Full Transcript of Key Presser on Package Policies to Boost Chinese Economy
China saw its biggest stock “euphoria” in over a decade thanks to a triumvirate of stimulus measures released by the country’s central bank late September. And on Oct. 8, a highly-anticipated presser, attended by a panel of senior officials from the National Development and Reform Commission (NDRC), made public a slew of policy measures designed to bring the economy back on track and hit its GDP growth target for the year.
Sinical China has made a full English transcript of the press conference, with key points emphasized in bold:
Shou Xiaoli (Director General of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO):
Good morning, ladies and gentlemen. Welcome to the SCIO press conference. Today, we are very pleased to invite Mr. Zheng Shanjie, head of the NDRC, to introduce the relevant situation of "Systematically Implementing A Package of Incremental Policies to Solidly Promote Economic Growth, Structural Optimization and Sustainable Momentum of Development" and answer the questions. Mr. Liu Sushe, Mr. Zhao Chenxin, Mr. Li Chunlin, and Ms. Zheng Bei, deputy heads of NDRC, were also present at today’s press conference. Let’s give the floor to Zheng Shanjie.
Zheng Shanjie (Head of the NDRC):
Friends from the media, good morning! It gives me great pleasure 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 discuss the current economic situation, make plans for future economic work, and introduce a package of incremental policies, which manifested that the Party’s Central Committee with Comrade Xi Jinping at its core attaches great importance to economic work, and has the confidence and determination to promote the sustained recovery of the economy. On Sept. 29, the State Council held an executive meeting to study the specific implementation of the package of incremental policies. Today, I would like to update you on the complete implementation of the decisions and arrangements made by the CPC Central Committee and the State Council, as well as the systematic implementation of the set of incremental policies. After that, my four colleagues and I will be available to answer any questions you may have. I will be first covering two main aspects.
1. The current economic situation
We believe that to truly understand the reality of China's economy, it is essential to adopt a comprehensive, objective, and composed approach. This involves considering the overall situation and development trends, while examining both the present and the future. In the grand scheme of things, in a rapidly evolving domestic and international landscape, China's economy has demonstrated resilient and stable growth while consistently advancing. We have made substantial strides in cultivating new high-quality productive forces, safeguarding the welfare of our citizens, and identifying and addressing potential risks in critical areas. These efforts have propelled the achievement of high-quality development and sustained overall social stability.
China's economy can be characterized by two main factors: stability and progress. "Stability" is evident in the economic market where agricultural production is steady, with expectations for a good harvest of grain this year. In the first eight months, the added value of large-scale industrial enterprises increased by 5.8 percent. Output of new energy vehicles and integrated circuits also saw significant increases. The service industry experienced stable growth, with the production index increasing by 4.9 percent. Additionally, investments and consumption continued to grow, with a notable increase in investment in the manufacturing industry. Yuan-denominated exports grew by 6.9 percent in the first eight months. The employment situation remained stable with 9.44 million new urban jobs created in the first eight months. Consumer prices rose 0.2 percent from a year earlier. "Progress" is evident in the optimization of structure. In the first eight months of this year, high-tech manufacturing and equipment manufacturing saw increases in added value by 8.9 percent and 7.6 percent respectively. The demand structure for the three major industries is improving, and breakthroughs are being made in some key areas. Urbanization and coordinated development among regions are making further progress, and major economic provinces are effectively playing a leading role.
While recognizing the achievements, achievements and highlights of economic development, we also face up to the difficulties and problems that exist. On the other hand, the external environment has become more complex and severe. According to the latest forecast of the International Monetary Fund (IMF), the global economy will grow by 3.2 percent this year, which is lower than last year. Major economies are experiencing weak growth momentum, heavy debt burdens, recent interest rate cuts, marked fluctuations in international markets, rising global trade protection, and increasing uncertainties and destabilizing factors. All these will adversely affect China through trade, investment, finance and other channels. Since the third quarter, major economic indicators such as industry, investment and consumption have fluctuated, some industries are "internal" competition, some enterprises are not adapted to optimization, upgrading or transformation, development and change, some production increases do not increase income, some production operations are difficult, and risks and hidden dangers are still large in some areas.
Simply put, the underlying factors driving China's economic growth, such as its huge market potential and strong economic resilience, remain unchanged. Recent improvements in market sentiment, including a rise in the purchasing managers' index in the manufacturing sector, a thriving stock market, and strong consumer activity during the National Day holiday, can be attributed to the continued implementation of existing policies and the introduction of new ones. As a result, China is confident in maintaining stable and robust economic growth and reaching its growth targets for the year.
2. Consideration for the implementation of the package of incremental policies
In response to the new situation and problems in the current economic operation, the CPC Central Committee and The State Council made scientific decisions and acted decisively. They implemented the stock policy effectively and introduced a package of additional policies in five aspects: increasing counter-cyclical adjustment of macro policies, expanding domestic effective demand, providing more assistance to enterprises, promoting the stabilization of the real estate market, and boosting the capital market. These measures aim to promote sustained economic recovery. The government not only focuses on solving current difficulties and problems, but also pays attention to addressing major issues in medium- and long-term economic development. This approach aims to strengthen the foundation for long-term and sustainable development and promote high-quality development.
The package of incremental policies reflects “three key areas of more attention”: to improving the quality of economic development, supporting the healthy growth of the real economy and business entities, and coordinating high-quality development with high-level security. The planning and formulation of these policies also demonstrate “four adherences”. First, we will adhere to a goal-oriented approach by aligning with annual targets and utilizing ample policy space to stimulate greater development potential. Second, we will adhere to a problem-oriented approach by addressing concerns of business entities and society, focusing on economic and social development, as well as challenging issues faced by enterprises. This entails implementing more targeted measures. Third, we will adhere to a systematic approach by coordinating policies in areas such as finance, consumption, investment, real estate, stock market, employment, and people's livelihood. This ensures greater consistency and strengthens policy synergy. Fourth, we will adhere to the combination of short-term and long-term policies, ensuring the cohesion between this year's and next year's policies, so as to promote a sustained, steady, and healthy economic development, and ensure the successful conclusion of the 14th Five-Year Plan.
