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Speakers:

Mr. Zheng Shanjie, chairman of the National Development and Reform Commission (NDRC)

Mr. Liu Sushe, vice chairman of the NDRC

Mr. Zhao Chenxin, vice chairman of the NDRC

Mr. Li Chunlin, vice chairman of the NDRC

Ms. Zheng Bei, vice chairwoman 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:

Oct. 8, 2024 

Shou Xiaoli:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we are very pleased to invite Mr. Zheng Shanjie, chairman of the National Development and Reform Commission (NDRC), to brief you on the systematic implementation of a package of incremental policies designed to solidly promote economic growth, structural optimization and sustained development momentum. Also present today are NDRC vice chairpersons Mr. Liu Sushe, Mr. Zhao Chenxin, Mr. Li Chunlin and Ms. Zheng Bei. Now, I will give the floor to Mr. Zheng for his introduction.

Zheng Shanjie:

Friends from the media, good morning. I am very glad to attend today's press conference.

On Sept. 26, the Political Bureau of the Communist Party of China (CPC) Central Committee held a meeting to analyze and study the current economic situation and make further arrangements regarding economic work, introducing a package of incremental policies. This fully demonstrates the significant importance that the CPC Central Committee with Comrade Xi Jinping at its core places on economic work, and fully showcases the confidence and determination to promote sustained economic recovery and growth. On Sept. 29, the State Council held an executive meeting, which made arrangements for the implementation of the package of incremental policies.

Today, I would like to take this opportunity to brief you on the subject of the comprehensive implementation of the decisions and arrangements of the CPC Central Committee and the State Council, systematically implementing a package of incremental policies. Following that, my colleagues and I will answer questions you may have. Let me first update you on two aspects:

First, regarding the current economic situation.

We believe that to accurately grasp the actual situation of China's economy, it is necessary to be comprehensive, objective and calm. We need to observe the macro picture and development trends, and to consider both the current situation and future prospects.

From a macro perspective, China's economy is generally stable and making steady progress, despite facing an increasingly complex domestic and international environment. New quality productive forces are forming more rapidly, the people's well-being is continuously being strengthened, and new progress has been made in preventing and resolving risks in key areas. High-quality development is being deeply advanced, and overall social stability has been maintained.

We can succinctly summarize the situation with two keywords: "stability" and "progress." Stability is primarily evident in the overall economy. On the supply side, agricultural production remains stable, with another bumper harvest expected this year. Industrial growth has been relatively robust, with the value added by industrial enterprises above designated size increasing by 5.8% year on year in the first eight months. Key drivers, such as the output of new energy vehicles and integrated circuits, grew by 31.3% and 26.6%, respectively. The service sector has maintained a stable growth momentum, with the index of service production (ISP) increasing by 4.9%. Among these, the ISP for information transmission, software and information technology services grew by 11.9%, while the ISP for leasing and business services increased by 7.7%. In terms of market demand, investment and consumption continue to grow. Manufacturing investment, which is crucial for long-term prospects, and supports and benefits sustainable development, increased by 9.1%, outpacing overall investment by 5.7 percentage points. Efforts to promote large-scale equipment renewals and trade-ins of consumer goods are yielding outstanding results, with a relatively fast rebound in automobile and home appliance sales recently. It is expected that in September, retail sales of passenger cars by major carmakers will increase by 10% compared to the previous month. In the first eight months, exports priced in RMB grew by 6.9%. Regarding employment and prices, the employment situation remained stable, with 9.44 million new urban jobs added in the first eight months, which is an increase of 200,000 compared to the same period last year. The consumer price index (CPI) rose by 0.2% year on year, with a 0.6% increase in August alone. Progress is mainly reflected in structural optimization. New drivers of growth are accelerating their growth and expansion, with high-tech manufacturing and equipment manufacturing value-added increasing by 8.9% and 7.6%, respectively, in the first eight months. The structure of the three major demands is becoming more optimized, and continuous improvements and breakthroughs are being made in some key areas. The advancement of new urbanization and coordinated regional development is being further promoted, with major economically developed provinces effectively shouldering greater responsibilities.

While acknowledging the achievements, successes and highlights of economic development, we are also confronting existing difficulties and problems. On one hand, the external environment has become increasingly complex and severe. According to the latest forecast by the International Monetary Fund (IMF), global economic growth this year is projected to be 3.2%, which is lower than last year. Major economies are experiencing weak growth momentum and heavy debt burdens. Recently, there has been a general trend of interest rate cuts, leading to significant volatility in international markets, increased global trade protectionism, and a rise in uncertain and unstable factors. All these could adversely impact China through trade, investment and financial channels. On the other hand, domestic economic downward pressure has increased, with fluctuations in main economic indicators such as industry, investment and consumption since the third quarter. Some industries are experiencing intense internal competition, while some enterprises are still not adapting to optimization, upgrading or transformational development changes. Additionally, some are increasing production without increasing revenue or profits, others are finding production and operations quite challenging, and there remain considerable risks and hidden dangers in some areas.

Upon comprehensive analysis, and from the perspective of development trends, the fundamentals of the Chinese economy have remained unchanged. Favorable conditions such as large market potential and strong economic resilience persist. With the continued release of effects from existing policies, especially with the introduction and implementation of incremental policies, recent market expectations have significantly improved. The purchasing managers' index (PMI) for manufacturing has rebounded quickly, the stock market is warming up and rising, and market consumption during the National Day holiday was robust. We are fully confident in achieving the annual goals for economic and social development and in maintaining sustained, stable and healthy development of the economy and society.

Second, regarding considerations for implementing the package of incremental policies.

In response to new situations and issues in the current economic operations, the CPC Central Committee and the State Council have made sound decisions and acted decisively. While effectively implementing existing policies, they have focused on five areas: intensifying countercyclical adjustments of macro policies, expanding effective domestic demand, increasing assistance and support for enterprises, reversing the downturn of the real estate market and stabilizing it, and boosting the capital market. A package of incremental policies will be robustly introduced to promote sustained economic recovery and growth. We are not only focused on addressing the immediate difficulties and problems, but also pay more attention to solving significant issues in medium- and long-term economic development. This includes strengthening efforts to build a strong foundation, ensuring long-term benefits and sustainability, and making steady progress to promote high-quality development.

