achievements of China's economic system reform. As such, what efforts will be made to build a high-standard socialist market economy? Thank you.
Zhao Chenxin:
Thank you for your question. I think your concern is mainly about the reform of the economic system. As you mentioned, since the Third Plenary Session of the 18th CPC Central Committee, China has made remarkable achievements in its reform of the economic system. These are the result of our all-round and systemic efforts. Over the past few years, China's socialist market economy has become more systematic, mature and well-shaped, injecting strong impetus into high-quality development. However, we need to understand that there are still some problems to overcome in advancing high-quality development. I think this perfectly fits the saying that everyone knows so well — the development of our cause shows us what needs to be changed, while reform is the means by which we change it. The NDRC will implement the guiding principles of the Third Plenary Session of the 20th CPC Central Committee, and take the building of a high-standard socialist market economy as its top priority. We will promote reform of the economic system, and ensure the implementation of major tasks. While properly handling the relationship between the government and the market, we will strengthen the reform in key areas and major fields, and give full play to the role of the "invisible hand" of the market and the "visible hand" of the government. We will lift restrictions on the market while ensuring effective regulation, so as to add impetus and vitality to economic and social development. To this end, we will ramp up our efforts in two aspects.
First, we will boost the vitality of enterprises under all forms of ownership with further reform, and work unswervingly both to consolidate and develop the public sector and to encourage, support and guide the development of the non-public sector. When it comes to the reform of state-owned enterprises (SOEs), we will strengthen and improve management over the public sector, setting up the guiding systems for improving the layout of the state-owned sector and adjusting its structure, so as to guide the public sector to invest more in major fields that are crucial for safeguarding national security, supporting sci-tech progress, improving the national economy and people's lives, and providing public services. When it comes to the private sector, we will fully implement guidelines and supporting measures for boosting development of the private sector. The NDRC is working with multiple departments on the formulation of a law to support the development of the private sector. By doing so, we aim to protect the property rights of private companies and the rights and interests of entrepreneurs in accordance with the law, and improve the system and mechanism for private enterprises to participate in national major strategies. This will also help address the pressing difficulties and problems that concern business entities most, such as market access, access to factors of production, and impartial law enforcement. Moreover, we will refine the modern corporate system with distinctive Chinese features, and cultivate more world-class enterprises. Through these measures, we will ensure that economic entities under all forms of ownership have equal access to factors of production in accordance with the law, compete in the market on an equal footing, and are protected by the law as equals, thus enabling them to complement each other and develop side by side.
Second, we will further advance the reform of the market system in a bid to make the market environment fairer and more dynamic. We will continue to carry out reform tasks listed in the action plan for the development of a high-standard market system. First, we will reinforce the institutional foundation for the building of a high-standard market system. Efforts will be made in such areas as property rights protection, negative list for market access, fair competition, innovation across the board, and social credit. For example, the negative list for market access, adopted in 2018, has been revised three times, greatly reducing the number of items on the list, and removing many entry barriers that the public and enterprises are highly concerned about. This has helped to inspire vitality in the market. Going forward, we will promote the introduction of guidelines on improving the market access system and publish a new version of the market access negative list. Moreover, we will introduce a batch of special measures to relax market access in a bid to explore further relaxing market access nationwide and providing a broader development space for various business entities. Second, when it comes to the allocation of production factors, we will continue to advance the comprehensive reform trials for the market-based allocation of production factors, and improve the system for the market-based allocation of resources and environmental factors, so that advanced and high-quality production factors can flow smoothly and be allocated effectively toward the development of new quality productive forces. Third, in order to boost the flow of the economy, we will accelerate the building of a unified national market, and formulate guidelines for the construction of a unified national market, making greater efforts to break down barriers and constraints such as local protectionism and market segmentation. Through these measures, we will continuously unleash the internal driving forces and creativity of the whole of society, and inject a steady stream of momentum into the advancement of Chinese modernization.
That is all for my introduction. Thank you.
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Hong Kong Bauhinia Magazine:
Recently, the NDRC published a notice on comprehensively implementing the regular issuance of real estate investment trusts (REITs) in the infrastructure sector. The move has attracted significant attention from the capital market. What are the main changes in the regular issuance mechanism compared to the policies in the pilot phase? Thank you.
Zhao Chenxin:
I'll give the floor to Mr. Zhang to address this question.