The implementation of the package of incremental policies is a comprehensive and systematic task that needs to be more targeted, precise, and effective and sustainable. Specifically, there are five "targets." First, in response to the downward pressure on the economy, we will strengthen counter-cyclical adjustment of macro policies and continue to exert greater force in all aspects. Second, in response to the lack of effective domestic demand and other problems, the policy of increasing domestic demand will focus more on improving people's lives and promoting consumption, and actively give play to the effective role of investment in driving domestic demand. Third, in view of the current production and operation difficulties of some enterprises, we will step up efforts to provide assistance to enterprises, effectively optimize the business environment, and help enterprises tide over difficulties. Fourth, in response to the continued weakness of the property market, we will adopt comprehensive policies and measures to prop up the real estate market. Fifth, in response to problems such as the stock market volatility in the early stage, we will introduce a series of effective measures to boost the capital market.
In the next step, we will work with all departments and regions to fully implement and speed up the implementation of the decisions and deployments of the CPC Central Committee and the State Council, systematically implement a package of incremental policies, and leverage a coordinated approach to address implementation bottlenecks, so as to solidly promote economic growth, structural optimization and sustainable momentum of development. We will strive to see more results within the year, and lay a solid foundation for the successful conclusion of "14th Five-Year Plan" in the next year and even a good start of the "15th Five-Year Plan". I would like to share these updates with you. Thank you.
Shou Xiaoli:
Thanks to Director Zheng. Let’s begin Q&A. Please introduce your news agency before your question. Please raise your hands if you have any questions.
Journalist from CCTV:
Good morning, Director Zheng. You have briefed us on the implementation of the package of incremental policies deployed at the meeting of the Political Bureau of the CPC Central Committee, including coordinating the fiscal, financial, consumption, investment and other areas. Could you please elaborate on the specific measures to implement the package of incremental policies? Thank you.
Zheng Shanjie:
Thank you for your question. It is actually a very systematic and comprehensive question. In fact, it is also an issue of particular concern to everyone recently. Just now, I have briefed you on the main considerations of the incremental package policy. Now, I would like to elaborate on the specific measures in five aspects.
1. Implementing macro policies more effectively
First, we will intensify counter-cyclical adjustment of macro policies. We will strengthen overall coordination and systematic integration of macro policies on fiscal taxation, monetary and financial services, investment and consumption, and income distribution, strengthen coordinated innovation of policy tools, ensure the timing and effectiveness of policy implementation, and amplify the effect of policy combinations. We must ensure necessary government expenditure, accelerate the pace of expenditure, and increase its positive role in promoting economic development. We will do more to support local governments in carrying out debt swaps to defuse debt risks. We will lower the required reserve ratio, implement aggressive interest rate cuts, support large state-owned commercial banks in replenishment of core tier 1 capital, and create a better financial environment for investment and financing of business entities and the implementation of macro policies. Recently, we have introduced the policy of lowering the required reserve ratio and interest rate, and other financial policies are also on the way.
Second, we will accelerate the implementation of major reform measures. The Third Plenary Session of the 20th CPC Central Committee identified more than 300 key reform measures, and all tasks are being implemented one by one in an orderly manner. We will accelerate the introduction of a number of mature and accessible reform measures conducive to sustained and healthy economic development, such as formulating a unified national guidelines on building a large market, issuing a new version of the negative list for market access, establishing a mechanism for future industrial input growth, improving the system for promoting deep integration of the real economy and the digital economy, and issuing guidelines on improving the social credit system. Besides, we will step up efforts to attract and stabilize investment, further expand independent opening up, revise and expand the catalogue of industries to encourage foreign investment, launch a new batch of major foreign investment projects, and implement a more open visa-free transit policy.
Third, we will strengthen the consistency of our macro policies. We will make good use of the working mechanism of consistency assessment to improve the consistency and matching of policy objectives, tools, intensity, timing and pace in various fields. Before the policy is introduced, it should be fully demonstrated through consistency evaluation. Policy implementation or adjustment should be consistent with macro policy orientation. After the implementation of the policy, the effect of the policy should be reviewed and evaluated in a timely manner. Throughout the whole process, those inconsistent with the macro-policy orientation should be promptly adjusted or suspended
2. Further expanding domestic demand
In terms of consumption, we will focus on promoting consumption and improving people's lives, increasing the incomes of low - and middle-income groups, and implementing actions to boost consumption. There are three specific points. First, we will increase support for specific groups. Before the National Day, one-time living allowances were provided for people in extreme poverty, orphans and other poor people. We will raise student financial aid standards and expand the coverage of policies, increase the amount of state loans for undergraduate and graduate students, and lower loan interest rates. Second, we will combine the "Two New" campaign to promote the continued expansion of commodity consumption. Large-scale equipment renewal and the replacement of old consumer goods with new ones will not only help release the potential of demand, but also promote energy conservation and carbon reduction, and promote comprehensive green transformation. At present, the implementation rules for replacing old consumer goods with new ones have been fully promulgated, funds have been fully issued, and policies have been fully launched. Retail sales of passenger cars have rebounded significantly, and sales of home appliances have turned from falling to rising. We need to step up the implementation of relevant policies to promote a sustained increase in commodity consumption. Third, we will increase consumption of elderly care, childcare and other services. Supporting the elderly and raising children is also a common concern of society. We will support and standardize the development of the elderly care and childcare industries by nongovernmental forces, promptly improve the policy system for supporting fertility, and improve public services for basic fertility and children's medical care. New forms of consumption, such as digital consumption and green consumption, should be fostered to make the supply side more adaptable to medium - and high-end demand.
