Read in Chinese
Speakers:
Mr. Shen Danyang, head of the government work report drafting team and director of the State Council Research Office
Mr. Chen Changsheng, a member of the government work report drafting team and deputy director of the State Council Research Office
Chairperson:
Ms. Shou Xiaoli, director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO
Date:
March 5, 2025
Shou Xiaoli:
Ladies and gentlemen, good morning. Welcome to this press briefing held by the State Council Information Office (SCIO). Today, we have invited Mr. Shen Danyang, head of the government work report drafting team and director of the State Council Research Office, and Mr. Chen Changsheng, a member of the drafting team and deputy director of the State Council Research Office, to introduce the report and answer your questions.
Now, I'll give the floor to Mr. Shen for his introduction.
Shen Danyang:
Hello, everyone. It is a pleasure to meet with you and introduce the drafting of the Report on the Work of the Government. This morning, Premier Li Qiang delivered the government work report at the third session of the 14th National People's Congress (NPC). My colleagues and I, who participated in the drafting of the report, listened attentively to the premier as he delivered the report in the Great Hall of the People. As members of the drafting team, we were already familiar with the content, but listening to the report being delivered was still exciting and inspiring.
Since the opening of the session, we have been following the media coverage, and we are pleased to see positive feedback and comments from all sides. In interviews after the opening meeting, we also noticed that many deputies to the NPC and members of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) said that the report addresses social concerns, responds to various expectations, and will effectively boost confidence. One NPC deputy stated that this year's report is targeted, concise and foresighted, earnest and down-to-earth, and will gain wide recognition. He expressed his strong appreciation and support. Many netizens posted online, expressing their pride in the country's new achievements and feeling motivated by the new goals, tasks and policies proposed in the report. One netizen said that the government work report contains many important details, from economic growth to people's well-being, all affecting the everyday lives of ordinary people and aiming for concrete development achievements that bring tangible benefits to the public. There were many similar remarks, which I imagine you have also noticed.
Reporting to the NPC on the work of the government is a statutory duty of the State Council. Diligently drafting the government work report is extremely important, and the Central Committee of the Communist Party of China (CPC) and the State Council attach great importance to it. General Secretary Xi Jinping presided over meetings of the Political Bureau of the CPC Central Committee and its standing committee to review the report, and made important instructions and clear requirements multiple times, pointing the way and providing the basic principles for drafting the report. Premier Li Qiang was personally in charge of drafting the report, convening executive meetings and plenary meetings of the State Council to study and discuss the report, holding multiple symposiums to listen to comments and suggestions, and putting forward clear requirements and concrete thoughts on the framework, content and expression of the report. Other leading officials of the State Council also provided guidance on the drafting and revision of the report.
The drafting team, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, earnestly studied and comprehended the guiding principles of the 20th CPC National Congress, the second and third plenary sessions of the 20th CPC Central Committee, and the Central Economic Work Conference. During the drafting process, great importance was attached to soliciting and reflecting ideas from all sides. It can be said that the drafting of the report was a democratic process of pooling wisdom from all sides to address social expectations and adopt increasingly refined, practical policies. The ideas and suggestions reflected in the report mainly came from three channels.
First, the premier directly listened to ideas and suggestions. In late January, Premier Li Qiang hosted three symposiums: one with experts, entrepreneurs and people working in the fields of education, science, culture, health care and sports; one with leaders of the central committees of non-Communist parties and the All-China Federation of Industry and Commerce, as well as individuals with no party affiliation; and one with leading government officials from various provinces, cities, counties and townships (towns) which was held in Hefei, Anhui province.
Second, we collected ideas from all localities and departments. During the initial stage of drafting the government work report, our team listened to the thoughts and suggestions of NPC deputies, CPPCC members, staff of relevant departments and enterprises, as well as experts and scholars, through thematic surveys and consultation meetings. After the report was drafted, it was sent to different localities, departments and entities for feedback according to procedures. Nearly 4,000 copies were sent out and returned, from which more than 1,000 comments and suggestions were extracted.
Third, we utilized media platforms to solicit opinions. For example, starting from December last year, www.gov.cn, together with 21 online platforms and some government websites, launched the online campaign titled "@State Council, Share Your Views on 2025 China's Government Work Report" to collect suggestions from internet users. As of 9 a.m. on March 5, just before we came here, we checked and found a total of 2.04 million suggestions. The internet users who left messages and offered suggestions come from a wide range of backgrounds, including different age groups, industries and regions. The drafting group carefully selected over 2,000 representative suggestions from them.
For opinions and suggestions collected from the above three channels, the drafting group carefully studied each one and adopted as many as possible. In the coming days, we will continue to revise and improve the report based on the opinions and suggestions of the NPC deputies and CPPCC members.
This year's report is still divided into three main parts. The first part is a review and summary of last year's work and achievements. The second part elaborates on the overall requirements, main targets and policy orientations for the economy and social development this year. The third part proposes tasks in 10 key areas that the government should focus on this year. At the same time, it also covers work related to government performance, as well as ethnic affairs, religious affairs, overseas Chinese affairs, Hong Kong and Macao, Taiwan, national defense and foreign affairs. The report emphasizes a simple, practical and down-to-earth writing style, using language that is as simple and concise as possible, and avoiding professional terminology, with the aim of making it easy for the public to understand.
That concludes my introduction. Next, my colleague Mr. Chen and I are willing to answer your questions on the drafting of the report and related issues. Thank you.
Shou Xiaoli:
Thank you, Mr. Shen, for your introduction. The floor is now open for questions. Please identify the media outlet you represent before asking your questions.