The package of incremental policies reflects three areas of greater emphasis: improving the quality of economic development, supporting the healthy development of the real economy and business entities, and coordinating high-quality development with high-level security. The planning and formulation of these policies also exhibits "four persistences." First is the persistence in goal orientation, anchoring the annual goals and tasks, making full use of policy space, and striving to stimulate greater development potential. Second is the persistence in problem orientation, focusing on business entities and societal concerns, addressing the difficulties in economic and social development as well as in enterprises' production and operations, and adopting more targeted measures. Third is the persistence in systematic policy implementation, coordinating across fiscal, financial, consumption, investment, real estate, stock market, employment and social welfare policies to enhance the consistency of macroeconomic policies and strengthen policy synergy. Fourth is the persistence in combining short- and long-term strategies, coordinating the transition of policies from this year to next to promote sustained, stable and healthy economic development and to ensure a successful conclusion of the 14th Five-Year Plan.

The implementation of an incremental policy package involves comprehensive and systematic work that should be precisely targeted to enhance effectiveness and sustainability. Specifically, there are five targeted approaches. First, to cope with downward economic pressure, we will advance macro policies for countercyclical adjustments through concerted and continued efforts. Second, to address issues such as insufficiency in effective domestic demand, we will focus on improving people's well-being and promoting consumption when implementing incremental policies for boosting domestic demand, effectively driving growth through making investments. Third, in view of the current difficulties in the production and operation of some enterprises, we will increase assistance and practically improve the business environment to help them overcome these challenges. Fourth, eyeing the weak real estate market, we will introduce comprehensive policies and measures to stabilize the market and avoid further decline. Fifth, in response to the stock market's previous downward spiral, we will launch effective measures to boost the capital market.

Next, we will work with various departments and localities to fully and quickly implement decisions and arrangements made by the CPC Central Committee and the State Council, implementing an incremental policy package through a holistic approach to create a policy synergy. We will solve issues that hinder the implementation of policies to solidly promote economic growth, structural optimization and sustained momentum for development. Our goal is for the policies to take effect within the year as well as to ensure the successful conclusion of the 14th five-year plan period in the coming year and a good start for the 15th five-year plan period. That's all for my briefing. Thank you. 

Shou Xiaoli:

Thank you, Mr. Zheng. The floor is now open for questions. Please first identify the news agency you represent. Now, you may raise your hands to ask questions.

CCTV:

Hello, Mr. Zheng. Your opening remarks mentioned implementing the incremental policy package that was decided on at a meeting of the Political Bureau of the CPC Central Committee, which entails coordination between the fields of fiscal, finance, consumption and investment. Could you please elaborate on the specific measures that will be taken to fulfil this policy package? Thank you. 

Zheng Shanjie:

Thank you for the question. This policy package involves systematic and comprehensive work and has recently gained special attention. I just explained our primary approaches to implementing the incremental policy package. Now, I will give detail on the specific measures for systematically implementing these policies. There are mainly five aspects. 

I. Implementing macro policies with increased effort and improved effectiveness.

First is to strengthen macro policies for countercyclical adjustments. We will enhance the coordination and integration of macro policies in the fields of fiscal, tax revenue, monetary, finance, investment, consumption and income distribution. We will boost the coordination and innovation of policy tools, ensure the timeliness, intensity and effectiveness of policy implementation as well as enact a combination of policies to create a multiplied effect. We will ensure necessary fiscal spending and accelerate spending to significantly boost economic development. We will offer more support to local authorities with debt swaps so as to defuse related risks. We will lower the reserve requirement ratio (RRR), implement significant interest rate cuts and support large state-owned commercial banks in replenishing the core tier-1 capital, thus improving the financial environment for the investment and financing of business entities and for the implementation of macro policies. Recently, we have released policies to lower the RRR and interest rates. Other financial policies are also on the way. 

Second is to accelerate the implementation of major reform measures. The third plenary session of the 20th CPC Central Committee specified more than 300 important reform measures, with related tasks' progressions being gradual and orderly. We will quickly launch a series of reform measures which are ready for implementation to bring tangible and accessible benefits that will contribute to the sustained, healthy development of the economy. For example, we will formulate guidelines for building a unified national market, issue new versions of negative lists for market access, establish mechanisms to boost investment in future industries, improve systems for deepening integration of the real and digital economies, and release opinions on improving the social credit system. Meanwhile, we will increase efforts in attracting and stabilizing investments, seize the initiative by expanding opening up, revise and expand the indexes of industries that we encourage foreign businesses to invest in, launch major projects with foreign investments and further ease visa-free transit policies. 

Third is to improve the consistency of macro policy orientation. We will make good use of related assessment mechanisms to improve the consistency and compatibility of policies from various fields regarding the objectives, tools, intensity, timing and pace of implementation. Before a policy is released, it should go through an assessment to verify consistency as well as thorough research and appraisal. When a policy is being executed or adjusted, the consistency of macro policy orientation should be maintained. After a policy has been implemented, we will review and evaluate its impact in a timely manner. Through all these processes, any inconsistency in macro policy orientation will trigger prompt adjustments or temporary suspension. 

II. Further expanding domestic demand.

In terms of consumption, the key is to combine the promotion of consumption with improved well-being. We aim to increase the income of middle- and low-income groups while taking actions to boost consumption. This involves three aspects of work. First is to reinforce support for special groups. Before National Day, we handed out one-time living allowances to people with special difficulties and orphans. We will increase standards for student subsidies, expand the coverage of policies as well as raise the ceiling of national student loans for college and university students and post graduates. We will also strive to lower loan interests. Second is to continue expanding bulk consumption by promoting large-scale equipment renewals and consumer good trade-ins, which is conducive to releasing demand potential, conserving energy and reducing carbon emissions so as to promote a comprehensive green transformation. Currently, a wide range of detailed measures facilitating consumer good trade-ins have been issued, related funds have been fully allocated and comprehensive policies have been put into place. Retail sales of passenger vehicles have rebounded significantly. Sales of home appliances have ceased to decline and have started to increase. We will intensify the implementation of related policies to further increase the consumption of goods. Third, we will boost the use of services such as care for children and the elderly, two areas of wide public concern. We will support and regulate non-governmental actors with developing related industries, quickly refine the policy system for boosting the birth rate and improve basic public services for childbirth and pediatric medical care. We will cultivate new consumption forms such as digital and green consumption and better meet medium-to-high-end market demands by enhancing supply-side adaptation.

