CCTV:

As an examination of the national economy in the new era, what important changes in China's economy over the five-year period were reflected in the fifth national economic census? Are there any particular features worth noting? Thank you.

Kang Yi:

Thank you for your questions. We paid close attention to this issue during the census. The census results show that over the five-year period, China's economy withstood multiple domestic and international risks, maintaining a trend of steady progress. Compared to the results of the fourth national economic census, China's economic development showed many positive changes in terms of the GDP, optimized structure, innovation-driven development, security and green transformation, boasting a solid foundation, strong resilience and huge potential. These changes can be summarized as follows:

First, the foundation for development was strengthened. Over the five-year period, facing the profound and complex changes in the external environment and the tremendous shock of COVID-19, our country adopted a general working principle of pursuing progress while maintaining stability, enforced sound and effective macro regulation, overcame unprecedented challenges, and significantly improved comprehensive national strength. China's GDP reached almost 130 trillion yuan in 2023, ranking second worldwide. Over the five-year period, China's contribution to global economic growth averaged around 30%, serving as the largest source of global economic growth. The foundation for industrial development was further solidified. The census results show that at the end of 2023, the secondary and tertiary industries saw increases in legal entities, up 52.7% from the end of 2018, with total assets of the legal entities rising 57.4%. Both industries can be said to have realized remarkable growth.

Second, the development structure was further optimized. Over the five-year period, China continued with industrial upgrading and further improved coordinated development between regions. The service sector saw a large increase in the number of business entities, becoming an important force for boosting economic growth and high-quality employment. In 2023, the value added of the tertiary industry accounted for 56.3% of GDP, up more than 2 percentage points from 2018. We deepened the strategy to strengthen manufacturing and maintained rapid development in the sector. At the end of 2023, the number of legal entities in manufacturing reached 4.048 million, up 23.8% from the end of 2018; and the total assets of legal entities in manufacturing reached 151 trillion yuan, up 41.7%. The share of central and western regions in the economy rose, and we realized more coordinated development between regions. At the end of 2023, the proportion of legal entities in secondary and tertiary industries in the central and western regions in the national total increased by 1.4 percentage points and 0.6 percentage point, respectively, from the end of 2018. We also deepened major regional development strategies, showing agglomeration effects. In 2023, the number of legal entities in secondary and tertiary industries grew rapidly in the Beijing-Tianjin-Hebei region, Yangtze River Economic Belt, Yangtze River Delta, and the nine provincial regions along the Yellow River.

Third, the development momentum was stronger. Over the five years, China placed innovation at the central position in its modernization drive, and deeply implemented the strategy of innovation-driven development, steadily fostering new quality productive forces. Businesses had seen stronger momentum in innovation and R&D, and numerous innovative achievements had emerged. In 2023, industrial enterprises above designated size filed 65.1% more invention patents than in 2018. Technological innovation had been empowering industrial transformation and upgrading, and the conversion of scientific and technological achievements into real productive forces was accelerating. High-end industrial development was also speeding up. At the end of 2023, the proportion of corporate enterprises in the high-tech manufacturing industry to all manufacturing enterprises above designated size increased by 2 percentage points compared to the end of 2018; and the proportion of corporate enterprises in the high-tech service industry to all service businesses above designated size exceeded one-quarter. New technologies and new processes were also being widely applied to accelerate the development of many new industries and new business models. At the end of 2023, the number of enterprises above designated size engaged in strategic emerging industries nationwide reached 158,000, accounting for over one-fifth of all industrial and service enterprises above designated size. The new retail format, represented by businesses without brick-and-mortar stores, was developing rapidly, with operating income increasing by 137% compared to 2018, becoming the fastest-growing sector in the retail industry. The scale of the online retail market continued to expand, and the online retail industry had performed well, with operating income growing by 186%.

Fourth, development security had been better ensured. Over the five years, China had pursued a holistic approach to national security, kept in mind both domestic and international situations, ensured both development and security, steadily improved the self-supporting and risk-controllable industrial and supply chains, and strengthened the ability to ensure energy supply and food security. China made further breakthroughs in core technologies in key fields, and improved the secure and reliable domestic production and supply system. In 2023, China's manufacturing added value ranked first in the world for the 14th consecutive year, with rapid growth in the production of integrated circuits and industrial machine tools. China had ensured sufficient energy supply. By 2023, the production of raw coal reached 4.72 billion metric tons, the production of crude oil reached 210 million metric tons, and power generation reached 9.5 trillion kilowatt-hours. Food security had also been effectively guaranteed, ensuring that China's food supply remained firmly in our own hands.

Fifth, we had seen more sustained development. In the five years, China made significant progress in promoting ecological civilization. Effective progress had been made in the transformation of the economy and society toward green and low-carbon development. The new energy industry had flourished, gradually becoming a competitive industry for China. After unremitting efforts, China's new energy vehicle (NEV) industry had taken the lead globally. In 2023, the production of NEVs reached 9.458 million units, an increase of 7.9 times compared to 2018. Production had been the highest in the world for nine consecutive years, accounting for over 60% of the global total. China had broadly established eco-friendly methods of work and life. In 2023, solar cells (photovoltaic cells) and wind turbines generated 650 million kilowatts and 140 million kilowatts, respectively, increases of 5.9 times and 8.4 times compared to 2018. The proportion of clean energy consumption such as natural gas, hydropower, nuclear power, wind power and solar power continuously increased, providing new support for sustainable economic development. Thank you.