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CCTV:
Mr. Shen, as the head of the drafting group for this year's government work report, could you please introduce the key points and features of this year's report? Thank you.
Shen Danyang:
Thank you for your question. This year's government work report prominently embodies the comprehensive implementation of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the decisions and deployments of the Party Central Committee. From the very beginning of the drafting process, Premier Li Qiang made it clear that we must thoroughly study and implement the important speeches and instructions of General Secretary Xi Jinping, and strictly carry out the decisions and deployments of the Party Central Committee. The main content of the report, including the review and summary of last year's work, the overall requirements for the government's work this year, the main targets, macro policy orientations and major tasks, were all drafted in accordance with the guiding principles of General Secretary Xi Jinping's important speech at last year's Central Economic Work Conference. The drafting group earnestly studied and grasped the main principles of General Secretary Xi Jinping's latest important speeches and instructions and the latest meetings and documents of the Party Central Committee, and fully reflected them in the report. At the same time, a series of specific work measures were proposed in combination with the actual conditions of various fields, striving to refine and implement the decisions and deployments of the Party Central Committee to ensure their effective implementation.
This year's report particularly emphasizes high quality, reform, people's living standards, and strengthening confidence. It can be said that this year's report focuses on promoting high-quality development, deepening reform, prioritizing people's livelihoods, and boosting confidence. I will elaborate on these four aspects.
First, this year's report particularly emphasizes promoting high-quality development. The report stresses that to fulfill the goals and tasks for this year, we must thoroughly implement Xi Jinping Thought on the Economy and focus on the top priority of high-quality development. We must work to both improve the quality of growth and appropriately increase output. The report outlines the annual work plan and key tasks for 2025, focusing on building a high-level socialist market economy system, developing a modern industrial system, promoting comprehensive rural revitalization, fostering coordinated regional development, and advancing high-level opening up. It emphasizes the thorough integration of high-quality development requirements across all stages and aspects of economic and social progress.
Second, this year's report particularly emphasizes further deepening all-round reform. The report thoroughly implements the guiding principles of the third plenary session of the 20th CPC Central Committee and summarizes and arranges reform work. In addition to specific deployments to accelerate the implementation of landmark reform measures, such as effectively stimulating the vitality of various business entities, advancing the construction of a unified national market, and deepening the reform of the fiscal, tax and financial systems, reform tasks and requirements have also been put forward in areas such as consumption and investment, education and technology, work related to agriculture, rural areas and rural residents, ecological and environmental protection, and social undertakings. The term "reform" appears more than 40 times throughout the report, making it a particularly important keyword this year.
Third, this year's report particularly emphasizes reflecting on the principle of "people's livelihood as paramount." For example, in the section on main targets, it proposes that personal income should grow in line with economic growth. In the section on the correct policy orientation, it proposes pursuing people-oriented macro policies. In the section on key tasks, it also puts forward a series of practical measures of concern to the people to improve their well-being. This is intended to reflect that the government's work should always adhere to a people-centered approach, respond to the needs and concerns of the people in a timely and effective manner, and wholeheartedly address people's livelihood issues, ensuring that the people can live a good life.
Fourth, this year's report particularly emphasizes boosting confidence. As we all know, China continues to face a complex and challenging development landscape this year, with increasing uncertainties in the external environment. As the saying goes, as long as confidence remains intact, solutions will always outnumber difficulties. Whether outlining the overall requirements and policy orientations for economic and social development this year, or specifying government tasks and policy measures, the report takes a pragmatic, proactive and effective approach. It fully demonstrates our unwavering determination to drive sustained economic recovery and growth, while also reflecting a clear commitment to tackling challenges head-on and making meaningful progress.
That concludes my answer. Thank you.
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Yicai:
The Report on the Work of the Government has set this year's economic growth target at around 5%, which is higher than some institutional forecasts. What factors were taken into consideration when setting this target? And is the target achievable? Thank you.
Shen Danyang:
I will answer this question. The economic growth target of around 5% for this year was set after extensive research and careful deliberation. Prior to setting the target, the State Council dispatched numerous research teams across the country to conduct field research and gather feedback from relevant departments, experts, scholars and enterprises. The target was formulated based on a thorough assessment of both domestic and international conditions and various factors, striking a balance between necessity and feasibility. The target may be higher than the forecasts of some foreign institutions. But as we all know, any economic forecast is a projection based on certain assumptions, and the results are likely to change in response to environmental conditions, macro policies and reform measures — this has happened before. Based on China's development experience and global practices, achieving a development goal depends on three key factors: development momentum, available capabilities and conditions and supportive policies. Taking all these factors into account, we are very confident that this year's growth target can be achieved.
First, the positive momentum of China's economic recovery continues to strengthen and expand. While uncertainties persist in the international environment, and these factors continue to evolve, we have always emphasized that the key is to focus on our own affairs. Since the Political Bureau of the CPC Central Committee announced a package of incremental policies at a meeting on Sept. 26 last year, China's economy has shown a clear rebound. In Q2, GDP growth was 4.7%, in Q3 it was 4.6%, and in Q4 it was 5.4%, successfully achieving the annual growth target of around 5%. This momentum is highly encouraging. So, what about the situation this year? The rapid development of technology in China, particularly in artificial intelligence (AI), has captured global attention. The cultural and tourism sectors have thrived, especially during the Spring Festival, where consumption exceeded expectations. Recently, Chinese asset prices have steadily rebounded, and business confidence continues to grow. Since the beginning of this year, key economic indicators, such as the manufacturing purchasing managers' index (PMI), real estate sales and container throughput, further validate the stable growth momentum of China's economy.
