Xinhua News Agency:

As China's economic development entered a new normal and risks and challenges mounted in recent years, how did we achieve steady and rapid growth of the industrial economy? And what's your view on its prospects? Thank you.

Xin Guobin:

Thank you for your question. The industrial economy is the mainstay and core growth engine for the national economy. Since the 18th National Congress of the CPC, with a commitment to the general principle of pursuing progress while ensuring stability we have implemented the strategies of building China into a leader in manufacturing and cyberspace, thus promoting the industrial economy to achieve steady improvement in quality and an appropriate increase in size.

China's value-added industrial output expanded from 20.9 trillion yuan in 2012 to 37.3 trillion yuan last year. The average annual growth rate stood at 6.3 percent in real terms, much higher than the global rate of around 2 percent. Despite the impacts of the pandemic, the average growth rate for 2020 and 2021 reached 6.1 percent, giving a strong boost to the steady and sustained development of the Chinese economy and playing an important role in stabilizing the global industrial and supply chains and promoting the recovery of the world economy.

Over the past 10 years, we have taken the following measures to develop our industrial economy. First, we highly valued planning. Aiming for the goals set in both the medium-long term plans and five-year plans, we formulated annual targets and arrangements in time, thus forming a mixed, scrollable goal system for the development of the industrial economy. 

Second, we highly valued policy support. Over the years, thanks to the joint response of the central authorities and local governments and coordination between relevant departments, a series of policies have been adopted to expand investment, promote consumption, ensure unimpeded channels, and upgrade the working environment, providing strong support for the steady growth of the industrial economy.

Third, we highly valued the transformation of growth drivers. We sped up upgrading technology and equipment, prompted enterprises to be smart, green, and high-end, and accelerated modernization of the industrial system, all in a drive for high-quality development. 

Fourth, we highly valued the vitality of market entities. We fully implemented reforms in key sectors and took solid steps to streamline administration and delegate power, improve regulation, and upgrade services. We continued supporting micro, small, and medium-sized enterprises (MSMEs), fostered competitive enterprises in a gradient manner, endeavored to ease enterprises' burdens, and made every effort to sustain enterprises – the foundation of the industrial economy.

Fifth, we highly valued international cooperation. We coordinated global and domestic industrial circulation and expanded opening up at a higher level. We attracted global high-end factors and advanced manufacturing to the domestic market while encouraging homegrown enterprises to explore the international market so as to foster a new development paradigm. 

Sixth, we highly valued the prevention and defusing of risks and challenges. We worked hard to make breakthroughs in core technologies in key fields, kept the industrial and supply chains safe and stable, and effectively prevented and defused risks and challenges. 

Impacted by geopolitical conflicts and new waves of COVID-19 infections, our development climate is becoming increasingly complex, severe, and uncertain, and the downward pressure on the industrial economy is mounting. Even so, we consider these shocks and impacts temporary, as our manufacturing system is complete, of strong resilience, and has great potential. Its fundamentals sustaining long-term growth remain unchanged. The central government recently issued a package of supporting policies to stabilize the economy, which is very much needed and reassuring. Enterprises are resuming work and production in an orderly manner and gearing up for design capacity. Continuously boosted by various policies, the industrial economy is expected to return to normalcy in the near future. 

Following the general principle of controlling the COVID-19 pandemic while stabilizing the economy and pursuing a sound and safe growth, we will take well-coordinated measures to contain the pandemic, facilitate smooth flows, protect market entities, expand demands, and stabilize expectations. We will spare no effort to keep the performance of the industrial economy within an appropriate range and embrace the convention of the 20th National Congress of the CPC with concrete measures.

Thank you.

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