In terms of investment, we will focus on expanding effective investment and accelerating the formation of physical workload. There are three specific points. First, we will make full use of all kinds of funds this year. At present, the 700 billion yuan of central budget investment has been fully allocated, and the 1 trillion yuan of ultra-long special treasury bonds for "Two Major" construction (implementation of major national strategies and the construction of security capabilities in key areas) and the "Two New" campaign have been fully allocated to projects and localities. We are now accelerating project construction and fund disbursement. We will accelerate the issuance and use of local government special bonds to support project commencement and construction. Second, we will plan in advance and issue a list of part of next year's "Two Major" construction projects and central budget investment plan. After sorting out, there is a large demand for incremental funds in areas such as continued infrastructure construction, urbanization of agricultural transfer population, high-standard farmland construction, underground pipeline network construction, and urban renewal. Next year, we will continue to issue ultra-long-term special treasury bonds and optimize their use to support "Two Major" construction. We will allocate in advance 100 billion yuan of central budget investment plan and 100 billion yuan of "Two Major" construction project list for next year within this year, to support localities in accelerating preliminary work and early implementation. At the same time, an important related task is to accelerate the promotion of people-oriented new urbanization construction. Third, we will optimize the implementation of major investment policies. We will expedite research on appropriately expanding the fields, scale and proportion of special bonds used as capital, and promptly introduce specific reform measures to reasonably expand the scope of support for local government special bonds. We will further stimulate private investment enthusiasm, implement well the new mechanism for government and social capital cooperation, and support social capital participation in the construction of new infrastructure and other fields.
3. Increasing assistance to enterprises
First, we will standardize law enforcement and regulatory behavior related to enterprises. We will further standardize the administrative law enforcement behavior of administrative law enforcement units related to enterprises, adopt more inclusive and prudent supervision and flexible law enforcement methods, prohibit illegal cross-regional law enforcement and profit-driven law enforcement, and prohibit arbitrary fines, inspections and seizures. We will promptly remind localities with abnormal growth in fines and confiscations, and conduct supervision when necessary. We will accelerate the legislative process of the law on promoting private economy to create a good environment for the development of the non-public sector of the economy.
Second, we will clarify follow-up arrangements for phased policies in advance. According to sorting out, some policies such as tax and fee support, unemployment insurance assistance for enterprises to stabilize employment, and skill improvement subsidies will expire at the end of this year. Relevant departments will, based on research and evaluation, accelerate clarification on whether policies will continue to be implemented, and if so, promptly clarify the duration of continued implementation. Policies that are beneficial to enterprise production, operation and healthy development will not be suspended or reduced.
Third, we will strengthen factor allocation guarantees. The policy of loan continuation without repayment of principal has been expanded from small and micro enterprises to medium-sized enterprises on a phased basis. This policy has been introduced, and more enterprises will enjoy the benefits. Recently, the NDRC and the National Financial Regulatory Administration have taken the lead in establishing a coordination mechanism to support financing for small and micro enterprises, guiding financial institutions to provide financing support in accordance with market-based principles, and striving to achieve "lending as much as possible". Besides, we are studying to include a batch of eligible major projects in the scope of separate accounting for energy consumption during the 14th Five-Year Plan period, and encouraging localities to increase renewable energy consumption through purchasing green electricity certificates.
4. Stabilizing the real estate market
We will adopt systematic and comprehensive measures to strictly control the increase, optimize the stock, and improve the quality of commercial housing construction. We will increase loan issuance for "white list" projects, use special bonds and other means to support the revitalization of existing idle land, adjust housing purchase restriction policies, release rigid and improvement-oriented housing demand, accelerate the digestion of existing commercial housing inventory, lower interest rates on existing housing loans, expedite the improvement of land, fiscal, financial and other policies, and accelerate the construction of a new model for real estate development. Policies such as lowering interest rates on existing housing loans have been introduced. Some cities have completely lifted purchase restrictions, while others have further reduced restricted areas or relaxed purchase conditions. Other policies are also being actively planned and promoted.
5. Striving to boost the capital market
Relevant departments will adopt powerful and effective comprehensive measures to vigorously guide medium and long-term funds to enter the market, unblock channels for social security, insurance, wealth management and other funds to enter the market, support mergers and acquisitions of listed companies, steadily promote the reform of public funds, and study and introduce policy measures to protect small and medium investors. Currently, various policies are being accelerated for introduction.
In the next step, we will closely track changes in the situation, evaluate the effects of policy implementation in real time, promptly study new incremental policies, do a good job in policy pre-research and reserve, coordinate policy and work connections for this year and next year, and solidly promote economic stability and improvement, structural optimization, and sustained improvement in development momentum. Thank you!
Journalist from Cover News:
Director Zheng just mentioned the need to expand effective investment. What specific policies and measures will be put into practice to ensure that investment yields tangible results as quickly as possible? Thank you.
Zheng Shanjie:
This question will be answered by my colleague, Deputy Director Liu Sushe.
Liu Sushe (Deputy head of the NDRC)：
Thanks for your question. Since the beginning of this year, we have focused on key areas and crucial links, centered on expanding effective investment, given play to the guiding and driving role of government investment, and fully mobilized the enthusiasm of private investment. Let me share with you a set of data.
In terms of government investment, most of the nearly 6 trillion yuan of government investment this year has been implemented in specific projects, which are now accelerating the formation of more physical workload. The 700 billion yuan of central budget investment for this year has been allocated, with a project commencement rate of 58 percent. The 700 billion yuan for "Two Major" construction from the 1 trillion yuan ultra-long-term special treasury bonds has also been fully allocated to projects, with a project commencement rate of 50 percent. Of the 3.12 trillion yuan of local government special bonds used for project construction this year, 2.83 trillion yuan had been issued by the end of September, with an issuance rate of 90 percent and a project commencement rate of 85 percent. All projects from the 1 trillion yuan of national bonds issued in the fourth quarter of last year for post-disaster reconstruction and improving disaster prevention, mitigation and relief capabilities had started construction by the end of June this year, with 770 billion yuan of investment completed so far. In terms of private investment, since the beginning of this year, we have introduced 1,635 major projects to private capital, of which 441 projects have attracted private capital participation with a total investment of 344.8 billion yuan. Private capital participation in major infrastructure projects such as nuclear power and railways has also made new progress. We have also organized and screened to form the first batch of 189 key national private investment projects, helping to coordinate and resolve major issues such as funding and factor guarantees. In addition, we have standardized the implementation of the new mechanism for government and social capital cooperation, focusing on policy orientations such as user payment, full adoption of concession models, and priority support for private enterprise participation. We have announced a batch of demonstration projects to the public, involving a total investment of 141 billion yuan.
