Yicai:

Industry is the ballast of the national economy. This year, China’s industrial production has maintained a rapid growth rate. However, there was a decline in May. How do you view the current performance of the industrial sector? What measures will be taken to stabilize industrial growth going forward? Thank you.

Jin Zhuanglong:

Thank you for your question. The development of the industrial sector is receiving wide attention. As I mentioned earlier, last year, China's total value added of industry accounted for 31.7% of GDP, serving as a "ballast" in maintaining stable macroeconomic performance. This year, China's industrial sector got off to a good start, sustaining momentum of rebound and improvement. Notably, from January to May this year, the value added of industrial enterprises above the designated size increased by 6.2% year on year, 1.6 percentage points higher than in 2023. In May, the value added of equipment manufacturing enterprises above the designated size and high-tech manufacturing enterprises above the designated size grew by 7.5% and 10% year on year, respectively.

However, we must recognize that China's industrial sector still faces difficulties and challenges in sustaining its recovery momentum. This is due to the current complex and severe external environment, as well as insufficient effective domestic demand. Moving forward, we will focus on integrating the requirements of high-quality development into the entire process of new industrialization. We will take solid steps to further stabilize growth, ensure security, and facilitate upgrading to consolidate and enhance the recovery momentum of the industrial sector. Our efforts will be concentrated in the following key areas:

First, we will continue to focus on the development of the 10 key industries: steel, non-ferrous metals, petrochemicals, chemicals, building materials, machinery, automobiles, power equipment, light industry, and electronics. These sectors are large in scale, possess strong driving forces, and are highly interconnected, collectively accounting for about 70% of the value added of industrial enterprises above the designated size. Last year, we formulated work plans to stabilize growth in these 10 industries. This year, we will continue implementing these plans and fostering new growth drivers.

Second, we will encourage prominent industrial provinces to take the lead and support them in this endeavor. The combined industrial value added of the 10 major industrial provinces, including Jiangsu and Guangdong, accounts for over 60% of the national total, making them crucial for stabilizing the industrial sector. In the first five months of this year, the growth rates of these 10 provinces all exceeded the national average. Additionally, we are paying particular attention to the 50 prominent industrial cities, more than 10 of which have achieved hard-earned double-digit growth. We will continue to support prominent industrial provinces and cities in consolidating their strengths and taking the lead. We will also support the development and expansion of distinctive and competitive industries in various regions. Beyond major industrial hubs, each province and city boasts its own unique and competitive industrial strengths, and we will provide tailored support to these locales. At the same time, we are mainly focused on nurturing a number of key industrial counties. We will continue supporting the northeastern, central, and western provinces in facilitating industrial relocation and development, enhancing their capacity to absorb relocated industries, and securing a number of major projects.

Third, we will further expand effective investment in manufacturing. We will earnestly implement the measures for industrial equipment upgrades, facilitating advanced equipment renewal, digital transformation, green equipment promotion, and intrinsic safety enhancement. We are also carrying out actions to promote the high-quality development of key manufacturing industrial chains and accelerate the advancement of major national science and technology programs and key national R&D programs. We aim to achieve more substantive and signature outcomes. We will continue to leverage the roles of the national manufacturing industry transformation and upgrading fund, the national integrated circuit industry investment fund, and the national SME development fund. Through these efforts, we aim to guide and attract private capital to key areas and address weak links in developing a modernized industrial system. This approach will help us stay ahead of the curve in future sci-tech and industrial development.

We will also put greater effort into refining the development environment for manufacturing enterprises. To boost the vitality of business entities, we will implement multiple cost-reduction measures for enterprises. Additionally, we'll launch special, effective initiatives to resolve the issue of overdue payments owed to companies. To unlock personal consumption potential, we will launch a nationwide campaign to increase product variety, raise quality, and build product brands. Additionally, we will stimulate spending on high-quality products such as new energy vehicles, green building materials, and smart home appliances in rural areas. To drive industrial upgrading, we will adopt a multi-faceted approach: upgrading traditional industries while consolidating and enhancing competitive industries, nurturing and expanding emerging industries, and planning for future industries with a forward-looking vision.

That's all for my answer. Thank you.