Second, China has accumulated many favorable conditions for economic development. Most domestic and international research institutions agree that China still holds significant development potential, with a relatively high potential growth rate of around 5%. In recent years, new industries and growth drivers have been expanding rapidly. Sectors such as new energy vehicles (NEVs), photovoltaics and shipbuilding are now globally leading, while AI-related industries have seen explosive growth. These developments are injecting powerful new momentum into China's economic expansion. Previous negative factors, such as the real estate sector, are now showing positive changes, and their drag on growth is gradually diminishing. Even more promising is that as the reform measures outlined in the third plenary session of the 20th CPC Central Committee are implemented, the intrinsic momentum and vitality of economic development will be further unleashed.
Third, macroeconomic policies and policy measures are providing solid support. We have intensified efforts to implement a comprehensive package of both new and existing policies, ensuring their sustained effectiveness. Notably, the more proactive and effective macro policy mix being implemented this year, which is unprecedented in recent years, offers strong policy backing for economic growth. Furthermore, macroeconomic policies still have room for further adjustments and will be dynamically fine-tuned to respond to changing circumstances.
In conclusion, setting a growth target of around 5% is in line with China's current realities and the laws of economic development, making it an achievable goal. However, achieving this target will not be easy and will demand considerable effort. Thank you.
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21st Century Business Herald:
The report proposes implementing more proactive and effective macro policies. What are the key considerations behind this approach? In which areas will this approach be reflected? What innovations can we expect in the implementation of macro policies this year? Thank you.
Shen Danyang:
I would like to invite Mr. Chen to answer this question. He was once head of the Macroeconomic Research Department at the Development Research Center of the State Council and deputy director of the center, and so is well-placed to address this issue given his extensive experience in macroeconomic research.
Chen Changsheng:
Thank you for your question. The issue you raised has been a focus of attention since last year's Central Economic Work Conference. The premier's report this morning revealed the details. It's important to note that the Political Bureau of the CPC Central Committee made a decisive move on Sept. 26 last year by implementing a package of incremental policies, which resulted in positive shifts in economic performance, increased confidence and a clear economic rebound. This year's report calls for more proactive and effective macro policies, continuing the policy approach outlined at the Political Bureau of the CPC Central Committee meeting on Sept. 26 last year. From a macroeconomic perspective, external uncertainties are increasing, and domestic aggregate demand remains insufficient, with weak consumption in particular standing out as a prominent issue. These challenges make it necessary to implement stronger counter-cyclical adjustments through macro policies. From the perspective of policy space, we are also well-positioned. For example, China's government debt ratio is around 70%, which is lower than that of major economies, with the central government's debt level being particularly low, providing significant room for borrowing. Globally, many countries are currently adopting accommodative monetary policies, and given China's price level, there is considerable room for maneuvering in monetary policy.
How can we embody the principle of being "more proactive and effective?" You all read the report delivered by the premier this morning. Much of the data was released for the first time, and some even exceeded expectations. Being "more proactive and effective" can be understood from four aspects: First, in terms of policy orientation, this is the first time we have proposed "a more proactive fiscal policy." We have also replaced the "prudent monetary policy" implemented for 14 consecutive years with "an appropriately accommodative monetary policy." This combination of macroeconomic policies is designed to deliver a clear and strong policy signal to people of all sectors. Second, in terms of policy support, this year's deficit-to-GDP ratio is set at approximately 4%, representing a 1 percentage point increase from last year. The government deficit is projected at 5.66 trillion yuan. In addition, a total of 1.3 trillion yuan in ultra-long special treasury bonds and 4.4 trillion yuan in local government special-purpose bonds will be issued, both reaching record highs. In total, this year's new government debt will reach 11.86 trillion yuan, an increase of 2.9 trillion yuan compared to last year. This scale is very large. We will see monetary policy play a greater role in adjusting both the monetary aggregate and structure. The policy will include timely cuts to required reserve ratios and interest rates, providing stronger support for the real economy and aiming to reduce overall financing costs. Third, regarding timing, policies should be implemented as soon as possible, which in itself reflects the policy support. Some policies should be implemented as soon as they are decided — better early than late — to stay ahead of any uncertainties. Once a policy is finalized, we should act decisively and with ample force to maximize its effectiveness. Fourth, with regard to coordination, we will further strengthen the alignment of macro policy orientations, enhance evaluations of policy consistency, and improve coordination and collaboration among various departments. We will also focus on prominent issues and pool policy resources to improve policy coordination, creating a combined impact greater than the sum of individual actions.
If you continue to pay attention to the report or read it closely, you will find that it fully embodies the innovative approaches to macroeconomic regulation introduced by the CPC Central Committee since the meeting of the Political Bureau of the CPC Central Committee held on Sept. 26. For example, the report explicitly states that we should pursue people-oriented macro policies. If you read it more carefully, you may notice some new expressions. For instance, the report challenges the conventional notion that "consumption is a slow variable," gives boosting consumption a more prominent position, and promotes synergy between increasing consumption and expanding investment. Another example is the report's emphasis on asset prices in macroeconomic regulation. For the first time, ensuring stability in both the real estate market and the stock market has been included as one of the overall requirements, as noted by some reporters familiar with macroeconomics. Additionally, the report highlights that more policy resources will be directed toward serving the people and meeting their needs. These are examples of innovations in macro policies. By creating a positive interplay between economic growth and improvements in people's lives, we aim to better promote high-quality development, stabilizing both growth and employment. Thank you.