In terms of investments, the focus should be on expanding effective investments to quickly make concrete progress. This involves three aspects. First, we will make full and good use of all kinds of funds that have been allocated this year. For now, a total of 700 billion yuan in investments from the central budget have been fully allocated. The one trillion yuan in ultra-long special treasury bonds, earmarked for implementing major national strategies and building up security capacity in key areas, as well as promoting large-scale equipment renewals and consumer good trade-ins, has been completely channeled to various projects and localities in order to accelerate project progress and fund appropriation. We will accelerate the issuance and use of special-purpose bonds by local governments to facilitate the construction of projects. Second, we will prepare and release in advance the project list for major national strategies and building up security capacity in key areas as well as the investment plan within the central budget for next year. Analysis shows that incremental funds are in high demand in the fields of continued infrastructure construction, granting permanent urban residency to eligible people who have moved to cities from rural areas, high-standard cropland development, underground pipeline construction and urban renewal projects. In the next year, we will continue to issue ultra-long special treasury bonds and optimize their use to strengthen support for implementing major national strategies and building up security capacity in key areas. Before the end of this year, we will release the 100-billion-yuan investment plan within central budget and the 100-billion-yuan project list for implementing major national strategies and building up security capacity in key areas for the coming year, with the aim to support different localities with accelerating preliminary work and starting construction ahead of schedule. Meanwhile, an important effort that is related to this is to accelerate the promotion of people-oriented new urbanization. Third, we will optimize and implement major investment policies. We will step up research on properly expanding the scope of use for funds raised from special-purpose bonds, permitting a greater share of such funds to be used as capital in more sectors and on a larger scale. We will release, at the earliest possible date, specific reform measures to appropriately expand the scope of use for funds raised from the sale of local government special-purpose bonds. We will further motivate non-government investors, effectively implement a new mechanism for cooperation between government and private capital to encourage private investment in new types of infrastructure. 

III. Strengthening support for businesses.

First, we will standardize law enforcement and regulations related to enterprises. We will further regulate administrative law enforcement that is related to businesses, adopting a more inclusive, prudent regulatory approach and a more flexible approach toward law enforcement. Law enforcement must not cross regional boundaries in violation of regulations, nor should it be conducted for profit. Penalties, inspections and seizures must strictly follow legal procedures. We will also promptly issue warnings to regions where penalty and confiscatory income shows abnormal growth and will conduct supervision if necessary. Meanwhile, we are expediting efforts to make a law on boosting the private sector to foster a more favorable environment for non-public sector development.

Second, we will make clear the follow-up arrangements of interim policies in advance. Based on our review, by the end of the year, certain measures, such as supportive tax and fee policies, unemployment insurance related policies to support businesses and stabilize employment, and skill development subsidies, will expire. Relevant departments will determine, based on research and evaluation, whether to extend these policies and for how long. Policies inducive to business operations and healthy development will only be extended, not limited.

Third, we will ensure the proper allocation of production factors. The policy of loan renewals without repayment of principal, previously applicable to small and micro-sized enterprises, has already been extended to medium-sized enterprises. More enterprises will benefit from this policy. Recently, the NDRC and the National Financial Regulatory Administration have jointly established a coordination mechanism to support financing for small and micro-sized enterprises, guiding financial institutions to provide financing support based on market-oriented principles and aiming to ensure that all eligible loans are granted. Meanwhile, we are exploring the possibility of separately managing the energy consumption of certain eligible major projects under the 14th Five-Year Plan and encourage different localities to increase renewable energy consumption by purchasing green electricity and renewable energy certificates.

IV. Promoting the stabilization and recovery of the property market. 

Systematic and comprehensive measures, including strictly controlling new commercial housing developments, optimizing existing housing projects and improving construction quality, will be implemented. We will intensify the use of the "whitelist" policy for housing projects eligible for loans, utilize special-purpose bonds to revitalize idle land and adjust restrictions related to purchasing housing in order to stimulate demand of both first-time homebuyers and those seeking to improve their living conditions. Additionally, we will accelerate the sale of existing unsold homes, lower interest rates on existing housing loans, speed up improvements to policies related to taxation, land and financing, as well as promote the establishment of a new model for real estate development. Policies to lower interest rates on existing housing loans have already been introduced. Some cities have fully lifted restrictions on purchasing housing, while others have further reduced areas of purchasing restrictions or have eased purchasing restrictions. Other policies are actively being planned and implemented. 

V. Striving to bolster the capital market. 

Relevant departments will implement a series of strong and effective measures to attract medium and long-term capital into the market, remove the obstacles for social security, insurance and wealth management funds to invest in the capital market, support mergers, acquisitions and reorganizations of listed companies, and steadily advance the reform of mutual funds. Additionally, we will explore and introduce policies to protect medium and small-sized investors. All of these policies are being accelerated.

Next, we will closely monitor the situation, evaluate the effectiveness of policies and explore new incremental policies in a timely manner. We will conduct further policy research, reserve additional policy options and maintain consistency between this year's and next year's policies and government efforts, solidly promoting economic growth, structural optimization and sustained momentum of development. Thank you. 

Cover News:

Mr. Zheng just mentioned the need to expand effective investments. Could you elaborate on the follow-up policies and measures that will be implemented to ensure timely investments and concrete results? Thank you.

Zheng Shanjie:

I would like to invite my colleague Mr. Liu to answer this question.

Liu Sushe:

Thank you for your question. Since the start of this year, we have been focusing on key sectors and critical areas, leveraging government investment's guiding and driving role to fully stimulate social investment and expand effective investments. Let me share some data to give you an overview of this year's situation.