According to the guide by the Political Bureau meeting of the CPC Central Committee and the deployment of the State Council executive meeting, in the next step, we will work with relevant departments to coordinate incremental and stock policies for expanding effective investment, and promote steady and orderly investment growth. Let me elaborate on the implementation work from five aspects.
First, we will expedite the advance allocation of part of the "Two Major" construction project list and central budget investment plan for 2025. Supporting "Two Major" construction is a major decision and deployment made by the CPC Central Committee with a view to building a strong country and national rejuvenation. In 2025, ultra-long-term special treasury bonds will continue to be issued with optimized direction, and "Two Major" construction will still maintain strong arrangements. Currently, the NDRC is working with relevant departments and localities to plan and reserve a batch of major "Two Major" construction projects from top to bottom, while simultaneously accelerating policy, planning, and institutional mechanism innovation and other "soft construction". By continuously improving the input mechanism and increasing input efficiency, we will coordinate "hard investment" and "soft construction" to jointly achieve the "Two Major" goals. Central budget investment will continue to support basic, public welfare, and long-term projects to accelerate the improvement of shortcomings and weak links in China's modernization construction. Considering that advance allocation of project lists and investment plans helps accelerate preliminary work and early implementation of projects, as Director Zheng just mentioned, we plan to allocate in advance 100 billion yuan of "Two Major" construction project list and 100 billion yuan of central budget investment plan by the end of this month according to procedures. The involved projects have been carefully screened by the NDRC together with relevant departments, meeting the investment direction, with mature preliminary work and meeting allocation conditions, which can quickly form physical workload within this year.
Second, we will increase efforts to promote the 102 major projects in the 14th Five-Year Plan. Of the 5,100 specific projects involved in the 102 major projects, 92% have already started construction or been completed. In the next step, we will further strengthen overall coordination, consolidate responsibilities of all parties, strengthen funding support and factor resource guarantees, promote the early start of construction for the 409 projects that have not yet started, and ensure the successful conclusion of the 102 major projects in the 14th Five-Year Plan by the end of next year.
Third, we will make full use of local government special bonds. On one hand, urging relevant localities to complete the issuance of the remaining approximately 290 billion yuan of local government special bond quota for this year by the end of October, while accelerating the implementation of projects and the use of funds for local government special bonds that have been issued, to promote the formation of more physical workload. On the other hand, in response to some prominent issues in the issuance, use and management of local government special bonds, the NDRC and the Ministry of Finance are currently working according to the deployment to expedite research on reasonably expanding the scope of support for local government special bonds, appropriately expanding the fields, scale and proportion used as capital, studying the implementation of pilot projects for autonomous project approval rights, implementing a "green channel" for continued construction projects, etc., and promptly introducing new measures to optimize and improve the management of local government special bonds.
Fourth, we will strengthen whole-process management of government investment projects. Mainly through online monitoring, on-site supervision, field verification and other methods to strengthen project scheduling, urge and guide localities and departments to organize and implement various types of government investment projects well, and accelerate project construction. At the same time, we will vigorously deepen the reform of the investment approval system, and expedite research and formulation of policy measures to further improve the government investment decision-making mechanism and increase government investment efficiency.
Fifth, we will support and encourage the healthy development of private investment. We will accelerate the improvement of the long-term mechanism for private enterprises to participate in the construction of major national projects, focusing on continuing to do a good job in promoting high-quality projects, promoting more private capital to participate in the construction of major infrastructure projects such as railways, energy and water conservancy, and accelerating the screening and formation of a new batch of key national private investment project lists. At the same time, we will standardize the implementation of the new mechanism for government and social capital cooperation, support more eligible private investment projects to issue infrastructure REITs, and deepen the pilot cooperation of investment-loan linkage. Thank you.
Journalist from the Singapore-based Lianhe Zaobao:
How does the Chinese government plan to boost private entrepreneurs' investment confidence and attract more foreign investment? What policies will be introduced to further improve the business environment? Thank you.
Zheng Shanjie:
Thank you for your question. This question will be answered by Ms. Zheng Bei.
Zheng Bei (Deputy head of the NDRC)：
This question is very important. On September 26, the Political Bureau meeting of the CPC Central Committee emphasized the need to assist enterprises in overcoming challenges, improve the enforcement of laws and regulations related to businesses, and enhance the international competitiveness of the business environment. The NDRC will prioritize addressing specific issues and collaborate with relevant departments to continually work on enhancing the business environment, with a focus on achieving three further progresses.
First, we will further improve the legal system related to enterprises. On one hand, we will accelerate the legislative process of the law on promoting private economy to legally implement the requirement of equal treatment for state-owned and private enterprises. We will accelerate the revision of the bidding law to break through local protectionism and promote fair participation of enterprises of all ownership types in market competition. We will promote the revision of regulations on guaranteeing payment of small and medium-sized enterprises to promote timely payment of accounts to small and medium-sized enterprises by government agencies, institutions and large enterprises. On the other hand, we will accelerate the clearing of laws, regulations and policies involving unequal treatment of enterprises, and eliminate institutional barriers that hinder fair competition among enterprises.
Second, we will further standardize law enforcement and regulatory behavior related to enterprises. We will promote the acceleration of improving the benchmark for administrative discretion, adopt more inclusive and prudent supervision and flexible law enforcement methods in administrative law enforcement, and avoid or reduce the impact on the normal production and operation activities of business entities. We will standardize cross-regional administrative law enforcement behavior, establish and improve the system of assistance in cross-regional administrative law enforcement, and prevent selective law enforcement and profit-driven law enforcement. We will strengthen supervision of administrative law enforcement, resolutely correct and seriously hold accountable for arbitrary charges, fines and apportionments.
