Bloomberg: 

In the data yesterday, we saw that the utilization rate of industrial capacity fell to 73.6% in the first quarter; that was the lowest since the first quarter of 2020, and down from the last three months of last year. This pullback comes as the U.S. and Europe scold Beijing for building up what they see as excess capacity. Would the NDRC like to respond to that? And also, just separately, will the messages that have been delivered by Yellen and Scholz in their visits this month about China's industrial policy in any way shape or influence Beijing's plans? Thank you.

Jin Xiandong: 

Thank you for your questions. The utilization rate of industrial capacity is an indicator reflecting the short-term relationship between production and demand, affected by factors such as demands and profits. Looking at data from recent years, the quarterly fluctuations in capacity utilization rate are relatively large, with the first quarter showing relatively lower rates and the fourth quarter relatively higher, which is related to factors such as the Spring Festival holiday. Our preliminary analysis suggests that the capacity utilization rate is expected to gradually rebound in the coming quarters.

Regarding capacity issues, we need to start from economic laws and view them objectively and dialectically. In a market economy, the supply-demand balance is relative, and imbalance is common. Moderate oversupply is conducive to market competition and survival of the fittest, which is a widespread phenomenon. Some link capacity issues to international trade, believing that exporting more goods indicates overcapacity, which is groundless. China imports a large amount of chips, aircraft, soybeans, crude oil and other goods every year. Does this mean that the exporting countries of these goods all have overcapacity?

In the context of economic globalization, both supply and demand have global characteristics. Each country possesses greater capacities in their respective advantageous industries and lesser capacities in others, which is determined by their comparative advantages. Only by strengthening cooperation can we achieve common development. According to estimates by the International Energy Agency, global demand for new energy vehicles in 2030 will be more than three times that of global sales in 2023. In the process of promoting green and low-carbon transformation and development, there is huge market demand in new energy fields such as electric vehicles, which creates a shared opportunity for the development of all countries. The continuous development of China's new energy industry and the provision of high-quality capacity not only meet its own needs for high-quality development but also make important contributions to global response to climate change and green and low-carbon transformation. Thank you.