China News Service:

The current complex and severe international environment and the spread of COVID-19 have had an impact on global production and trade activities. The restructuring of global industrial chains and supply chains is accelerating, and there is pressure facing the efficient operation of industrial chains and supply chains in some industries in China. What measures will be adopted next to maintain secure and stable industrial chains and supply chains in China?

Zhao Chenxin:

Thank you for your question. The question you raised is very important, and I will answer it. Facing a complicated and challenging domestic and international situation, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, all local governments and departments have been earnestly implementing the decisions and arrangements of the CPC Central Committee and the State Council, focusing on removing barriers and impediments, boosting the industrial economy and ensuring unimpeded flow in the national economy. These efforts have effectively ensured China's industrial and supply chains maintain safe and stable operations, especially that of certain major industrial and supply chains. To make our industrial and supply chains more resilient and secure, we are working on five priorities, which are as follows: 

First, we are working to enhance our strengths and strengthen weak links. On the one hand, based on our strengths in industrial scale and supporting facilities, and first-mover advantages in certain sectors, we are accelerating the implementation of the five-year action plan for raising the core competitiveness of the manufacturing industry. We are cultivating a host of competitive industries by upgrading and transforming traditional industries and fostering emerging industries, so as to build a competitive edge throughout the industrial chain in major sectors. On the other hand, we are focusing on key areas crucial to the economy, development, people's well-being and strategic security and concentrating on bottlenecks and weak links. In line with relevant incentive mechanisms, such as the open competition mechanism to select the best candidates to undertake key research projects and the "horse racing" mechanism, we are making integrated efforts to make breakthroughs in weak areas, upgrade applications and create a favorable environment, to win the critical battles over core technologies. Efforts have been made to implement projects for upgrading foundational industrial infrastructure and seek breakthroughs in weak links in key and fundamental areas.

Second, we are working to stabilize industrial production. We have strictly implemented the "Nine No" requirements in the COVID-19 response and eliminated actions of arbitrarily shutting down enterprises vital to the industrial chain and people's basic needs. We have taken firm actions to avoid taking an oversimplified or one-size-fits-all approach to the COVID-19 response. We have prevented excessive restrictions to ensure the orderly operation of industrial parks and the normal and stable production and operation of enterprises. Continuous efforts have been made to keep logistics stable and smooth and to ensure a sound supply of energy and raw materials, thus ensuring the smooth operation of key industrial and supply chains.

Third, we are working to improve the layout of industries. We have remained committed to taking a coordinated approach across the country to adjust and improve the layout of industrial and supply chains and make the whole industrial chain more efficient. We have strengthened our abilities to coordinate works concerning major productivities, stepped up planning and policy guiding, and avoided blind investment and redundant construction. We have thoroughly implemented national projects for developing clusters of strategic emerging industries, built a tiered system for developing industrial clusters, and fostered a series of growth engines for strategic emerging industries with unique features, complementarity and reasonable structures.

Fourth, we are deepening opening up and cooperation. We are working to promote the smooth operation of industrial and supply chains for foreign trade and support the development of cross-border e-commerce and overseas warehouses. We are working to ensure the effective utilization of foreign investment, encourage more foreign investment in sectors such as high-end manufacturing and high technologies, and support the innovative development of foreign-funded R&D centers. We are working to advance practical international cooperation, high-quality Belt and Road cooperation and the high-quality implementation of RCEP. By using various multilateral mechanisms, we are working to build a system for mutually-beneficial international cooperation in industrial and supply chains. Efforts have been made to foster a market- and law-based and internationalized business environment, to boost market dynamism and social creativity. 

Fifth, we are working to strengthen risk prevention. We are working for policies for stabilizing growth to deliver results, especially to step up efforts to ease difficulties for micro-, small- and medium-sized enterprises and to ensure our policies bear more fruits. We are working to strengthen the building of systems for production, supply, storage, manufacturing and marketing, and to enhance market oversight and ensure the stable supply and prices of commodities and raw materials. Efforts have been made to improve the risk monitoring system for industrial and supply chains and enhance the ability to ensure early detection and targeted and effective treatment of risks. We are working to see all the stakeholders fulfill their responsibilities, ensure the early detection, reporting, assessment and handling of risks, and earnestly maintain the safe and stable operation of major industrial and supply chains. Thank you.