CCTV:

We have noticed that in the first quarter of this year, the central government introduced some policies supporting new drivers of economic growth. Could you please elaborate on the relevant situation and what policy considerations will be taken in the next step? Thank you.

Wang Dongwei:

Thank you for your question. I will answer it. The central government attaches great importance to cultivating new drivers of economic growth and vigorously supports them. I will respond in the following way:

First, we focus on supporting the high-quality development of the manufacturing industry. Centering on vigorously promoting the building of a modernized industrial system and accelerating the development of new quality productive forces, the central government has allocated special funds in the manufacturing sector to make up for weaknesses and strengthen advantages in key technologies and industries and to promote leapfrog development in industries such as new-generation information technology, high-end equipment and new materials. Soon, we will collaborate with departments such as the Ministry of Industry and Information Technology to implement a new round of fiscal support policies for small and medium-sized enterprises with specialized and sophisticated technologies to produce novel and unique products , cultivating more corresponding experts in vital links within the industrial chain. We will pilot new technological transformation in some cities in the manufacturing sector and allocate 3 billion yuan in 2024 to support the "intelligent transformation, digital transformation and networking " of the first batch of around 20 pilot cities, so as to enhance the high-end, intelligent and green standards of the manufacturing industry.

Second, we will focus on promoting the growth of the digital economy. The central government's fiscal support will spotlight key areas of the digital economy, including supporting the construction of digital infrastructure, cultivating industrial internet platforms and promoting the digital transformation of small and medium-sized enterprises, in order to promote the deep integration of the digital economy and the real economy. In the first quarter, the growth rate of the value added of information transmission, software and information technology services reached 13.7%. In 2023, we allocated 3 billion yuan to support 30 pilot cities in carrying out pilot projects for the digital transformation of small and medium-sized enterprises and address the prominent issue of "not daring to transform, unwilling to transform and not knowing how to transform" faced by those enterprises. This year, another 3 billion yuan will be allocated to expand the scope of the pilot. In the next step, we will work with relevant departments to launch the digital transformation and upgrading of transportation infrastructure, supporting the digital transformation of a number of busy national highways, ordinary national roads and high-grade waterways, aiming to promote intelligent expansion, safety efficiency improvements and industrial integration of transportation facilities.

Third, we will focus on expanding and promoting domestic demand. We will make good use of fiscal and tax policies to support the implementation of large-scale equipment renewal and trade-ins of old consumer goods. Centering on the trend of upgrading residents' consumption, we will integrate existing policies with new ones, adhere to the linkage between the central government and local governments, actively promote the trade-in of old durable consumer goods, such as automobiles and household appliances, and cultivate new growth points for consumption. We will support the implementation of county-level actions for commercial construction and the construction of modern commercial and trade logistics systems to improve the level of guarantee for consumption service . Soon, we will work with relevant departments to launch county-level charging and battery swapping facilities to make up for weaknesses and, this year, we will support about 70 pilot counties in 24 provinces to tap the potential of new energy vehicle consumption within rural areas.

Fourth, we will focus on improving the quality and efficiency of infrastructure. We will comprehensively use policy such as additional issuance of treasury bonds, special local government bonds, the central government budget for investment and vehicle purchase tax funds to promote the construction of key fields and major projects. For example, since 2022, a total of 13.7 billion yuan has been allocated to support the implementation of national comprehensive freight hub reinforcement work in two batches of 25 cities, aiming to promote the reduction of comprehensive logistics costs.

Next, we will work with relevant departments to support some large and medium-sized cities in implementing urban renewal actions, including updating and renovating underground pipe networks. At the same time, we will support a new batch of cites to reinforce their functions as national comprehensive freight hubs. These efforts will further improve the shortcomings of infrastructure and better leverage the stimulus effect of government investment.

That's all I have to say. Thank you.