Zhang Shixin:
Thank you for this question. The NDRC recently published a notice to promote the regular issuance of REITs in the infrastructure sector. This represents a significant step towards further advancing institutional and mechanism reforms in investment and financing while simultaneously fostering the development of a multi-tiered capital market. The move signifies that infrastructure REITs with Chinese characteristics have officially entered a new phase of regularized issuance.
Since the pilot program was initiated in 2020, the NDRC has recommended 67 infrastructure REIT projects to the China Securities Regulatory Commission (CSRC), including those involving offering new shares. Among them, 44 projects have gone public, raising 128.5 billion yuan in funds. The net recovered funds used for new investment have exceeded 51 billion yuan. These funds could potentially lead to a total investment of more than 640 billion yuan in new projects. Over the four-year pilot period, China's infrastructure REITs have seen continuous improvement in institutional arrangements and regulations, sustained growth in issuance scale, and a constant increase in asset types. Market performance remains generally stable, and related parties have become increasingly proactive in participating. Infrastructure REITs are gradually playing a significant role in promoting institutional innovation of investment and financing, deepening capital market reforms, and supporting the real economy. Therefore, the transition to the regular issuance of infrastructure REITs is underpinned by a solid foundation.
Based on the experience of this pilot program, the notice aims to establish a mechanism for regularly issuing infrastructure REITs. Guided by market-oriented and law-based rules, the notice upholds the principle of enhancing related institutional arrangements, standards and regulations while comprehensively improving the application and recommendation mechanisms. The new changes can be summarized in the following four aspects. First, the government review process has become more focused, with clear boundaries established between the roles of the government and the market. The notice specifies that the NDRC's review work will primarily focus on the basic requirements of the programs, their alignment with macro policies, compliance with investment-related regulations, and the use of recovered funds. The NDRC will no longer impose requirements on matters that should be decided by the market and implemented by businesses. Second, infrastructure REITs have been expanded into more sectors to further boost market vitality. New assets, including environmentally friendly and highly efficient coal power plants and elderly care-related infrastructure projects, have been added. The NDRC has also appropriately relaxed the requirements concerning offering new shares of specific projects and those with large-scale initial public offerings (IPO). The utilization of recovered funds has also become more flexible. Third, project application and recommendation administration procedures have been streamlined to enhance operational efficiency. In addition to simplifying administrative procedures and eliminating early-stage counseling, the notice specifies that provincial development and reform commissions or central state-owned enterprises (SOEs) are now authorized to submit applications directly. Concurrent with this, specific time limits for each procedure have been established. Fourth, the distinction between powers and responsibilities has been further clarified to ensure project quality. Maintaining the consistency of powers and responsibilities and strictly implementing the project withdrawal mechanism to promptly retract ineligible projects is essential. Additionally, more punitive and deterrent measures will be taken against institutions and agencies, as well as counseling and reviewing organizations that violate related regulations.
Moving forward, the NDRC will thoroughly study and implement the guiding principles of the third plenary session of the 20th CPC Central Committee. It will put into practice the decisions and plans of the Party Central Committee and the State Council and strengthen collaboration with the CSRC. Taking the publication of the notice as an opportunity, the NDRC will launch a series of programs on policy communication and interpretation. We will also expedite the establishment of supporting institutional arrangements and regulations while organizing training and exchange events. These efforts will facilitate the smooth implementation of regular issuance mechanisms for infrastructure REITs. Moreover, the NDRC will work to put idle funds to good use, further facilitate a sound flow of investment, and better leverage the capital market's role in supporting the real economy to bolster high-quality economic growth. Thank you.
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Phoenix TV:
What progress has been made in building a unified national market? How does this initiative contribute to facilitating high-quality development? What additional measures will the NDRC take to advance this initiative further? Thank you.
Zhao Chenxin:
I'll give the floor to Mr. Xiao to address these questions.
Xiao Weiming:
Thank you for your questions. Building a unified national market is a crucial aspect of developing a high-standard socialist market economy. This initiative is closely related to people's lives, therefore drawing significant public attention. Mr. Zhao has already addressed some aspects of this initiative just now. In recent years, the NDRC has collaborated with related state organs and local governments in accordance with the decisions and plans of the CPC Central Committee and the State Council, particularly the requirements outlined in the guideline of the CPC Central Committee and the State Council to accelerate the establishment of a unified domestic market. Following the general principle of establishing the new before abolishing the old, the NDRC has implemented a unified approach encompassing planning, execution and oversight measures. As a result, there has been a significant increase in consensus across all sectors of society, and the initiative's effect is gradually taking shape, with specific progress seen in the following two aspects.
