CNBC:

How does China plan to balance the slowdown in the real estate sector with supporting new economic growth drivers in the face of rising trade tensions with major trading partners? Thank you.

Mo Gaoyi:

This question goes to Mr. Han.

Han Wenxiu:

China's real estate market is large and interconnected with numerous sectors, exerting a systemic impact on the functioning of the macro economy. Currently, the market is undergoing significant changes in supply and demand dynamics and is in an adjustment phase. We must uphold the principles of seeking progress while maintaining stability, establishing the new before abolishing the old, resolving development-related problems through reform, and accelerating the replacement of old growth drivers with new ones. By doing so, we can provide diverse and strong support for high-quality development. We need to focus our efforts on three key areas:

First, we need to promote the stable and healthy development of the real estate market. Recently, we've observed some positive changes. Looking ahead, we need to make progress in both absorbing existing stock and optimizing new supply. We must further implement and improve new policies for real estate development, ensure the delivery of housing projects, and revitalize existing commercial housing stock and land resources. Going forward, we need to implement the guiding principles of the third plenary session of the 20th CPC Central Committee. This includes speeding up the development of new models for real estate development and eliminating the drawbacks of past models characterized by high debt, high turnover, and high leverage. Efforts will be made to build better housing that meets people's new expectations and better satisfies both essential housing needs and demands for improved living conditions. We also need to establish corresponding foundational systems in financing, fiscal, taxation, land, sales and other sectors to cope with these demands. It's important to note that as China's new urbanization continues to advance, there is still considerable room for high-quality development in the real estate sector.

Second, we need to accelerate the development of emerging and future industries to cultivate new engines for economic growth. In recent years, China has developed several competitive industries, such as high-end equipment, new energy vehicles and photovoltaics. Emerging industries like new-generation information technology, new materials, the low-altitude economy, and new types of energy storage are also thriving. We have nurtured over 140,000 specialized and sophisticated small- and medium-sized enterprises that produce novel and unique products. In accordance with the deployments made at the third plenary session, we should develop new quality productive forces in light of local conditions. This involves cultivating and strengthening emerging industries, making sound plans for future industries, upgrading traditional sectors, and promoting high-end, intelligent and green development in manufacturing. These efforts will help us form a group of emerging pillar industries and steadily foster new growth drivers and new strengths.

Third, we need to expand domestic demand, especially consumer demand, to enhance the internal momentum and reliability of domestic economic flows. Facing the new international environment, we must ensure the stable performance of foreign trade and investment while continuously expanding the room for China's development. At the same time, we should fully tap into the potential of domestic demand, making the best use of China's super-large market. We must fully leverage the foundational role of consumption and the critical role of investment. This approach will help us effectively pursue high-quality economic growth and properly increase China's economic output. China's economy is large, with strong domestic demand and sound internal circulation. As long as we manage our own affairs well, we will ensure the smooth and stable operation of the national economy. Thank you!