Almost all of the nearly 6 trillion yuan of government investment for this year has been allocated to specific projects, which are now progressing to yield tangible results. All of the 700 billion yuan of central government budgetary investment for this year has been assigned to specific projects, with 58% of them already in the works. Out of the 1 trillion yuan ultra-long special treasury bonds, a total of 700 billion yuan has been allocated for implementing national key strategies and building up security capacity in key areas (two major initiatives), with 50% of related projects having commenced. As for the 3.12 trillion yuan in special-purpose local government bonds for project construction this year, by the end of September, 2.83 trillion yuan, or 90%, had been issued, with 85% of the projects already started. The 1 trillion yuan in treasury bonds issued in the fourth quarter of last year for post-disaster recovery and reconstruction and improvement of disaster prevention, mitigation and relief capabilities saw all projects already begin as of the end of June this year, with 770 billion yuan invested so far. On the private investment front, we have promoted 1,635 major projects to private capital this year, of which 441 have successfully attracted private investment, amounting to a total investment of 344.8 billion yuan. Progress has also been made in involving private capital in major infrastructure projects, such as nuclear power and railways. Additionally, we have selected the first batch of 189 national key private investment projects and helped coordinate and address major issues like ensuring financial factors. We have also standardized the new mechanism for cooperation between government and social capital, focusing on user-fee models, completely adopting the franchise model and prioritizing participation of private enterprises. Demonstration projects with 141 billion yuan of investment have already been made public.

According to directives from a meeting of the Political Bureau of the CPC Central Committee and a State Council executive meeting, we will next collaborate with relevant departments to coordinate existing and incremental policies that aim to expand effective investment, ensuring stable investment growth. I will outline the policy implementation going forward in five aspects:

First, we will speed up the release of both the project list of 2025 for the two major initiatives and the investment plans under the central government budget. Providing support for the two major initiatives is a strategic decision of the CPC Central Committee with the aim to strengthen the nation and achieve national rejuvenation. The issuance of ultra-long special treasury bonds will continue in 2025, and we will optimize the allocation of these funds, ensuring strong support for the two major initiatives. Currently, the NDRC, in coordination with relevant departments and local governments, is preparing a batch of major programs for the two major initiatives in a top-down manner while accelerating “soft construction” like innovations in policy, planning and institutions. The continuous improvement of investment mechanisms and investment efficiency and the coordination of “hard investment” with “soft construction” are all contributing to the goals of the two major initiatives. Investment plans under the central government budget will continue to support foundational, public welfare and long-term projects, accelerating efforts to address shortcomings during China's modernization. Issuing project lists and investment plans in advance helps to speed up preliminary work and initiate project implementation. To this end, as Mr. Zheng just mentioned, by the end of this month, we plan to issue a 100-billion-yuan project list for the two major initiatives and a 100-billion-yuan central government budget investment plan, in accordance with procedures. The projects involved have been carefully selected by the NDRC and relevant government departments. These projects meet investment criteria, have already completed preliminary preparations and are with right conditions, allowing for concrete results within the year. 

Second, we will increase efforts to advance the 102 major projects outlined in the 14th Five-Year Plan. Of the 5,100 specific projects involved, 92% have already started construction or been completed. Next, we will further enhance coordination to ensure that all those involved fully shoulder their share of responsibilities. By strengthening financial support and factor resource supply, we will accelerate the start of the remaining 409 specific projects to ensure the successful completion of all 102 major projects outlined in the 14th Five-Year Plan by the end of next year.

Third, we will ensure the efficient use of local government special bonds. On the one hand, we will urge relevant local governments to issue the remaining 290 billion yuan in special bonds allocated for this year by the end of October. At the same time, we will accelerate both the construction of projects funded by the issued bonds and the use of funds, achieving more tangible progress. On the other hand, to address prominent issues in the issuance, use, and management of local government special bonds, the NDRC and Ministry of Finance are exploring ways to expand the scope of funds raised from bond sales. This includes allowing a larger share of these funds to be used as capital across more sectors and on a broader scale. We are also carrying out studies, launching trials to give local governments more autonomy in project review, and implementing "green lanes" for ongoing projects. New measures to improve the management of local government special bonds will be introduced as soon as possible.

Fourth, we will strengthen the management of government investment projects at all stages. We'll enhance project coordination through online monitoring, on-site supervision and inspections, guiding local authorities and departments in implementing various government investment projects and accelerating their progress. Simultaneously, we'll intensify efforts to reform the investment review and approval system and swiftly develop policies to improve government investment decision-making mechanisms and raise investment efficiency.

Fifth, we will support and encourage the healthy development of private investment. We'll accelerate improvements to long-term mechanisms for private enterprises' participation in major national projects, focusing on promoting high-quality projects to encourage more private capital in major infrastructure projects like railways, energy and water conservation. We'll also expedite the selection of a new list of national key private investment projects. Additionally, we'll regulate and implement a new mechanism for government and private capital cooperation, support eligible private investment projects in issuing infrastructure REITs, and deepen trials allowing banks to participate in combined debt-equity investments.

Thank you.

Lianhe Zaobao:

How does the Chinese government plan to boost private investors' confidence and attract more foreign investment? What measures will you take to further improve the business environment? Thank you.

Zheng Shanjie:

Thank you. I'd like to invite Ms. Zheng Bei to answer these questions.

Zheng Bei:

I'll answer these questions. This is an important issue. The Sept. 26 CPC Central Committee Political Bureau meeting called for intensifying efforts to regulate business-related law enforcement and oversight, enhance the market-oriented, law-based, and internationalized business environment, and assist enterprises in overcoming challenges. The NDRC will adopt a problem-oriented approach and work continuously with relevant departments to improve the business environment. We'll make further efforts mainly in three aspects.

First, we'll further improve the legal framework involving enterprises. We'll accelerate legislation promoting the private sector to ensure equal treatment of state-owned and private enterprises by law. We'll also revise the Public Bidding Law to remove local protectionism and ensure fair market competition for all ownership types. Additionally, we'll facilitate revising regulations on payments to SMEs to secure timely payments from government offices, public institutions, and large enterprises. We'll also move faster to abolish laws, regulations, and policies that treat enterprises unfairly, removing institutional obstacles to fair competition.