First, by "establishing the new," we aim to improve basic institutional arrangements concerning property rights protection, market access, fair competition and social credit. For example, new regulations for fair competition reviews have officially taken effect today, Aug. 1, representing a significant enhancement to our foundational legal framework. In addition, the number of restrictions in the country's negative list for market access has been cut from 151 in 2018 to 117, with further reductions expected. Moreover, China has also expedited the construction of high-quality integrated multidimensional transportation networks. Currently, China ranks first globally in terms of both the length of high-speed railways in service and the length of completed expressways. China has also completed the construction of the world's largest fiber-optic and mobile broadband network. All these infrastructure projects have contributed to a continuous decline in the ratio of social logistics costs to GDP, which reached 14.2% in the first half of this year, a year-on-year decrease of 0.3 percentage point. China has also completed unified registration of immovable property, with data-related basic institutional arrangements improving continuously. The national 12315 consumer dispute resolution public platform has come into operation, taking the capacity of a unified goods and services market to a higher level. Additionally, list-based management measures have been implemented for administrative penalties and enforcement actions related to market oversight.
Second, by "abolishing the old," we aim to remove obstacles that hinder the development of a unified national market through substantial efforts. We have established a system for rectifying problems, admonishing those responsible, and issuing notice of criticism to typical cases related to improper interventions with the construction of a unified national market. We work to identify and resolve problems, particularly with a focus on local protectionism and market segmentation, which are major concerns for market entities. Through rigorous investigation and corrective action, we have rectified a number of prominent problems in sectors such as government procurement, new energy vehicles, energy resources and pumped storage. Both businesses and the people have tangibly benefited from these initiatives. Furthermore, we have promoted some local practices in standardizing provincial tender documents and introducing negative lists for compiling these documents.
Looking ahead, we will resolutely follow the resolution adopted at the third plenary session of the 20th CPC Central Committee, collaborate with pertinent bodies to consolidate these achievements, accelerate the enhancement of fundamental systems that are vital for fostering a unified national market, and advance the construction of unified markets in pivotal areas such as transportation, commercial logistics and energy market. We will continue to rectify prominent problems in key areas and vigorously eliminate local protectionism as well as market segmentation. Our new progress made in establishing a unified national market will significantly boost the development of a high-level socialist market economy.
That's all from me. Thank you.
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National Business Daily:
We are rather concerned about the development of the private economy. It has been over a year since the Opinions of the CPC Central Committee and the State Council on Promoting the Development and Growth of the Private Economy was published. What progress has been made in this regard over the past year? What steps will be taken next to further boost confidence in the growth of the private economy? Thank you.
Zhao Chenxin:
I would like to direct these questions to Mr. Yuan Da.
Yuan Da:
Thank you for your questions. As Mr. Zhao mentioned, we have been consistently upholding and fulfilling the commitments to the public and non-public sectors. Following the CPC Central Committee and the State Council's publication of the Opinions on Promoting the Development and Growth of the Private Economy last July, the NDRC along with related departments has diligently worked to implement these measures effectively, thereby bolstering the progress of the private economy. I would like to briefly outline some of these endeavors.
First, we have continuously optimized the business environment. We have moved faster to build a unified national market, conducted special campaigns to resolve the issue of overdue payments to enterprises, and established the national financing credit service platform and the platform for recommending projects to the private capital, among others. We have built sound communication mechanisms to facilitate regular interactions between the government and private businesses at the national, provincial, municipal and county levels. Significant meetings focusing on the private sector were organized across various locations such as Wuxi, Jinjiang in Quanzhou, Wenzhou and Shenzhen, where we took the initiative to make interpretations of relevant policies and promote experiences.
Second, we have made a concerted effort to enhance support of elements and resources. We have introduced and implemented 25 measures on providing financial support for the private economy and have continuously improved the unified markets for urban and rural construction land and professional talent.
Third, our commitment to the rule of law remains unyielding. We are continuously enhancing a legal system related to enterprises and advancing the formulation of a private sector promotion law. A number of major wrongful criminal cases concerning property rights have been corrected.
