Lianhe Zaobao:

This year's government work report emphasizes boosting consumption. What are the main challenges in this area? What new policies and measures will be implemented to vigorously boost consumption? Thank you.

Shen Danyang:

I'll answer these questions. Both consumption and investment are key components of domestic demand. Given the problems you mentioned, you might have observed that the government work report identifies "stimulating domestic demand across the board" as the first of the 10 key tasks for 2025. In light of the fact that insufficient demand is a major issue facing the Chinese economy, and given that changes in the international environment may exert new impacts on external demand, we need to place a greater focus on domestic demand in order to drive economic development. Therefore, the report emphasizes the need to stimulate domestic demand across the board, which requires comprehensive measures to tap the potential of domestic demand across all sectors, making it the main engine and anchor for economic growth.

To expand domestic demand, the report assigns a more prominent role to boosting consumption. Greater efforts are needed to address the following key issues: First, the lack of purchasing power; second, the shortage of quality products and services; and third, the need for further improvement in the consumption environment. Therefore, this year, on the basis of increasing the intensity and expanding the scope of support for the consumer goods trade-in program, we will also emphasize the "three priorities" and implement "one action." The "three priorities" include increasing people's incomes and reducing their burdens to enhance spending power, enhancing the supply of quality products and services to drive effective demand, and improving the consumption environment to promote consumer spending. We will also implement "one special action," which involves launching special initiatives to boost consumption. Relevant departments are currently developing an action plan and supporting policies for this purpose, which will be introduced and implemented as soon as possible.

While boosting consumption, the report also outlines targeted measures to strengthen investment. Addressing persistent challenges in the investment sector, it emphasizes the need to expand effective investment and boost investment returns. In terms of funding, we will simultaneously expand funding channels and increase the scale of funding through substantially enlarged government investments. These investments include ultra-long special treasury bonds, central government budgeted investments and local government special-purpose bonds. In terms of management, we'll streamline processes for local government special-purpose bonds, implement a negative list for investment areas, delegate authority for project review and approval, and increase ultra-long-term loans along with other forms of financing support. For investment direction, we'll encourage more investment in the service sector, use government investment to stimulate private investment, implement policies designed to spur the growth of the private sector, and support and encourage the development of private investment. Thanks for your questions.