Second, we'll further regulate law enforcement and oversight involving enterprises. We'll refine standards on administrative discretion, adopting more accommodative and prudential regulation and soft law enforcement to avoid or minimize the impact on normal business activities. We'll regulate cross-regional administrative enforcement by establishing an assistance system to prevent selective and profit-driven law enforcement. We'll also strengthen oversight over administrative law enforcement, taking resolute steps against arbitrary charges, fines, and quotas and holding those responsible accountable.

Third, we will further help enterprises address their difficulties. We will fully leverage the inter-ministerial joint meeting mechanism to promote the growth and expansion of the private sector, as well as build and make the best use of the comprehensive service platform for developing the private economy. We will strengthen the multi-tier regular exchange mechanism at national, provincial, city and county levels so as to listen to the opinions and suggestions of enterprises and solve pressing difficulties and problems that concern them most. For example, to address enterprises' primary financing concerns, we've expanded policies allowing loan renewals without principal repayment through the inter-ministerial joint meeting mechanism. The scope has been expanded for a limited time from micro- and small-sized enterprises to medium-sized enterprises in sci-tech industries, manufacturing and agriculture, raising loan renewal efficiency and reducing the cost of funds.

As Mr. Zheng noted, we'll implement five measures to attract more foreign investment: intensifying efforts to attract and stabilize investments, further expanding opening-up, launching more major foreign investment projects, encouraging foreign enterprises to deepen their presence in China, and supporting foreign businesses in succeeding here. Thank you.

Reuters:

What's the expected scale of this policy package and its goal? Will China reach its 5% growth target for this year? Will the current deflationary pressure on the economy ease to some extent? Thank you.

Zheng Shanjie:

Thank you. I would like to invite Mr. Zhao Chenxin to answer these questions.

Zhao Chenxin: 

Thank you to the journalist from Reuters for their questions. Mr. Zheng's previous briefing should have all the information you need. For example, we've prioritized "three areas" and have followed "four principles" in formulating this package of incremental policies. By "three areas," I mean that we have focused on ensuring the quality of economic development, supporting a sound development with the real economy and business entities as well as promoting high-quality development and high-level security in a coordinated manner. By "four principles," I mean that we have ensured that policies are target-oriented, problem-oriented, systematic and balanced while also considering both short-term and long-terms goals. There are many key words in Mr. Zheng's briefing. For instance, the package of incremental policies is designed to be comprehensive and systematic. In this sentence, "comprehensive" and "systematic" are two words central to understanding the policies. Furthermore, when it comes to implementation, we need to ensure that the policies are implemented in a targeted, precise, effective and sustainable manner. Mr. Zheng has offered a detailed explanation for all this information. Focusing on these core elements will be helpful for your understanding of the package of incremental policies. The goal of this package of incremental policies is to stimulate society as a whole's enthusiasm, initiative and creativity in order to promote high-quality development so as to boost economic recovery.

In the first half of this year, China's economy grew by 5%, with employment and price levels remaining basically stable. Today is October 8 and the first three quarters have just passed. Our data suggests that China's economy has maintained overall stability and progressive growth. As various decisions and arrangements made by the CPC Central Committee and the State Council are implemented and the effects of this package of incremental policies continue to manifest, it is expected that vitality and driving forces for development will be further unleashed, market confidence will be further enhanced and the foundations for high-quality development and stable economic performance will be further consolidated. We have the conditions, capabilities and confidence to achieve this year's targets with economic and social development. Thank you. 

Bloomberg:  

I have two questions, actually. My first question is about the labor market. With the changes that have been the focus of the government this year on moving to high-quality growth, there has been a lot of problems in the labor market, including in getting young people jobs. The youth jobless rate has risen to 18% in August. How can the government ensure full employment as construction and other labor-intensive industries decline and are replaced with mostly automated industries, such as high-tech manufacturing? And my second question is following on what has been announced today. You said that you wanted to ensure all the special local government bonds would be sold by the end of October. Does that mean you plan to sell new bonds in November and December when there will be no bonds for sale? Thank you. 

Zheng Shanjie:

Thank you to Bloomberg's journalist for their questions. I'd like to invite Mr. Li to answer the question regarding employment.

Li Chunlin:

Thank you for your questions. Mr. Zheng touched upon the issue of employment in his previous briefing on the package of incremental policies. Ensuring high-quality and full employment is one of the primary objectives that the package of incremental policies aims to achieve through its prioritized "three areas."

This year, a series of policies aimed at promoting economic growth and employment have taken effect, leading to a generally stable employment situation. In the first eight months of this year, the urban surveyed unemployment rate averaged at 5.2%, down 0.1 percentage points year on year. The labor force shifting from low-productivity sectors to high-productivity sectors is a very normal phenomenon. While technological progress is promoting economic transformation and industrial upgrading, it is also fostering new professions and creating new job opportunities. For example, the rapid development of the low-altitude economy has led to the emergence of drone operators as a new profession. Statistics show that China is facing a shortage of 1 million people in this position. Another example is the new energy vehicle maintenance industry. Currently, fewer than 100,000 people are working in this sector. Projections indicate that the talent gap for professionals in maintenance and R&D could reach 1.03 million by 2025, providing ample opportunities for employment.

The Political Bureau of CPC Central Committee held a meeting on Sept. 26, making a series of arrangements to ensure employment. Development, especially high-quality development, is essential for generating new employment opportunities. Going forward, the NDRC will intensify our endeavors to implement the employment-first strategy as well as strengthen macro policies in a coordinated manner. We will help people foster a healthy perspective toward employment and promote employment through economic growth. Based on Mr. Zheng's briefing, I'd like to share four more items of information:

First, we will expand effective demand and foster new growth drivers for employment. We'll give full play to the leading role of the central budget investment and encourage private investment with various measures. Mr. Zheng and Ms. Zheng just now also both mentioned private investment. We'll step up efforts to implement major national strategies, build up security capacity in key areas and implement programs to promote large-scale equipment upgrades and consumer good trade-ins. We'll ensure more support for programs that provide more jobs. For example, although the specific figures for this year haven't been released yet, last year the NDRC allocated 10.9 billion yuan from the central government budget for work relief programs. This investment facilitated as many as 290,000 low-income individuals in rural areas to find jobs locally or near their homes, boosting their per capita income to 10,000 yuan. This initiative played a significant role in creating a substantial job market. As such, a significant number of jobs have been created thanks to major national strategies, building up security capacity in key areas as well as the program to promote large-scale equipment upgrades and consumer good trade-ins. 