Through the joint efforts of all parties, the private economy has maintained steady and sound momentum. In the first half of the year, the industrial added value of private industrial enterprises above the designated size grew 5.7% year on year, 3.8 percentage points higher than the same period last year. RMB-denominated exports by private enterprises rose 10.7%, outpacing the overall export growth by 3.9 percentage points and elevating their share of the country's total exports to 64.9%, a year-on-year increase of 2.3 percentage points. As of the end of June, more than 55 million private enterprises had been registered, marking a year-on-year increase of 7.8%; the number of self-employed individuals reached 125 million, up 5.1% year on year; and the total number of private market entities surpassed 180 million, accounting for 96.4% of the total.
Looking ahead, the NDRC will thoroughly implement the decisions and plans of the third plenary session of the 20th CPC Central Committee, giving full play to the interdepartmental joint meeting mechanism for fostering the expansion of the private economy. We will remain committed to the guidelines and polices for providing a conducive environment as well as numerous opportunities for the private sector, and advance the sustained and healthy development of the private economy. First, we will bolster policy support. We will support capable private enterprises in leading national initiatives to make breakthroughs in major technologies and provide private enterprises with greater access to major national scientific research infrastructure. We will refine financing support policies for private businesses, build a sound credit enhancement system for small and medium-sized enterprises within the private sector, and speed up efforts to alleviate financing difficulties and high financing costs. Second, we will remove obstacles to market access. We will work to see that the competitive areas of infrastructure are open to market entities in a fair manner, improve the long-term mechanism by which private enterprises participate in major national projects, and cultivate an open, transparent, and convenient market access environment. Third, we will strengthen legal guarantees. We will formulate a private sector promotion law. We will improve the legal framework for the long-term regulation of charges levied on enterprises and for clearing overdue payments owed to them. We will work to bolster law enforcement and justice administration to protect property rights and establish an efficient system for the comprehensive management of intellectual property rights. Thank you.
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Market News International:
The NDRC recently expressed support for high-quality Chinese companies to borrow medium- and long-term foreign debt. Which industries and fields will this policy be mostly focused on? Thank you.
Zhao Chenxin:
Thank you for your question. Borrowing foreign debt, particularly medium- and long-term foreign debt, is a very important aspect of effectively utilizing foreign capital and expanding bilateral openness in China. Recently, to further enhance the convenience of cross-border investment and financing for enterprises, the NDRC has issued a notice supporting high-quality enterprises in obtaining medium- and long-term foreign debt to promote high-quality development of the real economy. It proposes a series of practical measures and related requirements, including appropriate simplification of the approval and registration requirements, streamlining the procedures, and preventing risks associated with foreign debt.
I'd like to briefly introduce it further. We have two main considerations for high-quality enterprises subject to relevant policies and measures. On the one hand, we focus on enterprises with prominent industry status and good credit. We aim to support competitive and creditworthy enterprises by reasonably lending them medium- to long-term foreign debt. This improves capital use efficiency based on the basis of their main operating financial indicators and credit ratings. Our goal is to improve the quality and standing of Chinese enterprises' overseas bonds overall and reduce risks such as debt default. On the other hand, we consider enterprises that play a leading role in promoting the high-quality development of the real economy. We treat companies of all industries, fields and ownership types equally, in line with national macro regulation and industrial policies. We support more high-quality enterprises in borrowing foreign debt according to their business development needs. This approach aims to better leverage foreign debt funds to serve high-quality development.
That is all from me for this question. Thank you.
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Guangdong Radio and Television:
The Shenzhen-Zhongshan Link recently opened to traffic. What benefits will this bring to the development of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA)? In recent years, the CPC Central Committee has deployed several major regional development strategies. What progress has been made? How will the NDRC work to promote the implementation of these strategies going forward?
Zhao Chenxin:
I will invite Mr. Xiao to answer your questions.
Xiao Weiming:
Thank you for your questions. The Shenzhen-Zhongshan Link is another major bridge spanning the Pearl River estuary. It's the latest super-large transportation project completed in the Guangdong-Hong Kong-Macao GBA, following the Hong Kong-Zhuhai-Macao Bridge. General Secretary Xi Jinping sent a congratulatory letter for its opening. The Shenzhen-Zhongshan Link is not only an important hub for infrastructure connectivity in the GBA but also a landmark project promoting the implementation of major regional strategies. Since its opening one month ago, traffic volume has exceeded 3 million vehicles, averaging 100,000 per day, accounting for nearly one-fourth of the total traffic volume across the Pearl River estuary. The driving time from Shenzhen to Zhongshan has been shortened from the original two hours to less than 30 minutes, and transportation between the east and west banks has become smoother. This has dramatically improved the flow of people and goods on both banks of the Pearl River estuary and has effectively promoted the advantages and leading role of east coast cities such as Shenzhen, injecting new impetus into the integrated development of the GBA.
