Reuters:

We have noticed that the recent meeting of the Political Bureau of the CPC Central Committee emphasized expanding domestic demand with a focus on boosting consumption. It suggested that policy efforts should shift toward improving people's livelihoods, promoting consumption, and increasing people's income. Additionally, the government has recently earmarked a portion of treasure bonds to fund consumer goods trade-in initiatives. We would like to ask if this indicates a policy adjustment, as previously, our policy focus was mainly on investment and supply-side measures. Moreover, could you predict whether the policies to promote consumption will take effect soon and whether they will help achieve this year's goals? Thank you.

Zhao Chenxin:

Let's invite Mr. Yuan to answer the question. 

Yuan Da:

Thank you for your questions. According to the arrangements of the CPC Central Committee and the State Council, the NDRC, in collaboration with relevant departments, has recently allocated approximately 300 billion yuan in ultra-long special treasury bonds to facilitate large-scale equipment renewal and encourage consumer goods trade-ins. This includes directly allocating around 150 billion yuan to local governments to support consumer goods trade-ins, allowing the "real benefits" of the policy to reach consumers more quickly and conveniently, thereby better meeting residents' needs for consumption upgrades. We believe the policy effects will gradually become apparent.

The Political Bureau of the CPC Central Committee recently held a meeting to make comprehensive arrangements for economic work in the second half of this year. Moving forward, the NDRC will work with relevant departments to fully implement all assigned tasks, including facilitating large-scale equipment renewal and encouraging consumer goods trade-ins. We will further deepen reform comprehensively with a view to advancing Chinese modernization, strengthen macro regulation, deepen innovation-driven development, tap into the potential of domestic demand, and reinforce the momentum for economic recovery and growth. We must remain firmly committed to accomplishing the goals for this year's economic and social development, and will focus on the following six areas:

First, we will speed up the implementation of landmark reform measures. We will take the economic structural reform as an engine of progress and promptly introduce a batch of mature and tangible reform measures. This includes launching guidelines for the development of a unified national market, releasing a new version of the negative list for market access, and creating a fairer and more dynamic market environment. We will actively cultivate new growth drivers for foreign trade, expand trade in intermediate goods and green trade, and make greater efforts to attract and utilize foreign investment.

Second, we will enhance the intensity and effectiveness of macro policies. Macro policies will continue to be forceful and more effective, with additional policies introduced as the situation changes, thereby continuously improving the capacity for policy implementation. We will coordinate efforts in "hard investments" and "soft construction," combining project construction with policy, planning, and mechanism development to accelerate the construction of projects that implement major national strategies and build up security capacity in key areas. The policies and measures to intensify support for initiatives facilitating large-scale equipment renewal and encouraging consumer goods trade-ins will be implemented and are expected to deliver substantial results as soon as possible.

Third, we will actively expand domestic demand. We will place greater emphasis on promoting consumption, encouraging the purchase of commodities such as automobiles and home appliances, and improving and expanding service consumption in education, elderly care, child care and domestic services. We will also support the high-quality development of cultural, sports, and tourism sectors, continuously optimize measures to facilitate two-way travel, and make it more convenient for foreigners to travel in China. Additionally, we will promote effective investment by advancing the construction of 102 key projects listed in the 14th Five-Year Plan, accelerating the issuance and use of special-purpose bonds for local governments, putting in place a new mechanism for cooperation between government and private capital, and further stimulating private investment. We will also coordinate efforts in new urbanization and all-around rural revitalization and promote the implementation of major regional strategies.

Fourth, we will accelerate the development of a modernized industrial system. We will foster new quality productive forces tailored to local conditions, step up efforts to secure breakthroughs in core technologies in key fields, make a big push to foster emerging industries and industries of the future, and promote the transformation and upgrading of key industries. We will accelerate the clean-up in outdated and inefficient production capacity, promote the full integration of the real economy and the digital economy, and effectively reduce logistics costs across society.

Fifth, we will defuse risks in key areas in a steady and orderly manner. We will ensure the implementation of the new policies aimed at promoting the stable and healthy development of the real estate market, intensify our efforts to ensure the handover of buildings, and speed up building the new development model of the property industry. We will implement a package of debt relief plans, and continue refining the specific measures in a targeted manner. We will also deal prudently with financial risks, so as to strengthen the systems that safeguard financial stability and effectively prevent and mitigate systemic financial risks.

Sixth, we will work harder to ensure and improve people's livelihoods. We will ensure employment for key groups such as college graduates, boost people's incomes through multiple channels, and deepen the reform of public services like elderly and child care. We will make efforts to implement the action plan for energy conservation and carbon reduction for 2024-2025. Moreover, we will ramp up efforts in preventing and responding to extreme weather events and natural disasters, and ensure power supply during peak periods in summer. Thank you.