Third, we will further help enterprises solve practical difficulties. We will give full play to the role of the inter-ministerial joint conference system for promoting the development and growth of the private economy, build and make good use of the comprehensive service platform for private economic development, strengthen multi-level normal exchange and communication at the national, provincial, municipal and county levels, carefully listen to opinions and suggestions from enterprises, and promote the solution of urgent, difficult and worrying problems. For example, in response to the financing problems that enterprises have reported more concentrated on, within the framework of the inter-ministerial joint conference, we have promoted the expansion of the coverage of the policy of loan continuation without repayment of principal, extending it from small and micro enterprises to medium-sized enterprises in the fields of technology, manufacturing, agriculture, etc. on a phased basis, which has improved the efficiency of loan renewal and reduced funding costs.
As for how to attract more foreign investment, just like what Director Zheng just introduced, we will adopt measures in five aspects including increasing efforts to attract and stabilize investment, further expanding independent opening up, and launching a new batch of major foreign investment projects, to encourage foreign enterprises to take root in China and win in China. Thank you.
Journalist from Reuters:
I'd like to ask if there is an estimated scale for this package of incremental policies, and what is our goal? Can we achieve the economic growth target of around 5% this year? Will the current deflationary pressure on the economy ease? Thank you.
Zheng Shanjie:
Thank you for your question. This question will be answered by my colleague, Deputy Director Zhao Chenxin.
Zhao Chenxin (Deputy head of the NDRC)：
Thank you for the question from Reuters. The answer to your question can be found in the content that Director Zheng just shared with us. For example, the study and formulation of this package of incremental policies reflects “three key areas of more attention” and embodies "four adherences". “Three key areas of more attention” means paying more attention to improving the quality of economic development, supporting the healthy growth of the real economy and business entities, and coordinating high-quality development with high-level security. "Four adherences" means that we will adhere to goal-oriented, problem oriented, and systematic approaches, and adhere to the combination short-term and long-term considerations. There are also many keywords in Director Zheng's report, such as the package of incremental policies taking comprehensive and systematic as its features. Also, in the process of implementation and execution, we need to improve targeting and precision, and enhance effectiveness and sustainability. Director Zheng has elaborated on these contents in detail. As long as we grasp these core contents, it will definitely help to understand and grasp the package of incremental policies well. The package of incremental policies is designed to fully stimulate the enthusiasm, initiative and creativity of the whole society to promote high-quality development, and ensure sustained economic recovery and improvement.
In the first half of this year, China's economic growth rate was 5%, with employment and prices remaining basically stable. Today is October 8, and the first three quarters have passed. From the situation we have grasped, China's economy in the first three quarters can still maintain an overall steady development trend with progress amid stability. As the various decisions and deployments of the CPC Central Committee and the State Council are implemented in detail, especially as the effects of the package of incremental policies continue to manifest, the vitality and momentum of development will be further released, market confidence will be further enhanced, and the foundation for high-quality development and stable economic operation will be further consolidated. We have the conditions, the ability, and more confidence to achieve the expected goals and tasks of economic and social development for the whole year. Thank you.
Journalist from Bloomberg:
I have two question, actually. My first question is on the labor market. With the changes that have been for 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 getting young people jobs. The youth jobless rate has risen to 18 percent in August. How can the government ensure full employment, as construction and other labor-intensive industries decline and be replaced with mostly automated industries such as high-tech manufacturing? My second question is just following on from what's been announced today. You said that you wanted to ensure that 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 for the question from Bloomberg. The question concerning employment will be answered by Deputy Director Li Chunlin.
Li Chunlin (Deputy head of the NDRC)：
Thank you for your question. The employment issue you mentioned is actually mentioned in the package of policies to stabilize growth that Director Zheng briefly reported earlier. Among the ultimate goals to be achieved by the "three key areas of more attention", promoting high-quality and full employment is one of the main goals.
Since the beginning of this year, various policies to stabilize growth and employment have continued to exert force, and the overall employment situation has remained stable. In the first 8 months of this year, the average urban surveyed unemployment rate was 5.2 percent, down 0.1 percentage point year-on-year. It is a very normal phenomenon for labor to flow from industries with low labor productivity to industries with high labor productivity. While technological progress is driving economic transformation and industrial upgrading, it is also giving rise to many new occupations and new employment opportunities. For example, the booming low-altitude economy has given rise to a new position of drone operator. According to estimates by relevant departments, the current talent gap for this position in our country is as high as 1 million people. Another example is the new energy vehicle maintenance industry, where the total number of employees in China is less than 100,000. Relevant departments predict that by 2025, that is, next year, the gap for professionals in new energy vehicle maintenance and research and development will reach 1.03 million people.
On September 26, the Political Bureau meeting of the CPC Central Committee made a series of clear deployments for employment work. The key to expanding employment is still development, especially high-quality development. In the next step, the NDRC will vigorously implement the employment priority strategy, strengthen macro-policy coordination and cooperation, guide the establishment of correct employment concepts, and adhere to promoting employment through development. Based on what Director Zheng just reported, let me add four points.
First, we will expand effective demand to create new growth points for employment. We will give play to the leading and driving role of central budget investment, take multiple measures to stimulate the vitality of private investment, as Director Zheng and Deputy Director Zheng Bei also mentioned private investment. We will accelerate the implementation of major measures such as "Two Major" and "Two New", and increase support for projects with good employment absorption effects. For example, the figures for this year are not yet finalized, but last year the NDRC arranged 10.9 billion yuan of special central budget investment for work-relief projects, driving nearly 290,000 low-income rural groups to find employment nearby, with per capita income creation reaching 10,000 yuan. "Two Major" and "Two New" provide a huge employment market.
Second, we will enhance the employment creation effect of emerging industries. We will develop new quality productive forces according to local conditions, cultivate and strengthen strategic emerging industries and future industries such as new generation information technology, energy conservation and environmental protection, biotechnology, new materials, and new energy, and create more knowledge and skill-based positions.
Third, we will expand employment space in life service industries. We will innovate and develop service consumption, accelerate the cultivation of new consumption scenarios, vigorously develop the silver economy, as China's aging degree is increasing year by year, and fully release the employment potential in social service fields such as elderly care, housekeeping, childcare, an Third, expand employment space in life service industries. We will innovate and develop service consumption, accelerate the cultivation of new consumption scenarios, vigorously develop the silver economy, as China's aging degree is increasing year by year, and fully release the employment potential in social service fields such as elderly care, housekeeping, childcare, and logistics. Taking the housekeeping industry as an example, there are currently about 30 million employees in China's housekeeping service industry, while the actual market demand is as high as 50 million people, especially with an extreme shortage of high-quality, high-level housekeeping service personnel.