Since the 18th CPC National Congress, General Secretary Xi Jinping has personally planned, deployed and promoted a series of major regional strategies. The NDRC, together with relevant authorities, has earnestly implemented these strategies. We have continuously established and improved institutional mechanisms for coordinated regional development. Our efforts have supported various regions in relying on their resource endowments and leveraging their comparative advantages. This approach has paved the way for a more reasonable division of labor and optimized regional development. As a result, we're creating a regional economic layout characterized by complementary advantages and high-quality development. Specifically:
In promoting the coordinated development of the Beijing-Tianjin-Hebei region, the main focus is on relieving Beijing of functions nonessential to its role as the capital. This approach drives the coordinated development of the region. At present, the CPC Beijing Municipal Committee, Beijing Municipal People's Congress, Beijing Municipal Committee of the Chinese People's Political Consultative Conference, Beijing Municipal People's Government, and more than 70 municipal government departments moved their offices to Beijing's sub-center, and nearly 30,000 personnel have moved to work there. Key municipal infrastructure in the start-up area in Xiong'an New Area has been completed and put into use. The first batch of universities, hospitals, and headquarters of China's central SOEs, which relocated from Beijing to Xiong'an New Area, are rapidly developing their new facilities.
Regarding the development of the Yangtze River Economic Belt, provinces and cities along the river have focused on jointly protecting the environment rather than large-scale development. They've systematically addressed sewage, garbage, chemical and agricultural non-point source pollution. The 10-year fishing ban is showing results, with the Yangtze's main channel achieving Grade II water quality for four consecutive years.
In terms of the construction of the Guangdong-Hong Kong-Macao GBA, convenient policies such as "Hong Kong Vehicles Heading North" and "Macao Vehicles Heading North" have been implemented more quickly. Major open cooperation platforms such as Hengqin, Qianhai, Hetao and Nansha have become more vibrant. Shopping trips to Shenzhen and Zhuhai have grown popular among Hong Kong and Macao residents.
Regarding the integrated development of the Yangtze River Delta, the combined GDP of Jiangsu, Anhui Zhejiang, and Shanghai remains about one-fourth of the national total. The industrial scale of integrated circuits, biomedicine and artificial intelligence accounts for three-fifths, one-third and one-third of China's total, respectively. The output of new energy vehicles accounts for two-fifths of the national total and one-fourth of the global total. The Yangtze River Delta has become an important engine of economic growth and a hub of innovation in China.
Hainan has achieved gratifying results in deepening reform, opening up across the board and building a free trade port.
In the Yellow River basin, efforts toward ecological conservation and high-quality development have shown notable progress. Ningxia Hui autonomous region has accelerated the construction of its pilot zone for ecological protection and high-quality development. Thanks to these efforts, the Yellow River's source again displays its "Thousand Lakes" beauty. The main channel of the Yellow River has maintained Grade II water quality for two consecutive years and has flowed continuously for 24 consecutive years. These achievements are remarkable.
Moving forward, the NDRC will speed up the implementation of issued policies and continue to plan and improve regional development strategies. We'll focus on implementation according to new circumstances and requirements, supporting all regions to better leverage their common and individual advantages. We aim to promote the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao GBA and other regions as drivers of high-quality development. We'll optimize systems and mechanisms for ecological protection and high-quality development in the Yangtze River Economic Belt and Yellow River basin. We will advance the high-standard, high-quality construction of Xiong'an New Area, accelerate Hainan Free Trade Port's development and cultivate a regional economic layout characterized by complementary advantages and high-quality development.
That's all I have to say. Thank you.
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Shou Xiaoli:
There is great interest in development and reform work, and several reporters still have their hands raised. Due to time constraints, we'll take one last question.
ThePaper.cn:
How do you view the role of fixed asset investment in promoting high-quality development in recent years? What has the investment situation been like this year? What measures will be taken next to further expand effective investment? Thank you.
Zhao Chenxin:
Thank you for your questions; let me address them. I understand that your questions concern investment efforts, the investment situation and the role of government investment. We have always said that investment is the demand of the present and the supply of the future. In recent years, investment has played a very crucial role in stabilizing growth, adjusting structures, fostering new dynamics and preventing risks. Over the past decade, the total capital formation within China has contributed, on average, more than 40% to economic growth. Under considerable pressure of an economic downturn, it is even more important to leverage the key role of investment.