Second, we will focus on enhancing job creation capacity for emerging industries. We'll ramp up efforts to develop new quality productive forces that are aligned with local conditions and foster strategic emerging and future-oriented sectors, including next-generation information technology, energy conservation and environmental protection, biotechnology, new materials, and new energy. By doing so, we're aiming to create more technical and professional positions. 

Third, we will create more job opportunities in the life service industry. We'll promote service consumption in an innovative manner and create new demand for consumption. We'll advance the silver economy. Given China's increasingly aging population, it is crucial to fully leverage the employment potential within the social services industry such as elder care, housekeeping, childcare and logistics. Take the housekeeping sector as an example, while China's domestic service industry currently has around 30 million employees, the market actually demands as many as 50 million people, especially high-quality and highly-skilled domestic service workers.

Fourth, we'll give full play to the role of vocational education and skills training with promoting employment. We will leverage various resources to increase investment in infrastructure used for skills training and assist local governments in establishing platforms, such as public training centers and those that bring together industry and education. We will tailor our training programs to meet enterprises' specific employment demands and provide order-based, targeted and project-oriented training to workers, enabling them to use their skills to secure jobs and increase their incomes. That's all for my response. Thank you. 

Zheng Shanjie:

We're also concerned about the employment issue you mentioned. As Mr. Li explained, there are some structural problems in employment: increases and decreases, labor migration, and shortages in some areas. We're taking measures to address these issues. I noticed your question also relates to special-purpose bonds. I'd like to invite Mr. Liu to answer that part.

Liu Sushe:

Regarding the special-purpose bonds question from this reporter, as mentioned in our opening remarks, this year's special-purpose bonds for project construction total 3.12 trillion yuan. By the end of September, 2.83 trillion yuan had been issued, and we're urging local governments to complete the issuance of the remaining 290 billion yuan by the end of this month.

In the next step, our priority is to fully utilize and maximize the effectiveness of special-purpose bonds, ensuring related projects start as soon as possible and deliver tangible benefits. Meanwhile, the NDRC and the Ministry of Finance are developing new measures to improve the management of local government special-purpose bonds. Once introduced, these measures will help special-purpose bonds play an even greater role in boosting investment. That's all I have to add.

Economic Daily:

You mentioned earlier that the package of incremental policies includes a significant demand for additional funds for urban renewal. We understand urban renewal encompasses renovating old residential areas, upgrading underground pipelines, and more. Could you elaborate on the specific support policies in place, especially regarding financing support? Thank you.

Zheng Shanjie:

Thank you for your question. I'd like to invite Mr. Liu to answer it.

Liu Sushe:

Thank you for your question. Currently, China's urban development has entered a stage where both new construction and renewal of existing infrastructure are equally important. Urban renewal and renovation tasks will become increasingly demanding in the coming years. For example, it's estimated that nearly 600,000 kilometers of gas, water supply, sewage, and heating pipelines will need upgrading over the next five years, with a total investment demand of about 4 trillion yuan.

The package of incremental policies clearly emphasizes strengthening key urban renewal projects. Moving forward, we'll coordinate various funding sources, release project lists and investment plans in advance to expedite eligible projects, and establish a sustainable renovation mechanism. We'll actively improve urban infrastructure, quickly address weaknesses, and fully tap into the vast potential of China's new urbanization, creating new drivers for economic growth. Our next steps include:

First, we'll advance urban renewal projects by type and in an orderly manner. Prioritizing tasks based on urgency, we'll focus on eliminating safety hazards in the short term, upgrading aging infrastructure in the mid-term, and enhancing facility functions in the long term. We'll launch a comprehensive urban infrastructure upgrade campaign, prioritizing projects critical to public security and well-being. These include improving underground pipeline networks, renovating old residential communities, revamping urban villages, and enhancing urban transportation infrastructure. We'll also proceed with transforming old neighborhoods and industrial areas, and upgrading urban public services in a well-planned way.

Second, we'll prioritize financing key urban renewal projects in next year's list of projects related to implementing major national strategies and building up security capacity in key areas as well as in the central budgetary investment plan. There's significant funding demand for urban underground pipeline networks, with many projects ready for implementation. We'll focus on supporting these key projects in the next stage. From 2023 to 2024, the NDRC has allocated over 470 billion yuan from the central government budget, additional treasury bonds, and ultra-long special treasury bonds to support urban gas and drainage pipeline renovations and old urban community renewals. Urban renewal will remain a priority for government investment in the coming years, with efforts continuing in 2025. In the two 100-billion-yuan project lists and investment plans, urban renewal accounts for a significant proportion, focusing on gas, water supply, sewage, and heating pipeline construction, especially in densely populated cities and central urban areas. These funds will primarily support ongoing projects and those ready to start in the fourth quarter, addressing critical issues like aging gas pipelines, urban flooding, and water pipe leakage. We'll also increase central government budget investment in renovating old urban residential communities, urban villages, and dilapidated housing. We're exploring the possibility of including urban renewal projects that generate returns, such as renovating old neighborhoods and industrial areas, in local government special-purpose bonds.

Third, we'll actively explore innovative financing models. Urban renewal holds significant market potential, and the scale of investment required is too large for government funding alone. Establishing diversified investment mechanisms and attracting broad participation from private capital is essential. For sectors with high marketization and strong business competitiveness, we'll enhance investment mechanisms and boost efficiency, fully leveraging the role of the market. In areas with moderate returns where private capital is willing to invest, we'll fully leverage the role of the new public-private partnership (PPP) mechanism and infrastructure REITs. This will help establish a sustainable renewal and upgrading model that integrates government guidance, market operations, and participation from all sectors of society.

Thank you.

Zhinews of Shenzhen Satellite TV:

We know that energy is a crucial support for economic and social development, and it is also essential for the development of enterprises. Therefore, I would like to ask, does the package of incremental policies have any specific arrangements for strengthening energy security with major projects? Thank you.

Zheng Shanjie:

Energy is a critical basis for economic development, and you have raised a very important question. I would like to invite Mr. Zhao to answer this question.

