Shou Xiaoli:

There is great interest in development and reform work, and several reporters still have their hands raised. Due to time constraints, we'll take one last question.

ThePaper.cn:

How do you view the role of fixed asset investment in promoting high-quality development in recent years? What has the investment situation been like this year? What measures will be taken next to further expand effective investment? Thank you.

Zhao Chenxin:

Thank you for your questions; let me address them. I understand that your questions concern investment efforts, the investment situation and the role of government investment. We have always said that investment is the demand of the present and the supply of the future. In recent years, investment has played a very crucial role in stabilizing growth, adjusting structures, fostering new dynamics and preventing risks. Over the past decade, the total capital formation within China has contributed, on average, more than 40% to economic growth. Under considerable pressure of an economic downturn, it is even more important to leverage the key role of investment.

I will take this opportunity to also introduce the situation of government investment. Government investment plays a very important role in driving and amplifying effective investment, and it is also an important approach for us to address deficiencies, strengthen weak areas, solve difficult problems and handle practical issues. Let me lay out the specifics for you.

First, we have promoted projects that can help achieve strategic goals. The CPC Central Committee and the State Council have arranged a series of strategic tasks for high-quality development, involving some projects that are difficult to implement with social investment alone. For example, major projects such as power grids, high-speed railways, expressways and water conservancy projects span regions, river basins and fields. They require substantial funding, with coordination being very challenging. Their implementation can only be achieved through the driving and amplifying effects of government investment. Furthermore, although projects like national parks and those for green, low-carbon development have good social and ecological benefits, their direct economic benefits are not obvious, thus requiring government investment to guide and drive their implementation.

Second, we have promoted projects that improve people's welfare. From practice, it is evident that government investment plays a significant role in creating jobs, providing wage income and thereby driving consumption. For example, some journalists here have reported on the "work-for-relief" projects, where labor remuneration now accounts for more than 30% of funds earmarked for such investment projects in the central government budget; in 2023, the "work-for-relief" initiatives helped 2.53 million people gain employment, with an average income increase of over 14,000 yuan per person. Additionally, government investment has significantly supported a large number of projects in urban renewal, pollution prevention and control, elderly care, childcare, medical and health care as well as other areas related to people's livelihoods.

Third, we have promoted projects that solidify the foundation of security. The CPC Central Committee and the State Council have made significant arrangements concerning food security, energy security, and the security and stability of industrial and supply chains. Major projects such as high-standard cropland development and energy resource reserves require continuous, stable and large-scale financial investment. Government investment is indispensable in these areas. Government investment has played a very important role in expanding effective investment and has promoted high-quality development through the implementation of these projects.

Regarding the current investment situation that you are concerned about, investment has achieved stable growth, structural optimization and improved quality and efficiency this year. In the first half of the year, fixed asset investment increased by 3.9% year on year, with manufacturing investment growing by 9.5% and private investment rebounding to account for 51.9% of total investments. Moving forward, the NDRC will work with relevant parties to continuously enhance investment vitality through reform and innovation.

On one hand, we will fully leverage the driving and amplifying effects of government investment. We will establish a long-term mechanism for government investment to support the development of major projects that are of fundamental and far-reaching importance and serve the public interest, to coordinate the use of various types of government investment and to focus on guiding all parties to accelerate the cultivation of new development drivers. Specifically, we will make good use of ultra-long-term special government bonds and ensure the high-quality development of initiatives for implementing major national strategies and building up security capacity in key areas. We will effectively utilize the guiding and driving role of investments from the central government budget, accelerate the development of local government special bond projects, ensure the successful implementation of projects supported by funds raised from additional government bonds in 2023, promote the implementation of the 102 major projects under the 14th Five-Year Plan, and move faster to see more projects launched.

On the other hand, we will effectively mobilize the enthusiasm of private investment. We will improve mechanisms to stimulate and facilitate social capital investment, thereby driving the formation of a market-led mechanism for ensuring self-sustaining growth of effective investment. Specifically, we will make good use of the interdepartmental joint meeting mechanism to promote the development and expansion of the private economy, to implement a series of measures to encourage private investment, and to better implement the new mechanisms for government and social capital cooperation, continuously optimizing the investment environment and ensuring that private capital is confident, willing and able to invest. We will continue to recommend and introduce high-quality projects to private capital, a task that has been ongoing for some time, and will further promote the fair opening of competitive areas in infrastructure to business entities as well as support social capital in increasing investments in areas such as equipment upgrades, thus continuously expanding the investment space and allowing private investment to have choices as well as be able to invest effectively.

In short, we will maintain the current positive trends with stable investment growth, structural optimization, and quality and efficiency improvements, continuously leveraging the key role of effective investment and promoting high-quality development.

That's all for my answer, thank you.

Shou Xiaoli:

Thank you, Mr. Zhao, thank you to all the speakers, and thank you to all the journalists. That concludes today's press conference.

Translated and edited by Wang Yiming, Wang Qian, Liu Jianing, Ma Yujia, Mi Xingang, Wang Yanfang, Gong Yingchun, Huang Shan, Zhu Bochen, Zhou Jing, Wang Wei, Liao Jiaxin, Yan Bin, Li Huiru, Zhang Rui, Zhang Junmian, David Ball, Jay Birbeck, and Rochelle Beiersdorfer. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.