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Lianhe Zaobao:
This year's government work report emphasizes boosting consumption. What are the main challenges in this area? What new policies and measures will be implemented to vigorously boost consumption? Thank you.
Shen Danyang:
I'll answer these questions. Both consumption and investment are key components of domestic demand. Given the problems you mentioned, you might have observed that the government work report identifies "stimulating domestic demand across the board" as the first of the 10 key tasks for 2025. In light of the fact that insufficient demand is a major issue facing the Chinese economy, and given that changes in the international environment may exert new impacts on external demand, we need to place a greater focus on domestic demand in order to drive economic development. Therefore, the report emphasizes the need to stimulate domestic demand across the board, which requires comprehensive measures to tap the potential of domestic demand across all sectors, making it the main engine and anchor for economic growth.
To expand domestic demand, the report assigns a more prominent role to boosting consumption. Greater efforts are needed to address the following key issues: First, the lack of purchasing power; second, the shortage of quality products and services; and third, the need for further improvement in the consumption environment. Therefore, this year, on the basis of increasing the intensity and expanding the scope of support for the consumer goods trade-in program, we will also emphasize the "three priorities" and implement "one action." The "three priorities" include increasing people's incomes and reducing their burdens to enhance spending power, enhancing the supply of quality products and services to drive effective demand, and improving the consumption environment to promote consumer spending. We will also implement "one special action," which involves launching special initiatives to boost consumption. Relevant departments are currently developing an action plan and supporting policies for this purpose, which will be introduced and implemented as soon as possible.
While boosting consumption, the report also outlines targeted measures to strengthen investment. Addressing persistent challenges in the investment sector, it emphasizes the need to expand effective investment and boost investment returns. In terms of funding, we will simultaneously expand funding channels and increase the scale of funding through substantially enlarged government investments. These investments include ultra-long special treasury bonds, central government budgeted investments and local government special-purpose bonds. In terms of management, we'll streamline processes for local government special-purpose bonds, implement a negative list for investment areas, delegate authority for project review and approval, and increase ultra-long-term loans along with other forms of financing support. For investment direction, we'll encourage more investment in the service sector, use government investment to stimulate private investment, implement policies designed to spur the growth of the private sector, and support and encourage the development of private investment. Thanks for your questions.
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Market News International:
What are the considerations behind setting this year's CPI target increase at around 2%? What policy measures will be implemented to promote a moderate rise in prices? Thank you.
Shen Danyang:
These questions will be answered by Mr. Chen.
Chen Changsheng:
Thanks for your questions. This is a topic of broad societal concern that spans both macro and micro aspects. Prices are fundamental signals in a market economy, acting as the "body temperature" of economic operations. Neither excessively high nor persistently low levels are desirable. You may have noticed that China's price levels have generally stayed low over the past two years. From a static consumer perspective, this may seem like a good thing, as the same 100 yuan can buy more goods. However, from a dynamic perspective of national economic circulation, persistently low prices pose challenges. They result in higher real interest rates, heavier debt burdens, reduced corporate investment, and fewer opportunities for employment and income growth. Historical experiences and practices from countries worldwide indicate that moderate price increases are signs of healthy economic functioning.
In this year's government work report, the CPI increase is projected at around 2%, differing from previous years and signaling a more proactive, policy-driven approach. The rationale is to strengthen the guiding role of price indicators for both society and the market, as current downward price pressures exceed upward trends. By implementing policies to promote a moderate rise in prices, we can protect people's basic livelihoods. This approach also helps boost market confidence, encourages businesses to invest more, and creates more opportunities for citizens to find jobs and increase their income, ultimately benefiting the overall macroeconomic cycle.
In terms of this year's deployment, you can closely review the government work report, which outlines four key measures. First, we will intensify counter-cyclical adjustments in our macroeconomic policies. We will leverage fiscal, monetary and other policies to balance supply and demand. Second, we will prioritize stimulating consumption to tap demand-side potential. Consumption is the ultimate demand, and robust consumption fuels national economic circulation and helps stabilize prices. Third, we will take comprehensive steps to address rat race competition and price wars. There are profound underlying reasons behind price wars. We should take measures such as strengthening standards, enhancing supervision, promoting industry self-regulation, and regulating local governments' investment attraction practices. These steps will ensure prices reflect quality, reinforce the principle of "you get what you pay for," and prevent a situation where "bad money drives out good." Fourth, we will make greater efforts to stabilize the real estate market and the stock market. The real estate and stock markets serve as critical economic barometers, with real estate constituting the largest share of household assets. Stabilizing the real estate and stock markets can unleash wealth effects, boost consumption, and facilitate moderate price recovery. Thank you.
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Economic Daily:
We have noticed that the government work report reviews the hard-won achievements of the past year through the dual lenses of "stability" and "progress." Could you provide further interpretation? Thank you.
Shen Danyang:
I'll answer this question. Over the past year, China has faced both challenges and achievements, with the achievements being particularly inspiring. This morning, Premier Li Qiang highlighted these accomplishments through the dual lenses of "stability" and "progress" in the government work report. While the report broadly covered key achievements, space constraints limited detailed elaboration on each success. Here, I'd like to highlight three notable points to further supplement the highlights of last year's government work.