I will take this opportunity to also introduce the situation of government investment. Government investment plays a very important role in driving and amplifying effective investment, and it is also an important approach for us to address deficiencies, strengthen weak areas, solve difficult problems and handle practical issues. Let me lay out the specifics for you.
First, we have promoted projects that can help achieve strategic goals. The CPC Central Committee and the State Council have arranged a series of strategic tasks for high-quality development, involving some projects that are difficult to implement with social investment alone. For example, major projects such as power grids, high-speed railways, expressways and water conservancy projects span regions, river basins and fields. They require substantial funding, with coordination being very challenging. Their implementation can only be achieved through the driving and amplifying effects of government investment. Furthermore, although projects like national parks and those for green, low-carbon development have good social and ecological benefits, their direct economic benefits are not obvious, thus requiring government investment to guide and drive their implementation.
Second, we have promoted projects that improve people's welfare. From practice, it is evident that government investment plays a significant role in creating jobs, providing wage income and thereby driving consumption. For example, some journalists here have reported on the "work-for-relief" projects, where labor remuneration now accounts for more than 30% of funds earmarked for such investment projects in the central government budget; in 2023, the "work-for-relief" initiatives helped 2.53 million people gain employment, with an average income increase of over 14,000 yuan per person. Additionally, government investment has significantly supported a large number of projects in urban renewal, pollution prevention and control, elderly care, childcare, medical and health care as well as other areas related to people's livelihoods.
Third, we have promoted projects that solidify the foundation of security. The CPC Central Committee and the State Council have made significant arrangements concerning food security, energy security, and the security and stability of industrial and supply chains. Major projects such as high-standard cropland development and energy resource reserves require continuous, stable and large-scale financial investment. Government investment is indispensable in these areas. Government investment has played a very important role in expanding effective investment and has promoted high-quality development through the implementation of these projects.
Regarding the current investment situation that you are concerned about, investment has achieved stable growth, structural optimization and improved quality and efficiency this year. In the first half of the year, fixed asset investment increased by 3.9% year on year, with manufacturing investment growing by 9.5% and private investment rebounding to account for 51.9% of total investments. Moving forward, the NDRC will work with relevant parties to continuously enhance investment vitality through reform and innovation.
On one hand, we will fully leverage the driving and amplifying effects of government investment. We will establish a long-term mechanism for government investment to support the development of major projects that are of fundamental and far-reaching importance and serve the public interest, to coordinate the use of various types of government investment and to focus on guiding all parties to accelerate the cultivation of new development drivers. Specifically, we will make good use of ultra-long-term special government bonds and ensure the high-quality development of initiatives for implementing major national strategies and building up security capacity in key areas. We will effectively utilize the guiding and driving role of investments from the central government budget, accelerate the development of local government special bond projects, ensure the successful implementation of projects supported by funds raised from additional government bonds in 2023, promote the implementation of the 102 major projects under the 14th Five-Year Plan, and move faster to see more projects launched.
On the other hand, we will effectively mobilize the enthusiasm of private investment. We will improve mechanisms to stimulate and facilitate social capital investment, thereby driving the formation of a market-led mechanism for ensuring self-sustaining growth of effective investment. Specifically, we will make good use of the interdepartmental joint meeting mechanism to promote the development and expansion of the private economy, to implement a series of measures to encourage private investment, and to better implement the new mechanisms for government and social capital cooperation, continuously optimizing the investment environment and ensuring that private capital is confident, willing and able to invest. We will continue to recommend and introduce high-quality projects to private capital, a task that has been ongoing for some time, and will further promote the fair opening of competitive areas in infrastructure to business entities as well as support social capital in increasing investments in areas such as equipment upgrades, thus continuously expanding the investment space and allowing private investment to have choices as well as be able to invest effectively.
In short, we will maintain the current positive trends with stable investment growth, structural optimization, and quality and efficiency improvements, continuously leveraging the key role of effective investment and promoting high-quality development.
That's all for my answer, thank you.
Shou Xiaoli:
Thank you, Mr. Zhao, thank you to all the speakers, and thank you to all the journalists. That concludes today's press conference.
Translated and edited by Wang Yiming, Wang Qian, Liu Jianing, Ma Yujia, Mi Xingang, Wang Yanfang, Gong Yingchun, Huang Shan, Zhu Bochen, Zhou Jing, Wang Wei, Liao Jiaxin, Yan Bin, Li Huiru, Zhang Rui, Zhang Junmian, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.