Fourth, we will give play to the role of vocational education and skills training in promoting employment. We will coordinate multi-channel resources to increase investment in skills training infrastructure construction, guide localities to build and make good use of public training bases, industry-education integration training bases and other platform carriers, accurately match enterprise employment needs, and conduct order-based, targeted and project-based training for the broad masses of workers, enabling them to open up the path to employment and income increase with their skills. That’s my answer. Thank you.
Zheng Shanjie:
We are also very concerned about the employment issue you just raised. As Deputy Director Li Chunlin just mentioned, there are increases and decreases, some may be transferred out, while some are still in short supply. There are some structural issues, and we are also taking measures to address these problems. I noticed that your question also involved issues related to special bonds. This part will be answered by Deputy Director Liu Sushe.
Liu Sushe:
Regarding the special bond issue, it has been reported in the initial briefing that this year's special bonds used for project construction amount to 3.12 trillion yuan, of which 2.83 trillion yuan had been issued by the end of September, with the remaining 290 billion yuan currently being urged to be issued by localities by the end of this month.
In the next step, we will focus on making full use of and giving play to the effectiveness of special bonds, ensuring that special bond projects start construction as soon as possible, and ensuring that special bonds truly play their role. At the same time, the NDRC and the Ministry of Finance are studying new measures to optimize and improve the management of local government special bonds. After their introduction, they will promote special bonds to play a greater role in investment. I'll briefly add these points.
Journalist from Economic Daily:
It was just mentioned that in the package of incremental policies, there is a large demand for incremental funds in the field of urban renewal. We think urban renewal includes the renovation of old communities, underground pipeline network updates, etc. What are the specific support policies, and is there any support in terms of financing? Thank you.
Zheng Shanjie:
Thank you for your question. I would like to ask Deputy Director Liu Sushe to answer this question.
Liu Sushe：
Thank you for your question. At present, China's urban development has entered a stage where incremental construction and stock renewal are equally important. It can be said that in the coming period, the task of urban transformation and renewal will become increasingly heavy. Taking the construction and renovation of underground pipeline networks, an important "inner" project of cities, as an example, relevant parties estimate that in the next five years, the total length of various types of urban gas, water supply and drainage, heating and other pipelines that need to be renovated will be nearly 600,000 kilometers, with a total investment demand of about 4 trillion yuan.
The package of incremental policies clearly states that we should strengthen key construction in urban renewal. In the next step, we will continue to coordinate and make good use of various funds in combination with our functions, arrange lists of related projects and investment plans in advance, accelerate the commencement of eligible projects, and at the same time improve and perfect a sustainable renewal and renovation mechanism. We will actively promote the upgrading and renovation of urban infrastructure, quickly fill the shortcomings of urban infrastructure, fully release the huge potential of China's new urbanization, and form new economic growth points. There are several tasks to be done.
First, we will categorically and orderly promote the implementation of renewal and renovation tasks. We will distinguish the urgency of tasks, organize and implement urban infrastructure upgrading and renovation actions according to the work idea of focusing on eliminating safety hazards in the short term, promoting the renewal of aging facilities in the medium term, and promoting the improvement of facility functions in the long term. We will prioritize the construction of projects such as urban pipeline network safety improvement, livable renovation of old residential areas, comprehensive renovation of urban villages, and safety renovation of urban transportation facilities, which involve major public safety and important livelihood protection. We will orderly promote the construction of projects such as the transformation and quality improvement of old urban areas (old factory areas) and the enhancement of urban public service functions.
Second, in the advance allocation of part of the "Two Major" construction project list and central budget investment plan for next year, priority will be given to supporting a batch of key urban renewal projects. Currently, there is a large demand for funds for urban underground pipeline networks, and many projects are quite mature. We plan to prioritize supporting a batch of key urban renewal projects in the advance allocation. In 2023-2024, the NDRC has arranged over 470 billion yuan of central budget investment, additional national debt funds and ultra-long-term special treasury bond funds to focus on supporting urban renewal projects such as the renovation of urban gas and drainage underground pipeline networks and the renovation of old urban communities. In the coming years, urban renewal will remain a key area of support for government investment, with efforts to be further increased in 2025. In the two 100 billion yuan project lists and investment plans, urban renewal accounts for a certain proportion, mainly arranging the construction of urban gas, water supply and drainage, heating and other pipeline networks, focusing on key cities and central urban areas with large population sizes and high densities, prioritizing support for projects under construction and those that can start construction in the fourth quarter of this year, promoting solutions to prominent problems such as aging gas pipeline networks, urban waterlogging, and water supply pipeline leakage. At the same time, we will continue to coordinate and increase central budget investment support for urban renewal projects such as the renovation of old urban communities, urban village renovation, and dangerous housing renovation. We will also study including urban renewal projects with certain returns, such as the renovation of old urban areas (old factory areas), into the scope of support for local government special bonds.
Third, we will actively explore and innovate financing models. Urban renewal contains huge market potential, and the investment amount of projects is relatively large. Government investment alone is far from enough, and it is necessary to establish a diversified input mechanism and make great efforts to attract widespread participation of private capital. For fields with a higher degree of marketization and stronger operational attributes, we will improve the input mechanism, increase input efficiency, and give full play to the role of market mechanisms. For fields with moderate returns and where social capital has investment willingness, we will also give full play to the role of the new mechanism for government and social capital cooperation, that is, the new PPP mechanism, as well as infrastructure REITs, to form a sustainable renewal and renovation model with government guidance, market operation and participation of the whole society. Thank you.
Journalist from Shenzhen Satellite TV Direct News:
We know that energy is an important support for economic and social development and is also very important for enterprise development. So I particularly want to ask, does the package of incremental policies have any specific arrangements for strengthening energy guarantees for major projects? Thank you.