The first notable point is the rebound and upward momentum in the economy. In the second and third quarters of last year, China's economic operations faced significant downward pressure due to various domestic and international factors. Following decisive decisions made at a meeting of the Political Bureau of the Communist Party of China Central Committee on Sept. 26, the State Council fully implemented a package of incremental policies. This led to a significant recovery in the economic growth in the fourth quarter, with its growth rate reaching 5.4% and contributing to an annual growth rate of 5%. The GDP rose to 134.9 trillion yuan, exceeding the 130 trillion yuan mark for the first time. Globally, this growth rate not only surpassed the world average of about 3% and the overall pace of emerging markets and developing economies but also outpaced the growth rate of the U.S., Germany and Japan. Among the world's top four major economies, China maintained the highest growth rate. China's contribution to global economic growth remains around 30%, continuing to be a significant engine for the world's economic growth. As the saying goes, "One does not know the difficulty until one has experienced it." Such a rate of economic growth, combined with this rebound momentum, is truly remarkable and even more precious.
Second, the development of new quality productive forces has significantly accelerated. In terms of scientific and technological innovation, the report highlighted major achievements such as the "Chang'e-6" mission and the Mengxiang ocean drilling vessel. In fact, there are many more examples like these. For instance, China's domestically developed third-generation superconducting quantum computer, Origin Wukong, has begun operating, and the China-standard high-speed train prototype capable of reaching a speed of 450 kilometers per hour has completed both its design and manufacturing phases. China reached 11th position in the Global Innovation Index, 2024 rankings, making it one of the fastest 10-year climbers. In terms of industrial development, high-tech industries such as aerospace and electronic communications have witnessed rapid expansion. Meanwhile, there has been further enhancement in innovation capability within sectors like high-end equipment and artificial intelligence. Last year, the added value of the high-tech manufacturing industry increased by 8.9%, while that of the equipment manufacturing industry rose by 7.7%. These growth rates were 3.1 and 1.9 percentage points higher, respectively, than the overall growth rate of industries above designated size.
Third, significant strides have been made to ensure and improve the people's wellbeing. Last year, numerous measures to enhance people's livelihoods were introduced and implemented. Some were highlighted in the government work report, while others were not included due to space constraints. For example, in the area of education, the standard of living subsidies for students from economically disadvantaged families in compulsory education were raised, benefiting almost 20 million students nationwide. For social security, the basic pension for retirees rose by 3%, and special one-time living subsidies were provided to more than 11 million in need. Regarding housing, nearly 2 million units of resettlement housing were either built or delivered. In terms of consolidating the gains of poverty elimination, efforts to expand work-as-relief programs were intensified, enabling more than 33 million people who have been lifted out of poverty to secure employment. Notable progress was made in relation to efforts to improve people's wellbeing.
I'll conclude here due to time constraints, despite there being much more that could be discussed. Thank you.
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Phoenix TV:
At its third plenary session, the 20th CPC Central Committee set forth plans for further deepening reform comprehensively. The government work report also includes specific arrangements for reform and opening up. Could you shed light on the key sectors targeted for reform initiatives this year? And what new measures will be implemented to expand opening up?
Shen Danyang:
I will answer this question. This year, the government work report primarily focuses on implementing the reform plans outlined in the third plenary session of the 20th CPC Central Committee. Throughout the document, it embodies the principles and requirements of reform, emphasizing the need to effectively implement annual reform tasks. It highlights the importance of both comprehensive advancement across all sectors and achieving breakthroughs in key areas, particularly in accelerating the implementation of landmark reform measures. The report outlines a wide range of reform measures. Here, I will highlight just three of them. Regarding reform of the fiscal and taxation systems, we will press ahead with moving excise tax collection further down the production-to-consumption chain, with the power of collection steadily being passed to local governments this year. This effort has been proposed for several years, and now, there is a firm commitment to speeding up its implementation. This reform will have a substantial impact and provide significant advantages. It alleviates financial pressure on producers without increasing the burden on taxpayers. Furthermore, it will encourage local governments to improve the consumption environment and actively bolster local consumption. For education reform, the report proposes a phased implementation of free preschool education. This is seen as an essential reform measure to ensure equitable preschool access. It offers numerous benefits to the public and society, helping to reduce family childcare and education costs, as well as contributing to the long-term demographic stability. In terms of health care reform, the report underscores the need to deepen the reform of public hospitals with a focus on public welfare. This will help effectively enhance the service quality of public hospitals, making health care more reliable and convenient for the public. Many breakthrough and landmark reform measures are mentioned in the report. However, due to time constraints, I am unable to elaborate on them one by one.
Speaking of openness, opening up is a key strategy for China's development. The Chinese government will steadfastly promote greater openness, continually widening its doors to the world. This year, the report also proposes several new measures to enhance openness, emphasizing the need to steadily expand institutional opening up and take the initiative to open wider and advance unilateral opening up in a well-ordered way, and continue fostering a world-class business environment that is market-oriented, law-based, and internationalized. For instance, the report proposes to actively promote foreign investment. This year, we will further relax market access for foreign investment, expand pilot projects to open up sectors including telecommunications, health care and education, revise and extend the "Catalog of Encouraged Industries for Foreign Investment," and broaden the fields and scope of foreign investment. Another example is the effort to strengthen support services for foreign-invested enterprises, optimize project services throughout the entire process, expand financing channels for these enterprises, and facilitate easier personnel exchanges. And there are, in fact, many more measures for opening up like these efforts. These measures will offer more opportunities and better conditions for foreign enterprises and investors to develop in China. We believe that as long as foreign investors seize favorable opportunities to make long-term plans and actively invest in and cooperate with China, they will undoubtedly be able to benefit from those opportunities arising from China's ever-expanding market. Thank you.
