Jinan Times APP:

The government work report has set this year's economic growth target at around 5%. What favorable factors will help achieve this objective, given current economic conditions? Thank you.

Fu Linghui:

Thank you for your question. This year's government work report sets a target of around 5% for economic growth. This target was established after considering evolving domestic and international dynamics, as well as other relevant factors, balancing both necessity and feasibility. The economic performance so far this year indicates that the combined macroeconomic policies are taking effect, reform and opening up has deepened, and expectations and confidence have been boosted. This has created a solid foundation for achieving the annual economic growth target. Looking ahead, the Chinese economy is well-positioned with numerous favorable conditions to maintain stable and healthy growth.

First, China possesses a solid industrial foundation, which is complemented by the increasing influence of new growth drivers. China's industrial sector covers all categories listed in the United Nations Industrial Classification, featuring a complete industrial system and robust supporting capabilities. Its manufacturing scale has led globally for 15 consecutive years, with "Made in China" products meeting both domestic and global demands. In recent years, China has pursued innovation-driven development, intensified efforts to achieve breakthroughs in core technologies within key fields, and cultivated new quality productive forces tailored to local conditions. Traditional industries are undergoing upgrades, emerging industries are expanding, and future-oriented industries are developing rapidly. Consequently, new growth drivers are taking shape at an accelerated pace. In the services sector, the integrated development of advanced manufacturing and producer services has gathered momentum. Policies aimed at improving people's livelihoods have created favorable conditions for the growth of the life services sector. Meanwhile, advancements in the AI industry are fueling growth in related industries and opening up new opportunities for sector upgrades.

Second, there is ample market demand, providing a solid foundation for unleashing both consumer and investment potential. The market stands as the most precious resource. China, with its population of over 1.4 billion and a per capita GDP surpassing $13,000, boasts a market of immense potential and breadth, holding within it vast opportunities for development. The growth in residents' consumption capacity and the rapid pace of consumption upgrading are fueling the expansion of new consumption forms, including green and digital consumption, as well as service sectors like elderly care and child care. These developments will emerge as key drivers propelling consumption growth forward. There is vast investment potential in fields such as new industrialization, new-type urbanization, and energy conservation and carbon reduction retrofits. Additionally, substantial investment demand exists in areas concerning people's livelihoods, including basic public services and government-subsidized housing. By fully leveraging these favorable conditions and systematically unleashing the potential of domestic demand, we will be able to facilitate economic circulation.

Third, advancing reform and opening up in all respects will further stimulate development potential and momentum. Reform and opening up is the driving force for Chinese development, serving as a crucial tool for rapidly keeping pace with the times. The third plenary session of the 20th CPC Central Committee proposed more than 300 important reform measures. As reforms in related fields are gradually implemented, these efforts are beginning to yield results in key areas and at crucial points. This progress will help overcome deep-seated institutional and systemic barriers, ensuring the market plays a decisive role in resource allocation. The goal is to create a first-class business environment that is market-oriented, law-based, and internationalized, fostering better interplay between an efficient market and a well-functioning government. This will further unleash and develop productive forces, stimulate economic vitality and enhance momentum.

Fourth, macroeconomic policies are yielding positive results, ensuring a steady economic recovery. A meeting of the Political Bureau of the CPC Central Committee on Sept. 26 last year decisively deployed a package of incremental policies, effectively boosting confidence, stimulating market vitality, promoting economic recovery and achieving remarkable results. Since the beginning of this year, all sectors have diligently implemented the spirit of the Central Economic Work Conference and adopted more proactive and effective macroeconomic policies, which help enhance momentum, stimulate vitality, stabilize expectations, and promote stable and healthy economic development.

It is also important to recognize that this year is the culmination of the 14th Five-Year Plan. Consequently, all stakeholders will focus on completing key tasks, redoubling their efforts, and offering enhanced support to drive stable economic growth. It should be noted that achieving China's GDP growth target, which is around 5%, is by no means easy and requires diligent efforts. Moving forward, we must conscientiously implement the decisions and deployments of the CPC Central Committee, seize the opportunities for economic recovery and growth, intensify the implementation of various macroeconomic policies, comprehensively deepen reform, further open up to the world, and vigorously foster new quality productive forces. We will strive to make significant progress in achieving high-quality development and complete the goals regarding this year's economic and social development, thereby laying a solid foundation for the successful completion of the 14th Five-Year Plan and a strong start to the 15th Five-Year Plan. Thank you.