Zheng Shanjie:
Energy is an important foundation for economic development. You have raised a very important question. I think this question should be answered by Deputy Director Zhao Chenxin.
Zhao Chenxin:
Thank you for your question. Director Zheng has emphasized the importance of strengthening the guarantee of factor allocation. Indeed, energy guarantee is a very important part of factor allocation guarantee. Energy guarantee is very important for high-quality development and can be said to be key to supporting high-quality development. To implement the decision-making deployment of the Political Bureau meeting of the CPC Central Committee on September 26, strengthen factor allocation guarantees, and help the development of the real economy, the NDRC has further clarified specific measures for controlling total energy consumption and intensity.
First, we will effectively expand the space for incremental energy use. Since the 14th Five-Year Plan period, the NDRC has clarified through improving the control policies for total energy consumption and intensity that raw material energy consumption and non-fossil energy consumption will no longer be included in energy consumption control. As we know, with the rapid development of renewable energy, the scale of energy use space that can be expanded by this policy is gradually increasing. From the current understanding of the situation, there are still many places that need to increase efforts to make good use of this policy. To this end, in this incremental policy, it is further clarified that in carrying out energy conservation reviews for fixed asset investment projects and energy conservation target responsibility evaluation and assessment, raw material energy consumption and non-fossil energy consumption should be strictly deducted, thereby guiding localities to focus on controlling fossil energy consumption, encouraging increased renewable energy consumption through purchasing green electricity certificates, thus creating incremental energy use space for economic and social development. At the same time, we will continue to increase work efforts to resolutely curb the blind and disorderly development of high energy consumption and high emission projects, effectively curb unreasonable new energy demand, and promote industrial optimization, upgrading and healthy development.
Second, we will deeply tap the potential for energy conservation in stock. At present, the scale of stock energy use in the whole society is about 10 times that of the new energy use space in the 14th Five-Year Plan period. Deeply tapping the potential for energy conservation in stock can create huge energy use space for economic and social development. We will coordinate the use of central budget investment, ultra-long-term special treasury bonds and other funding channels, combined with the in-depth implementation of the "Two New" and other work, to increase support for energy conservation and carbon reduction transformation and energy-using equipment renewal in key areas, actively guaranteeing the reasonable energy needs of traditional industry transformation and upgrading and emerging industry development through stock potential tapping.
Third, we will strengthen the implementation of separate accounting for energy consumption of national major projects. We will study including a batch of major projects that conform to the layout of national major productive forces, enhance the resilience and security level of industrial chains and supply chains, and support the development of new quality productive forces into the scope of separate accounting for energy consumption during the 14th Five-Year Plan period. The energy consumption of related projects will no longer be included in the energy conservation target responsibility evaluation and assessment scope of the provincial-level government where the project is located, strengthening energy guarantees for major projects in the national layout.
In the next step, the NDRC will continue to grasp the implementation of relevant policies, use higher-level and higher-quality energy conservation work as a starting point to effectively strengthen energy guarantees for high-quality development, and provide strong energy support for steady, healthy and sustainable economic development. That’s my answer. Thank you.
Journalist fron The Paper:
Promoting people-oriented new urbanization is a systematic project. To enable farmers who move to cities to have the willingness, ability and conditions to live in cities for a long time, what measures are there in the package of incremental policies to accelerate the construction of new urbanization? Thank you.
Zheng Shanjie:
Thank you for your question. Recently, the CPC Central Committee and the State Council issued a comprehensive document on new urbanization. Let’s invite Ms. Zheng Bei to answer this question.
Zheng Bei：
Thank you for your question. As you said, promoting people-oriented new urbanization is a systematic project. After the State Council issued the "Five-Year Action Plan for Deepening the Implementation of the People-Oriented New Urbanization Strategy" on July 28, we worked with relevant departments to quickly refine the key tasks for this year and next year, are carrying out special training at the provincial, municipal and county levels, and will launch pilot work focusing on breaking through bottlenecks and difficulties in promoting new urbanization. To accelerate the promotion of people-oriented new urbanization construction, in the package of incremental policies, we focus on increasing policy support and implementation efforts around the four major actions deployed in the five-year action plan.
First, to implement a new round of action to promote the urbanization of agricultural transfer population, we will focus on breaking through the bottlenecks and obstacles in the process of urbanization for more than 170 million migrant workers from rural areas and their accompanying family members. Targeting the problem of difficulty in settling down in large cities, we will focus on accelerating the relaxation of settlement conditions in cities with urban permanent resident populations of over 3 million, fully establishing public household registration in streets and communities, and improving the policy for settling down through renting. Targeting the issues of education and healthcare that agricultural transfer population are most concerned about, we will increase support from ultra-long-term special treasury bonds for projects such as ordinary high school construction and hospital ward renovation in cities with concentrated population inflows.
Second, to implement the action to enhance the level of urbanization in potential areas, we will focus on solving problems such as insufficient comprehensive carrying capacity of county towns and weak industrial foundations. Through local government special bonds, medium and long-term loans from policy banks and other active support, we will accelerate the construction of infrastructure and industrial supporting facilities in county towns, promote industrial docking and cooperation between central and western regions and eastern regions, and promote the implementation of a batch of major projects.
Third, to implement the action to cultivate modern metropolitan areas, we will focus on breaking through "dead-end roads" and "bottleneck roads" in intercity transportation. We will strengthen support from local government special bonds and other funds to build a batch of urban (suburban) railways, intercity railways and urban expressways, accelerate the formation of commuting circles, industrial circles and living circles, and improve the level of same-city development.
Fourth, to implement the action to enhance urban safety and resilience levels, we will focus on eliminating risks and hidden dangers in urban construction and operation. We will focus on carrying out the construction of underground pipeline networks and other "inner" projects, arrange investment project plans for next year in advance, vigorously implement urban lifeline safety projects, accelerate the improvement of flood control and drainage engineering systems, and quickly fill the shortcomings of urban safety and resilience.
New urbanization is a "multiplier" for expanding consumption and an "accelerator" for driving investment. We will work with relevant departments to give full play to the important role of new urbanization in expanding domestic demand and provide strong support for steady, healthy and sustainable economic development. Thank you!