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Zhinews of Shenzhen Satellite TV:
The report emphasizes the need to effectively stimulate the vitality of various business entities. As you mentioned earlier, this year's report particularly focuses on boosting confidence. May I ask what effective measures will be taken this year to enhance enterprise vitality, improve business expectations and boost confidence? Thank you.
Shen Danyang:
As mentioned earlier, people are particularly keen on understanding how this year's economic and social development targets will be met, and your question is closely tied to this topic. We believe that to achieve this year's economic and social development goals, it is necessary to focus on policy efforts, but even more crucially, to stimulate the internal momentum of various business entities. Once the internal momentum is boosted, it will continuously give full play to its supporting role. In recent years, the CPC Central Committee and the State Council have given considerable attention to issues affecting businesses, especially small- and medium-sized enterprises (SMEs) and private companies. We have consistently pushed for solutions and made significant progress. Not long ago, General Secretary Xi Jinping attended a symposium for private enterprises, where he delivered an important speech. I believe everyone can perceive the concern and emphasis that the CPC Central Committee has placed on the development of the private sector. According to the requirements of the government work report, a lot of work will be done this year to stimulate the vitality of various business entities and boost the confidence of enterprises, especially private companies. Specifically, this will be achieved by solidly implementing the policies and measures that have already been introduced, focusing on three key areas: enhancing the business environment, reducing burdens and optimizing services.
Improving the environment means continuously investing significant resources to create a market environment with fair competition and maintain a stable, consistent policy environment. This is also an aspect that many enterprises are eagerly anticipating. For example, we need to guide more private investment toward major infrastructure and public wellbeing projects. We will also launch special initiatives to regulate enterprise-related law enforcement, with a focus on tackling arbitrary charges, fines, inspections and seizures. We will take resolute steps to prevent unauthorized cross-jurisdictional and profit-driven law enforcement.
Reducing burdens on businesses means helping them operate with ease by intensifying efforts to settle overdue payments owed to enterprises. Overdue payments include debts owed between businesses and those owed by governments to enterprises, with various entities owing each other across the board. This year, measures will be taken to address these issues. We will arrange local government special-purpose bonds to reduce overdue payments owed by local governments to enterprises, intensify efforts to tackle this issue at the source, and take stronger punitive actions against those who act in bad faith. Additionally, we will implement long-term mechanisms to address this issue. In fact, the State Council has already conducted research, and a series of strong measures will be implemented in due course. We need to increase financing support for private enterprises and small and micro businesses and make continued, intensive efforts to resolve the difficulties they face in accessing affordable financing.
Optimizing services means providing high-quality government services that better support the development of enterprises. The State Council has decided to take advancing one-stop government services as a leverage to improve the efficiency of government services. This is not merely a slogan but a concrete policy measure and a meaningful service initiative. The State Council has put in place specific measures and issued guidelines, and we will continue to work to ensure the implementation of those measures. We will continue to upgrade government services across all levels of government and establish mechanisms to enhance regular communication and exchanges between governments and businesses. For example, some local government officials hold enterprise symposiums, and these practices should be institutionalized to provide business leaders with a stable and efficient channel for engaging with government officials. We should conduct service-oriented administration. That's all from me. Thank you for your question.
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Cover News:
Developing a unified national market is a systematic project that involves a wide range of areas and numerous factors to consider. The government work report has outlined specific plans for this initiative for two consecutive years. What steps will be taken next? Thank you.
Shen Danyang:
I'd like to invite Mr. Chen to answer this question.
Chen Changsheng:
Thanks for your question. The CPC Central Committee and the State Council attach great importance to developing a unified national market. As we know, China has a vast market with a population of over 1.4 billion. Even a 1% share of demand equates to a significant market of 14 million people. From a macroeconomic perspective, China sees nearly 50 trillion yuan in annual consumption, more than 50 trillion yuan in investment, and over 20 trillion yuan in imports of goods and services each year, reflecting a massive scale. China is currently transitioning from a per capita GDP of $13,000 to $20,000 as it moves to the next stage of development. Judging from international experience, this stage also releases significant demand potential. Regarding supply conditions, China maintains a vast and diverse production factor and resource market, a comprehensive industrial system and a robust transportation and logistics network. These are our unique advantages. If localities focus on self-protection, engage in small-scale circulation, and create fragmented, isolated markets, enterprises will be unable to compete effectively, and the advantages of economies of scale will be squandered. This approach is equivalent to "undermining one's own potential."
Making thorough efforts to develop a unified national market involves removing bottlenecks and obstacles that impede economic flows, maximizing the market's decisive role in resource allocation, better leveraging government functions, and effectively boosting the domestic economy.
Specifically, while continuing to implement guidelines on developing a unified national market and strengthening the implementation of regulations on fair competition review, our priority this year can be summarized as "five integrations and one elimination." The "five integrations" refer to actively promoting unified foundational institutions and rules, unified and interconnected market facilities, a unified production factor and resource market, a unified goods and services market, and unified market supervision. At the same time, further regulation of local governments' economic promotion and investment attraction practices is needed, along with a comprehensive effort to address rat race competition and genuinely eliminate harmful local protectionism.
