CCTV:

How would you evaluate the performance of China's economy in the first two months, and what are the overall highlights and positive changes? Thank you.

Fu Linghui:

Thank you for your questions. Since the beginning of this year, with the gradual implementation of more proactive fiscal policies and moderately accommodative monetary policies, the synergistic effects of existing and incremental policies have been continuously enhanced. In the first two months, production and supply grew steadily, demand expanded gradually, the employment situation remained generally stable, and new drivers of development strengthened progressively. The overall economic operation has been stable and has shown progress, continuing the improving trend. The characteristics of economic performance in the first two months can be summarized in two points: first, the economy got off to a stable start; second, the development trend is shifting toward new and positive improvements.

The stable start to economic performance primarily refers to the economy continuing the recovery trend that began in the fourth quarter of last year. It maintained overall stability in the face of growing external pressures. This is primarily reflected in stable production growth, gradual expansion of demand and an overall stable employment situation. From the perspective of production, new-type industrialization has steadily advanced. The combined effects of macro policies are increasingly evident in driving industrial growth, resulting in relatively rapid industrial production. In the first two months, the value-added of industrial enterprises above designated size rose 5.9% year on year, accelerating 0.1 percentage point compared with last year. Among them, the value-added of the equipment manufacturing sector increased 10.6% year on year, significantly supporting overall industrial growth. With the continued deepening of digital transformation and the active holiday economy during the Spring Festival, growth was driven in information technology, tourism and transportation-related industries, while the service sector showed strong growth momentum. In the first two months, the production index of the service industry rose 5.6% year on year, accelerating by 0.4 percentage points compared with the previous year. Within this group, the production indices of the information transmission, software and IT services industry, as well as the leasing and business services industry, rose 9.3% and 8.8% year on year, respectively. From a demand perspective, consumer goods trade-in policies were intensified and expanded. During the Spring Festival, the markets for tourism, culture and sports were booming, driving a rebound in market sales and an expansion in service consumption. The total retail sales of consumer goods in January and February rose 4% year on year, accelerating 0.5 percentage points from the previous year. During the Spring Festival, domestic tourist trips rose 5.9% year on year. In January and February, the transaction volume of tourism services on digital platforms increased by more than 20%. The 2024-2025 snow season saw national ski resorts receiving a cumulative 22.8% increase in visitors year on year. Meanwhile, domestic animated film "Ne Zha 2" broke multiple box office records. With the enhancement of policies for basic livelihood infrastructure construction and large-scale equipment renewal, manufacturing investment and infrastructure investment grew rapidly, driving a rebound in overall investment growth. In the first two months, fixed asset investment (excluding rural households) rose 4.1% year on year, accelerating 0.9 percentage points from the previous year. Among these, infrastructure investment rose 5.6%, accelerating by 1.2 percentage points from the previous year, while manufacturing investment grew 9%, significantly outpacing the growth of total investment. From an employment perspective, despite fluctuations in the monthly surveyed urban unemployment rate due to the Spring Festival, the overall employment situation has remained generally stable. In the first quarter, the national average surveyed urban unemployment rate was 5.3%, essentially unchanged from the previous year.

The new and positive development momentum is reflected in the steady development of new quality productive forces, the ongoing impact of macroeconomic policies, and enhanced market expectations and confidence. With regard to new quality productive forces, various sectors are intensifying their efforts to promote the integrated development of scientific and technological innovation and industrial innovation. They are actively driving the development of the green and low-carbon economy, which has led to the rapid emergence of new growth drivers and the flourishing of green industries. The value added of high-tech manufacturing enterprises above designated size increased 9.1% year on year in January and February, while NEV output rose 47.7%. These growth rates are particularly notable as they build upon the relatively high base established last year. Regarding policy effectiveness, measures supporting major national strategies, enhancing security capacity in key areas, and promoting large-scale equipment renewal and consumer goods trade-ins have continued to stimulate production and demand since the beginning of this year. The output of excavating and shoveling transportation machinery, household refrigerators, and household washing machines achieved double-digit growth from January to February. Similarly, retail sales of household appliances, audiovisual equipment, furniture, office supplies, and communication equipment by enterprises above designated size sustained double-digit growth during the same period. Regarding market expectations, macroeconomic policies have become more proactive and effective, with new breakthroughs achieved in emerging fields such as AI. Notably, General Secretary Xi Jinping's important speech at the symposium on private enterprises has significantly bolstered development confidence among private enterprises and across society. In February, the manufacturing PMI stood at 50.2%, up 1.1 percentage points from the previous month, while the non-manufacturing business activity index reached 50.4%, an increase of 0.2 percentage points.

Overall, the economy performed stably in January and February, with key indicators showing steady growth, new growth drivers being cultivated and strengthened, and development quality steadily improving. These outcomes were achieved against the backdrop of increasing external challenges and a high base of comparison from the same period last year. Attaining these results was no small feat, underscoring the impressive resilience of the Chinese economy. However, it should also be noted that the external environment is growing increasingly complex and severe, characterized by numerous unstable and uncertain factors. Additionally, domestic demand remains weak, and many companies continue encountering challenges in their production and operations. Moving forward, we will earnestly implement the guiding principles from the Central Economic Work Conference and the annual "two sessions." We will adopt more proactive and effective macroeconomic policies, expand domestic demand across all sectors, accelerate innovation-driven development, enhance reform and opening up, and promote sustained economic recovery and growth. These efforts aim to effectively safeguard and improve people's livelihoods. Thank you.