The Cover:

The Central Economic Work Conference made it clear that China will accelerate the construction of major projects and strengthen the sustainability of investment growth in 2021. What specific measures will be taken to expand rational investment this year? What are the considerations and plans for supporting new infrastructure development? Thank you.

Ning Jizhe:

Last year, China became the only major economy to see positive growth, in which investment played a big role. In order to keep the economy operating within the proper range this year, we still need to give further play to the key role of investment, strengthen areas of weakness, create more investment opportunities, boost investment growth, and appropriately expand effective investment. Measures will be taken in the following five aspects: 

First, we will give play to the leading role of government investment. In 2021, 610 billion yuan will be earmarked for investment in the central government budget, an increase of 10 billion yuan from the previous year. It will be used to mobilize resources to deal with major, difficult, and urgent issues at the state level. We will actively support the renovation of old urban communities and construction in key sectors involving agriculture, rural areas, farmers, water conservancy, major infrastructure and national strategy, social undertakings, and ecological progress. Meanwhile, 3.65 trillion yuan of special local government bonds will be issued for transport, energy, agriculture, forestry, water conservancy, eco-environmental protection, social undertakings, logistics, municipal public utilities, industrial parks, and other infrastructure and public service projects that will yield a certain degree of revenue.

Second, we will give more play to the role of investment in strengthening areas of weakness and adjusting structures. Investment today will be the supply of tomorrow. We will accelerate efforts to strengthen weaknesses in such areas as infrastructure, municipal public utilities, agriculture and rural areas, public security, eco-environmental protection, public health, material reserves, disaster prevention and mitigation, as well as in ensuring people's wellbeing. We will expand investment in equipment upgrading and technological upgrading in the manufacturing sector. Last year, investment in high-tech industries grew 10.6% year on year, 7.7 percentage points higher than overall investment. This year, we will further strengthen macro guidance and coordinate industry layouts to focus on energy-efficient and environmentally-friendly sectors as well as new-generation information technology, biotechnology, and new energy. We will also increase investment in high-tech and strategic emerging industries.

Third, we will focus on new infrastructure, new urbanization initiatives, and major projects. In terms of new infrastructure, we will roll out the 14th Five-Year Plan for new infrastructure construction to boost the development of the digital economy, expand the application of 5G, as well as speed up the construction of industrial internet and data centers. As for new urbanization initiatives, we will launch an urban renewal campaign to advance the renovation of old urban communities in all aspects and promote urbanization mainly in county towns. Regarding major projects, we will expedite the progress of major projects on time, including the Sichuan-Tibet railway, the Xining-Chengdu railway, and the Dateng Gorge water conservancy project.

Fourth, we will boost the development of private investment. Last year, private investment maintained a good momentum in recovery. It registered a positive growth, accounting for 54.9% of the total investment and showing great potential. This year, we will take measures in the following three aspects: First, we will further mobilize the enthusiasm of private investment, continue to open up market access for private enterprises, support their innovative development, and encourage private capital to participate in the construction of new infrastructure, new urbanization initiatives, and major projects as well as projects to strengthen areas of weakness. Second, we will further strengthen the capacity of private investment, guide banks to increase credit support for private enterprises, and implement cost-cutting policies for micro, small, and medium-sized enterprises. Third, we will further explore new ways for private investment, extend the public-private partnership (PPP) model to more areas in a well-regulated way, and steadily carry out trials for real estate investment trust funds (REITs) in infrastructure projects to put existing infrastructure assets to good use.

Fifth, we will build up the number of projects in reserve and strengthen the guarantee of vital factors including funds. The work will focus on the following aspects: First, we will stay committed to the principle that projects are well-planned before investment. This year, we will make efforts to identify major construction tasks, plan and reserve a group of major projects which will strengthen the economic foundation, increase functions and promise long-term benefits, and accelerate the progress of preliminary work on those projects. Secondly, we will stay committed to the principle that funds follow projects. We will expedite the issuance of central budgetary investment plan and organize local governments to make high-quality preparations for projects funded by special bonds. Third, we will stay committed to the principle that production factors go with projects. We will enhance communication and coordination between departments and guarantee the land used for major national projects. Thank you.