In this process, we should attach equal importance to efforts in both establishing new systems and abolishing old ones. Abolishing old systems means resolutely eliminating local protectionism and market fragmentation. This year, strong efforts will be made to address the practice in some regions of indirectly requiring out-of-town enterprises to establish local branches, a requirement that many businesses consider highly costly. Additionally, discriminatory provisions affecting market access remain, and enterprises continue to face obstacles when exiting the market. These issues must be addressed decisively. Regarding the establishment of new systems, a new revised version of the negative list for market access will be introduced. Additionally, bidding and tendering systems and mechanisms will undergo reform and improvement. This year, specific measures will be introduced across three dimensions: "what is required, what is prohibited, and what is encouraged." These measures aim to guide localities in fully leveraging their comparative advantages and achieving differentiated competition and development. Finally, it should be emphasized that developing a unified national market is intended to enhance our participation in the global division of labor. China is a large market that is open to the world, not one that operates in isolation behind closed doors. The developing of a unified national market across China means purchasing from and selling to all parts of the country. Additionally, it means buying from and selling to the entire world. Thank you.
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Kyodo News:
My questions are about the AI Plus initiative first mentioned in the 2024 government work report. Over the past year, China's AI sector – particularly its private industry – has made remarkable progress. Global attention has focused on innovations such as DeepSeek's generative AI and Unitree Robotics' AI-powered robots. This year's report also mentions the AI Plus initiative. What development blueprint has the Chinese government outlined for this initiative? What policies are being prioritized to support this emerging field? Additionally, global competition in AI is intensifying. What strategies is China considering for collaborative development with international partners, such as Japan? Thank you.
Shen Danyang:
These questions all pertain to AI-related topics. I would now like to invite Mr. Chen to address them collectively.
Chen Changsheng:
Thanks for your questions. First, your Chinese is very good. AI is a hot topic that has captured the world's attention. Last year's government work report first proposed the implementation of the AI Plus initiative. As you have seen, particularly around the Spring Festival, China's AI sector has indeed accelerated thanks to the collaborative efforts of innovation-driven high-tech enterprises, research institutions, and governments at all levels. For example, DeepSeek has gained global fame, and Unitree Robotics performed a traditional Yangge dance at the Spring Festival Gala. Everyone is wondering why the "Six Little Dragons of Hangzhou" (DeepSeek, Unitree Robotics and other four emerging tech companies in the city) have suddenly become so popular. Many AI applications are rapidly advancing in their implementation, and there is great excitement about them.
Recently, there has been a growing awareness of the positive trend in the international capital market toward re-evaluating Chinese assets. This phenomenon offers a distinct perspective on how AI drives economic development. This year's government work report proposes to continue promoting the AI Plus initiative, aiming to capitalize on the breakthrough in AI technology. It seeks to fully integrate China's digital technologies with its manufacturing strengths and market scale, drive the adoption of large-scale AI models across the board, and aim to bring AI into every household and empower every sector. We have noted that relevant departments are stepping up efforts, focusing on the following areas of work this year.
First, in terms of empowering industrial development, AI should be extensively utilized across the industrial, agricultural and service sectors. This should involve actively supporting the development and application of large-scale AI models in specific industries, ensuring that AI effectively drives the transformation and upgrading of industries, as well as empowers new quality productive forces.
Second, in terms of terminal applications, Premier Li Qiang specifically mentioned in the report this morning that we should vigorously develop next-generation intelligent terminals, including intelligent connected vehicles, AI-enabled smartphones and computers, and intelligent robots. Developing AI terminals not only leverages our manufacturing strengths to accelerate commercial implementation but also aligns more closely with people's needs, enabling them to enjoy intelligent living sooner.
Third, in terms of scenario cultivation, this year will witness the rollout of demonstration initiatives on the large scale application of new technologies, products, and scenarios. Provided that usage is safe, AI applications will be accelerated in areas such as the low-altitude economy, education and training, medical services, and health care. In this process, it is essential to prevent unnecessary private deployment and a project-based approach, which could lead to market fragmentation. The benefits of large-scale application, rapid iteration and continuous upgrading should be fully utilized to encourage a harmonious interaction between technological innovation and market applications.
In addition, the development of AI requires continuing breakthroughs in core technologies in key areas, accelerating the development and utilization of data, optimizing the layout of national computing resources, and so forth. AI talents, especially younger ones, should be supported by providing them with additional resources, encouraging them to take risks and innovate freely, and creating a more dynamic innovation ecosystem and an inclusive environment that enables them to excel.
Let's turn our attention to international cooperation. AI governance is a shared challenge for countries worldwide, requiring global efforts that include international cooperation to which Japan should contribute. In 2023, China released the Global AI Governance Initiative, advocating for a people-centered approach and the principle of developing AI for good, with the aim to ensure that AI develops in a direction that truly benefits human civilization. Furthermore, we advocate for the equal, fair and open use of AI for all countries, attaching great importance to the establishment of ethical principles for AI. China has expressed its support for coordinating international efforts within the United Nations framework to address issues concerning AI development, security and governance. Throughout history, technological progress has consistently played a crucial role in breaking down barriers and dismantling protectionism in all its forms. We hope that, in the current international context, AI will bring positive momentum that promotes cooperation and enhances multilateralism. Thank you.
Shou Xiaoli:
Two journalists have their hands raised. We will take the last two questions, please.
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The Poster News APP:
This year's report has introduced many new measures to ensure and enhance people's well-being, which the public is eagerly anticipating. Could you provide a review and interpretation of the main aspects? Thank you.
Shen Danyang:
I'll answer this question. As you noted, this year's government work report has introduced measures aimed at ensuring and improving public well-being, which the public is eagerly awaiting. The measures proposed in the report are comprehensive, encompassing policies designed to promote income growth through various channels. These policies focus on enhancing earnings for low- and middle-income groups by reducing their financial burdens. The report includes strategies to improve agricultural profits, revitalize rural development, and increase rural incomes. Efforts will also be strengthened to stabilize and expand employment opportunities. Moreover, the report recommends enhancing basic medical and health services and improving regulatory oversight to ensure school meal and food delivery safety. These initiatives will be worth the wait. I will list a few here.