Shou Xiaoli:
Let's move on. Due to time constraints, the last two questions.
Journalist from the SCMP:
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 ones? Is there a specific list? Thank you.
Zheng Shanjie:
Thank you, many places, many departments, including enterprises and business entities are very concerned about these issues. This question will be answered by Deputy Director Liu Sushe.
Liu Sushe:
On Sept. 26, the Political Bureau meeting of the CPC Central Committee emphasized that we should issue and make good use of ultra-long-term special treasury bonds and local government special bonds to better play the driving role of government investment. Under the current economic situation, reasonably increasing infrastructure investment will help maintain steady investment growth and promote steady and healthy economic development. Regarding your question about whether to accelerate the approval and construction of local infrastructure investment projects, from the perspective of the NDRC, there are mainly three points to considerate.
First, we need to select the right investment direction. We must focus on the needs of economic development and improvement of people's livelihoods, precisely fill shortcomings and strengthen weak links. For example, urban renewal and renovation, which we just mentioned, has great investment potential and obvious economic and social benefits, and is a key direction for local infrastructure investment in the next step.
Second, we need to do a solid job in preliminary work. Local investment projects must carry out in-depth preliminary project argumentation, adhere to evaluation before decision-making, and scientifically determine project construction plans. We should efficiently fulfill relevant project approval procedures in accordance with regulations, implement construction conditions, and ensure smooth project implementation.
Third, we need to implement project construction funds. We must fully demonstrate project funding plans, implement construction funds from various channels in accordance with laws and regulations, especially consider appropriately increasing central investment support for eligible projects, and effectively reduce the funding pressure on local governments. That’s my answer. Thank you.
Shou Xiaoli:
The last question.
Journalist from Southern Metropolis Daily:
After October, cities across China will successively enter the winter peak season for electricity, heating and gas use. How to do a good job in ensuring energy supply and supply and price stabilization of important livelihood commodities this winter? Thank you.
Zheng Shanjie:
Thank you. This is also an issue that the public is particularly concerned about. Every year we encounter peak summer and winter seasons. This question will be answered by Deputy Director Li Chunlin.
Li Chunlin:
I'm glad to answer this question. As Director Zheng said, this involves thousands of households. The National Day holiday has just passed, and it's already late autumn. Northern regions will successively enter the heating season, followed by the New Year's Day and Spring Festival holidays. This work has been comprehensively and systematically deployed at the Political Bureau meeting of the CPC Central Committee on September 26. Let me briefly answer these two questions.
Regarding energy security, the NDRC has made a series of early arrangements in conjunction with relevant parties. Overall, there is a good foundation for energy supply security. In terms of coal, national coal production continues to maintain stability, with coal storage at state-coordinated power plants above 200 million tons, with an average available days exceeding 30 days, at a historically high level for the same period, and winter coal reserves in Northeast China are relatively sufficient. In terms of power analysis, as of the end of August, the national power generation installed capacity was 3.13 billion kilowatts. On the premise that renewable energy power generation installed capacity such as hydropower In terms of power analysis, as of the end of August, the national power generation installed capacity was 3.13 billion kilowatts. On the premise that renewable energy power generation installed capacity such as hydropower, wind power and photovoltaic has exceeded half, and the uncertainty of power supply has increased, stable and reliable power supply can be achieved through strengthening intelligent dispatching and improving the level of inter-provincial and inter-regional mutual assistance. In terms of natural gas, the resource supply is relatively sufficient, with peak-shaving gas storage capacity increased by 8 billion cubic meters compared to last year, achieving full storage before winter.
In the next step, the NDRC will continue to strengthen monitoring and analysis, consolidate responsibilities of all parties, and make every effort to ensure stable energy supply. First, we will increase the production and supply of coal, natural gas and other resources, promote full power generation of various types of power units, and promote efficient consumption of new energy. Second, we will focus on increasing coal and natural gas reserves for power generation, strengthen cross-provincial and cross-regional power dispatching, do a good job in fine-tuned use of energy storage, and improve peak guarantee capacity. Third, we will prioritize ensuring energy use for people's livelihoods and minimize the impact of extreme weather and other emergencies on normal production and life. In the summer that just passed, affected by extreme high temperatures and other factors, the national maximum power load and daily maximum power consumption reached new historical highs of 1.451 billion kilowatts and 32.5 billion kilowatt-hours respectively, 106 million kilowatts and 2.4 billion kilowatt-hours higher than the 2023 peak values. Under such circumstances, China's energy and power supply remained stable and orderly. Even when affected by typhoons and flood disasters causing short-term power outages in some areas, repairs were organized immediately to restore power supply in a timely manner. With the joint efforts of all parties, energy supply during this winter's heating season can be effectively guaranteed, providing solid and strong support for the continued economic recovery and improvement and for people to spend a warm winter.
Regarding the supply and price stabilization of important livelihood commodities, currently, the market supply of important livelihood commodities nationwide is sufficient and operating steadily. Summer grain production has increased, and a good autumn harvest is expected. Pig production capacity is at a reasonable level, and the inventory of laying hens and other livestock remains high. The area of vegetables under cultivation has increased. At the same time, the finished grain and oil reserves in 36 large and medium-sized cities can meet more than 15 days of consumption, the ability to regulate pork reserves continues to strengthen, and the winter and spring vegetable reserves in northern large cities continue to improve. There is a solid material foundation for supply guarantee and price stabilization. Recently, in response to increased consumption during the National Day holiday, many places have launched affordable sales for the benefit of the people, increasing the supply of affordable vegetables and other commodities to ensure sufficient market supply and stable prices.
In the next step, the NDRC will closely monitor market dynamics, take measures in advance in combination with the characteristics of winter and key periods such as New Year's Day and Spring Festival, work with relevant parties to do a good job in autumn and winter agricultural production, consolidate local reserve responsibilities, strengthen production and marketing linkages, smooth logistics and transportation, timely release supplies, strengthen market supervision, improve emergency plans, effectively ensure the market supply of important livelihood commodities, and create a good environment for the effective implementation of incremental policies. Thank you!