Reuters:

How would you like to implement the reforms regarding the new "dual circulation" development paradigm during the 14th Five-Year Plan period? Why is the economic growth target for 2021 set at above 6%? What is the consideration for it? Why didn't you set an economic growth target for the 14th Five-Year Plan period? In 2021, what should we do to prevent asset bubbles, financial risks and debt risks brought about by the easy monetary policies rolled out last year? Thank you. 

Zhao Chenxin:

Thank you for your question. I think, according to what you've asked, your major concern is about reform. The first reporter also asked about reform. People are really concerned about it. Indeed, we should strive to reform with relentless efforts. As we enter the 14th Five-Year Plan period, we should give further play to the key role of deepening overall reform. At the recent 18th meeting of the central committee for deepening overall reform , General Secretary Xi Jinping emphasized five priorities for deepening reforms, including implementing a high-level of self-reliance and self-improvement, facilitating economic circulation, expanding domestic demand, as well as carrying out high-level opening-up and promoting comprehensive green transformation. These five priorities are very important. They are the fundamental principles that we will follow in future reforms.

You also asked about the macro control policies to balance economic growth while preventing risks. My understanding is as follows. Actually, Mr. Ning has talked about it. We should, on the one hand, have bottom-line thinking and prepare for potential risks, on the other, we should also strengthen follow-up analysis, make adjustment according to circumstances, and respond in a rapid, targeted and scientific manner. Additionally, we should unswervingly advance reform, so as to defuse risks and challenges. I would like to introduce the major reforms that the National Development and Reform Commission will advance this year in five aspects:

First, we will step up efforts to stimulate the vitality of various market entities. In term of the state-owned economy, the focus will be on optimizing its layout and making structural adjustment. The state-owned capital and enterprises will play more important roles in sectors concerning strategic security, industrial progress, the national economy and people's livelihood, as well as public services, so as to adjust and optimize the industrial structure. We will advance mixed-ownership reform scheme of the state-owned enterprises in a proactive and steady manner, especially in the four batches of over 200 state-owned enterprises pilots. We will foster a batch of new model enterprises and collect typical cases, and sum up practical experience as soon as possible so as to formulate measures for deepening structural reform in state-owned enterprises. In terms of the private economy, which many are also concerned about, our priority is to improve the environment for the development of the private economy, and step up efforts to eradicate barriers and obstacles which hinder the development of private enterprises. Moreover, we will strengthen monitoring the operation of the private economy, and establish some model cities to guide the development of the private economy nationwide.

Second, we will strive to establish a high-standard market system. The work can be summarized in following three aspects. We will implement the action plan to guide the building of a high-standard market system, so as to make it perform better. We will accelerate the development of a unified market. To promote efficient allocation of factors, we will continue to deepen reforms to encourage market-based allocation of land, the labor force, capital, technology and data. In order to improve market access, we will adopt a unified management model, and optimize dynamic adjustment mechanisms for the negative list. We will revise and roll out the market access negative list for 2021 in order to continue to remove various invisible market access barriers. We will also formulate and roll out special measures to ease market access in Hainan province and the city of Shenzhen.

Third, we will deepen reform in major sectors. For example, the power sector should strive to establish a unified electricity market system nationwide, and increase spot trading pilots for electricity. The oil and natural gas sectors shall deepen reform of the oil and gas pipeline operation mechanism, and ensure the implementation of reform measures in terms of equipment manufacturing, design and construction in power grid enterprises. The oil and natural gas industries should strive to reform the pipeline network operation mechanism, and accelerate the building of a unified network. Efforts will be made to ensure the equal access to the national pipeline network among market entities. We will also improve the government's storage system and mechanism for crude and refined oil. We will deepen market-oriented reform in the railway industry, and promote moderate competition among the railway transportation companies.

Fourth, we will ramp up efforts to drive green transformation. We will accelerate our steps to build up the nationwide markets for trading energy consumption rights and carbon emission rights, so as to peak carbon dioxide emissions and achieve carbon neutrality. We will improve the system for controlling the total amount and intensity of energy consumption, and optimize  systems and mechanisms for the coordination between the increase, consumption and storage of clean energy. We will establish and improve the mechanism to realize the value of ecological goods, and formulate ecological damage compensation regulations.

Fifth, we will enhance our capacity to safeguard the people's wellbeing. Mr. Hu has introduced some measures in this regard, and I'd like to add some more information. We will improve the policies and systems for distribution based on factors of production. We will improve the mechanism to ensure the returns for factors of production are determined by the market, and work to increase factor income of the low- and middle-income groups, so as to strive for common prosperity. Moreover, we will improve the price control mechanism of important livelihood commodities, and establish and improve a system of standards for basic public services. We will also boost the healthy development of elderly care and childcare services, and reform and improve the public service system of national fitness. Through these reforms, we aim to meet the people's increasing needs for a better life. Regarding the reforms, that's all I would like to introduce.

Hu Zucai:

I would like to answer the question about the gross domestic product (GDP) target set for the 14th Five-Year Plan period. GDP, as a comprehensive indicator, has always been a focus of attention. It has been contained as a major economic indicator in the draft outline of the 14th Five-Year Plan (2021-2025) for national economic and social development. The document sets the goal of keeping the average annual growth in an appropriate range, and stipulates that annual target [for economic growth] be set in light of actual conditions. This is the first time in our history of formulating five-year plans. Such a growth target is qualitative overall, with quantitative objectives being implied. It is a prudent adjustment made advisedly in light of the overarching target of promoting modernization. It is also a decision made after considering the development trend, domestic and external environment in the 14th Five-Year Plan period. I think we should understand this in a comprehensive and accurate manner.

First, GDP is a core indicator of a country's economic development. It also reflects the comprehensive economic strength and international competitiveness of a country. Therefore, GDP has been contained in the draft outline as one of the major indicators, but the target has been expressed in a different way.

Second, as China has entered a new stage of high-quality economic development, it is not reasonable to assess its development by simply looking at the GDP growth rate. We should not just pursue economic growth without considering the quality and effectiveness of development, as well as the ecological and environmental impact. On the other hand, economic growth does matter when it comes to the target of realizing modernization. China is still the world's largest developing country, and development remains the basis for and the key to tackling every problem we face. The draft outline has taken both above aspects into consideration. However, it does not mean that we will not need a GDP growth rate any longer. It was pointed out at the fifth plenary session of the 19th CPC Central Committee that China's per-capita GDP will reach the level of a moderately developed country by 2035, which means that its GDP growth rate in the coming 15 years has to be kept in an appropriate range. Moreover, the draft outline has set specific targets for other major indicators, including that of the unemployment rate, energy intensity and carbon intensity. All of them are interconnected with GDP, which means that we should strive to keep the economic growth in line with the potential growth rate. 

Third, we are confident that GDP growth rate will maintain at a certain level, which is proven by a comprehensive study and calculation with the participation of many think tanks. However, given the great uncertainties in the domestic and external environment in the next five years, the decision to not set a specific and quantitative growth target will make us more proactive, active and at ease in coping with all sorts of risks and challenges. It will help boost the flexibility of development and leave room for tackling uncertainties. It will also help us focus on improving the quality and effectiveness of development. Compared to five years, the annual situation is easier to study and judge, so in the annual work, the annual growth target can be determined in a targeted manner, depending on the situation, such as changes in the internal and external environment and the economic performance. Thank you.