Zhao Chenxin:

Thank you for the question. Mr. Zheng just emphasized the importance of strengthening focus on factor allocation security. Indeed, energy supply is a crucial part of factor allocation security. It is vital for high-quality development and can be considered a key to supporting high-quality development. In order to implement the decisions made at the meeting of the Political Bureau of CPC Central Committee held on September 26, and to secure factor allocation to support the development of the real economy, the NDRC has further clarified measures for controlling the total amount and intensity of energy consumption.

First, we will effectively expand the space for energy use. Since the 14th five-year plan, the NDRC, by improving policies on total energy consumption and intensity regulations, has adjusted our energy consumption regulations to exclude raw material energy use and non-fossil energy consumption. As you all know, with the rapid development of renewable energies, the scale of space for energy usage under this policy is gradually increasing. Based on what we have learned so far, further efforts are still required in order to make good use of this policy. Therefore, this incremental policy further specifies that, during the assessment and review for energy saving responsibilities for fixing asset investment projects, raw material energy consumption and non-fossil energy consumption should be strictly deducted. This is aimed at guiding localities to prioritize controlling consumption of fossil fuels and increase the use of renewable energy through the purchasing of green electricity and green certificates, thereby freeing up more energy usage space for economic and social development. At the same time, we will strengthen our efforts to curb the blind and disorderly launch of projects that consume high amounts of energy and emit high amounts of emissions. This will effectively curb unreasonable new energy demands, promote industrial optimization and upgrading, and foster healthy development.

Second, we will thoroughly explore energy-saving potentials in existing energy consumption. Currently, China's total energy consumption is approximately 10 times that of the projected incremental energy consumption during the 14th Five-Year Plan period. Exploring energy-saving potentials can significantly free up energy usage space for economic and social development. We will coordinate the use of funds from the central budget, ultra-long-term treasury bonds and other financial channels, combined with the implementation of initiatives such as large-scale equipment upgrades and consumer good trade-ins, to support energy-saving and carbon-reducing transformations within key areas as well as upgrades of energy equipment. By actively tapping into energy-saving potentials, we aim to protect the transformation and upgrading of traditional industries and the development of new industries to meet the reasonable demand for energy.

Third, we will intensify the implementation of separate energy consumption quotas for major national projects. A group of major projects that align with the national major productivity layout, enhance the resilience and security of industrial chains and supply chains as well as support the development of new quality productive forces will be included in separate energy consumption quotas during the 14th Five-Year Plan period. The energy consumption of these projects will no longer be included in provincial governments' energy-saving target responsibility assessments, thus strengthening the energy supply guarantee for these major national projects.

Next, the NDRC will continue to ensure that relevant policies are effectively implemented, focusing on enhancing energy efficiency at a higher level and better quality. By strengthening energy supply guarantees for high-quality development, we aim to provide robust energy support for sustained and healthy economic development.

That's all for my answer. Thank you.

The Paper:

Promoting people-centered new urbanization is a systematic project. To ensure that rural migrants have the desire, ability and conditions to live in cities long term, what measures are included in the package of incremental policies to accelerate the construction of new urbanization? Thank you.

Zheng Shanjie:

Thank you for your question. It is a very comprehensive one. The CPC Central Committee and the State Council have recently issued a document on new urbanization. I will invite Ms. Zheng Bei to answer this question.

Zheng Bei:

Thank you for your question. As you mentioned, promoting people-centered new urbanization is a systematic project. After the State Council issued the "Five-Year Action Plan on Deepening the People-Centered New Urbanization Strategy" on July 28, we have been working closely with relevant departments to refine key tasks for this year and next year. We are conducting specialized training at the provincial, municipal and county levels, focusing on tackling bottleneck challenges in advancing new urbanization through pilot projects. To accelerate the development of people-centered new urbanization, we emphasize within the package of incremental policies four key actions outlined in the five-year action plan to increase policy support and implementation efforts.

First, in the implementation of a new round of urbanization for rural migrant populations, we focus on removing bottlenecks in the urbanization process for over 170 million rural migrant workers and their accompanying family members. To address difficulties with obtaining household registration in big cities, we are prioritizing speeding up the relaxation of household registration requirements in cities with a permanent resident population of over 3 million, establishing community public household registration systems and improving policies for obtaining household registration through renting. To address the pressing concerns of rural migrant populations, such as education and health care, we are increasing support through ultra-long-term treasury bonds for projects such as the building of high schools and the renovation of hospital wards in cities that experience significant growth in population.

Second, to raise the level of urbanization in potential regions, we focus on addressing issues such as insufficient carrying capacity of county seats and weak industrial foundations. By actively leveraging local government special bonds and medium- to long-term loans from policy banks, we are accelerating the construction of basic infrastructure and industrial support facilities in county towns. This effort aims to promote industry alignment and cooperation between the central and western regions as well as the eastern region, facilitating the implementation for a number of major projects.

Third, to cultivate modern metropolitan areas, we focus on connecting intercity transportation's "dead ends" and “traffic bottlenecks.” By strengthening financial support through local government special bonds and other means, we are constructing a series of municipal (suburban) railways, intercity railways and urban expressways to create commuting circles, industrial clusters and living circles, thereby enhancing the level of integrated urban development.

Fourth, to enhance urban safety and resilience, we focus on eliminating risks and vulnerabilities in urban construction. We are prioritizing infrastructure projects like underground pipeline networks; planning next year's investment projects in advance; vigorously implementing urban lifeline safety projects; and accelerating the improvement of flood controls and drainage systems. These actions are all aimed at promptly addressing shortcomings in urban safety and resilience.

New urbanization serves as a "multiplier" for expanding consumption and an "accelerator" for driving investment. We will work with relevant departments to fully leverage the significant role of new urbanization in boosting domestic demand, providing strong support for stable, healthy and sustainable economic development. Thank you!

Shou Xiaoli:

Let's continue with the questions. Due to time constraints，the last two questions please.  

South China Morning Post:

I would like to ask whether the NDRC will consider accelerating the approval and construction of local infrastructure and other government investment projects, especially some large-scale, cross-regional projects. Is there a specific list? Thank you.