In terms of promoting employment, the report proposes increasing the coordination of funds and resources, with a focus on supporting industries with large employment capacities and groups that require stronger support. For example, it is necessary to properly address the employment issue for this year's 12.22 million college graduates, ensuring graduates find employment sooner and their parents can rest assured. It is now March, the prime time for college graduates to look for jobs. There is a saying: "Golden March, Silver April." Employers are conducting spring recruitment on campuses, and efforts should be made to organize it well and provide good services. We should spend money where it's needed, and strengthen publicity and promotion as appropriate. Some plans and arrangements are already in place. Furthermore, support should continue to be strengthened for groups such as those lifted out of poverty and migrant workers. In response to the prominent social issue of structural unemployment, large-scale vocational skills improvement training initiatives will be carried out this year. Structural unemployment means that, on one hand, some people cannot find work, while on the other hand, some positions cannot find suitable candidates. For example, there are relative shortages of workers in sectors like domestic services and elderly care, as well as operators in fields related to big data and AI, and maintenance personnel for NEV-related equipment. Targeted vocational skills training should be conducted to address these structural unemployment challenges, and we need to put efforts into this. Additionally, it is necessary to accelerate the establishment of a skills-oriented salary distribution system, supporting people in obtaining better jobs and higher incomes through skill enhancement.
In terms of social security, this year's Report on the Work of the Government proposed a series of measures to increase financial subsidies. For example, this year, the per capita financial subsidy for residents' medical insurance will increase from 670 yuan to 700 yuan, and the per capita financial subsidy for basic public health services will rise to 99 yuan. The basic pension for retirees and the minimum basic pension for urban and rural residents will be appropriately increased, benefiting 320 million people. Support and assistance for disadvantaged groups, such as those receiving subsistence allowances and people with disabilities, will continue to be strengthened. These areas all require financial expenditure, and compared to previous years, the fiscal investment in them this year is unprecedented. The public will benefit greatly, making this effort highly worthwhile.
The report also proposes a series of supportive measures for issues related to the elderly and child care that are of public concern. For example, in response to the varying needs of elderly, it proposes advancing community-supported at-home elderly care, strengthening care for functionally impaired elderly individuals, increasing support for assisted catering services for the elderly, and setting requirements for improving geriatric medicine and enhancing barrier-free, age-friendly facilities. The report also proposes measures such as issuing childcare subsidies, vigorously developing integrated childcare services, and gradually implementing free preschool education to strengthen support for childbirth and help alleviate the burden of childbearing, parenting and education on families. These measures are widely welcomed and eagerly anticipated.
There are many such measures, but I won't list them all. Thank you for your question.
Shou Xiaoli:
The last question, please.
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ThePaper.cn:
The value of good policies lies in taking action and the crucial aspect is their implementation. How will the policies proposed in this year's report be implemented and deliver effective results? Thank you.
Shen Danyang:
I will address this question. The worth of any plan lies in its implementation. The State Council started early and is working diligently to ensure the effective execution of this year's government agenda. After the Spring Festival, a plenary meeting of the State Council was convened for deployment and mobilization. After the conclusion of the "two sessions," the State Council will convene another plenary meeting for further deployment, and hold an executive meeting to break down the tasks outlined in the government work report. Overall, the aim is to ensure the effective implementation of the policies in this year's report by strengthening collaborative coordination, promoting pragmatic innovation, improving administrative efficiency, and refining incentive and assessment measures. This involves many specific mechanisms and supervisory measures, and it is expected that more significant results will be achieved. For example, to promote the implementation of policies benefiting enterprises and the public, the first step is to further advance "one-stop government services." Since last year, the State Council has introduced 33 key initiatives in three batches, including business relocations, newborn registrations, housing provident fund loans, and trade-in subsidy applications. These are being systematically redesigned to offer a "one-place, one-window, one-network or one-submission" experience. The feedback from all sectors has been positive. The next step will be to include more items on the list and improve both online and offline services, thereby enhancing policy implementation efficiency and boosting convenience for the public and businesses in handling affairs. Another example is in motivating officials to focus on implementation. This requires both an improved evaluation system to stimulate the internal driving power to get things done, and a sustained effort to address formalism and reduce unnecessary burdens at the primary level. This includes cutting down on repetitive, fragmented and cumbersome inspections and assessments directed at the public, thereby allowing officials to dedicate greater attention to practical work.
Of course, the implementation of various policy measures requires the joint efforts of all sectors of society, which makes the promotion and interpretation of this year's government work report essential. The Research Office of the State Council has specifically organized the compilation of a series of reading materials, including guidebooks for the government work report, study Q&As, and face-to-face discussions on hot topic policies. This is work that is carried out every year. These supplementary reading materials will be published soon by the People's Publishing House and China Yan Shi Press. We hope they will provide useful reference for everyone to study the report, understand the report, and effectively implement the work. I would also like to take this opportunity to ask all journalist for your attention and support. That's all from me. Thank you.
Shou Xiaoli:
Thank you to both of today's speakers, and thank you to all the friends from the media. Today's briefing is hereby concluded. Goodbye, everyone.
Translated and edited by Liu Sitong, Li Huiru, Liu Caiyi, Li Xiao, Yang Chuanli, Wang Xingguang, Zhang Tingting, Yan Bin, Mi Xingang, Wang Wei, Yuan Fang, Wang Yanfang, Zhou Jing, Ma Yujia, Huang Shan, David Ball, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.