Zheng Shanjie: 

Thank you. Many places, departments, businesses and operating entities are very concerned with these issues. Mr. Liu will address this.

Liu Sushe:

The Political Bureau of the CPC Central Committee's meeting on Sept. 26 emphasized the need to issue and effectively use ultra-long special treasury bonds and local government special-purpose bonds to better leverage the role of government investment. In the current economic situation, reasonably increasing infrastructure investment helps maintain stable investment growth and promotes steady and healthy economic development. Regarding your question on whether the approval and construction of local infrastructure investment projects will be accelerated, we at the NDRC consider the following three points:

First, we will select the right investment direction. Projects must focus on the needs of economic development and the improvement of people's well-being, precisely addressing weaknesses and strengthening deficiencies. For example, urban renewal and renovation, which have significant investment potential and clear economic and social benefits, should be key directions for future local infrastructure investments.

Second, we will solidify preliminary work. Local investment projects must conduct thorough preliminary feasibility studies, adhere to the principle of evaluation before decision-making and scientifically determine project plans for construction. Projects must efficiently complete relevant approval procedures and establish construction conditions according to regulations, ensuring smooth project implementation.

Third, we will secure project construction funding. It is essential to fully evaluate project funding plans as well as lawfully and compliantly secure construction funds from various channels. Particularly, for eligible projects, we will consider appropriately increasing central government support with investments to effectively reduce the financial burden on local governments.

That concludes my response. Thank you.

Shou Xiaoli:

The last question.

Nanfang Metropolis Daily:

After October, various regions will gradually enter winter's peak season for electricity, heating and gas usage. How can you ensure security with energy supplies and the stabilization of prices for essential commodities this winter? Thank you.

Zheng Shanjie:

Thank you, this is indeed a matter of great concern for the public. Every year we take measures to respond to summer and winter peaks. I would like to invite Mr. Li to address this question.

Li Chunlin:

I am pleased to address this question. As Mr. Zheng mentioned, this issue affects every household. With the National Day holiday just over and deep autumn approaching, the northern regions will gradually enter the heating season, followed by the New Year and Spring Festival. The meeting of the Political Bureau of CPC Central Committee on Sept. 26 has already planned for this work. Let me briefly respond to these two issues.

First is about energy security. The NDRC, in conjunction with relevant parties, has made a series of early arrangements. Overall, the foundation for energy supply security is quite solid. In terms of coal, national coal production has remained stable with coal inventory in regulated power plants exceeding 200 million metric tons, which is enough for over 30 days on average, a historical high for the same period. The northeastern regions have ample coal reserves for winter. Regarding electricity, as of the end of August, the national installed power generation capacity reached 3.13 billion kilowatts. Despite increased uncertainty in power supply due to the high proportion of renewable energy sources, such as hydropower, wind power and photovoltaic power, which now account for more than half of the total installed capacity, we can achieve stable and reliable power supply through enhanced intelligent dispatching and improved cross-provincial and cross-regional mutual aid levels. For natural gas, resource supplies are sufficient with peak-shaving and gas storage capacity increased by eight billion cubic meters year on year, ensuring that storage targets are met before winter.

Next, the NDRC will continue to strengthen monitoring and analysis, enforce responsibilities across all parties and make every effort to ensure a stable energy supply. First, we will increase the production and supply of resources such as coal and natural gas, ensure that all types of power generation units operate at full capacity and promote the efficient utilization of new energy sources. Second, we will focus on increasing reserves of thermal coal and natural gas, enhance cross-provincial and cross-regional power dispatching and improve the precision of energy storage deployment to boost peak support capabilities. Third, we will prioritize energy use for people's livelihoods, minimizing the impact of extreme weather and other emergencies on normal production and daily life. During the past summer, due to extreme heat and other factors, the national maximum power load and daily maximum electricity consumption reached historic highs of 1.451 billion kilowatts and 32.5 billion kilowatt-hours, respectively, exceeding the 2023 peak by 106 million kilowatts and 2.4 billion kilowatt-hours. Despite these challenges, China maintained a stable and orderly energy supply. Even when typhoons and flooding caused temporary power outages in certain areas, repairs were organized immediately to restore power promptly. With the concerted efforts of all parties, the energy supply for this winter's heating season can be effectively guaranteed, providing strong support for the continued economic recovery and ensuring that people stay warm during the winter months.

Second is about ensuring the supply and stabilizing the prices of essential commodities for people's livelihoods. Currently, the market supply of essential commodities nationwide is abundant, and operations are stable. Summer grain production has increased, and a good harvest for autumn grain is anticipated. Hog production is at a reasonable level, and the inventory of egg-laying hens and other livestock remains high. The acreage of vegetables in fields has increased. Additionally, reserves of grain and cooking oil in 36 large and medium-sized cities can meet consumption needs for more than 15 days; the capacity to regulate pork reserves is continuously improving; and the reserves of winter and spring vegetables in large northern cities are steadily being strengthened, providing a solid foundation for ensuring supply and stabilizing prices. Recently, in response to increased consumption during the National Day holiday, many regions initiated reasonably-priced sales to benefit the public, increasing the supply of affordable vegetables and other goods to ensure sufficient market supply and stable prices. 

Next, our commission will closely monitor market dynamics and, in conjunction with relevant parties, take proactive measures tailored to the winter, New Year and Spring Festival periods. We will focus on autumn and winter agricultural production, enforce local reserve responsibilities, strengthen the connection between production and sales, ensure smooth logistics and transportation, timely release supplies, enhance market supervision and improve contingency plans. These efforts aim to effectively guarantee the market supply of essential commodities for people's livelihoods and create a favorable environment for the effective implementation of incremental policies. 

Thank you!

Shou Xiaoli:

Thank you, Mr. Zheng, thank you to all the speakers and thank you to all the journalists for your participation. This concludes today's press conference. Goodbye, everyone.

Translated and edited by Zhou Jing, Liu Sitong, Zhang Rui, Huang Shan, Wang Xingguang, Li Xiao, Ma Yujia, Gong Yingchun, Wang Qian, Zhang Tingting, Chen Xinyan, Li Huiru, Yang Chuanli, Yuan Fang, David Ball, Rochelle Beiersdorfer, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.