Full transcript of NDRC presser on Tuesday, October 8
What did China's top economic planner promise?
At a joint press conference on September 24, held by China's financial authorities—the People's Bank of China (PBoC), the National Financial Regulation Administration (NFRA), and the China Securities Regulatory Commission (CSRC)—officials unveiled their plans to inject stimulus into the economy, sparking a historic market rally.
Subsequently, on September 26, the Political Bureau of the Communist Party of China (CPC) Central Committee met to assess the current economic situation and proposed a "package of incremental policies" aimed at further stabilizing the economy.
Then, on Tuesday, October 8, the National Development and Reform Commission (NDRC), the government cabinet's top economic planner, convened a press conference to expand on the Politburo's proposals.
China's stock market, already in a state of frenzy since the initial financial stimulus, closely monitored the October 8 presser, albeit with caution.
Reactions from the market are covered in a post by Jiang Jiang at Beijing Scroll. The following is a full-text translation of the NDRC press conference.
国新办举行新闻发布会 介绍“系统落实一揽子增量政策 扎实推动经济向上结构向优、发展态势持续向好”有关情况
The State Council Information Office held a press conference to introduce the "Comprehensive Implementation of a Package of Incremental Policies to Promote Stable Economic Growth, Optimize Economic Structure, and Ensure Continuous Economic Recovery"
Zheng Shanjie, Chairman of the National Development and Reform Commission (NDRC):
Dear friends from the media, good morning! I am pleased to attend today's press conference.
On September 26, the Political Bureau of the Communist Party of China (CPC) held a meeting to analyze and study the current economic situation and make further arrangements for economic work. The meeting introduced "a package of incremental policies," highlighting the great importance that the CPC Central Committee, with Comrade Xi Jinping at its core, places on economic work and showcasing confidence and determination to promote sound and steady economic growth. On September 29, the State Council held an executive meeting, which made arrangements for the implementation of the package of incremental policies.
Today, I would like to take this opportunity to give a brief overview of the theme "comprehensive implementation of the CPC Central Committee and State Council's decisions and arrangements, systemic implementation of a package of incremental policies." Following that, my four colleagues and I will do our best to address any questions you may have. If I may, I would like to take a moment to provide you with some brief updates on two areas.
Current Economic Situation
We believe that to accurately understand the reality of China's economy, it is essential to adopt a comprehensive, objective, and sober approach. This involves examining the macroeconomic landscape and development trends and taking into account both the current situation and future prospects.
From a macro perspective, China's economy remains generally stable with steady progress, despite the challenges posed by an increasingly complex domestic and international environment. New-quality productive forces are forming more rapidly, the well-being of the people is continuously improving, significant progress has been made in forestalling major risks, high-quality development is advancing, and overall social stability is maintained.
We can summarize this situation with two keywords: "stability" and "progress."
"Stability" is primarily reflected in the overall economy. On the supply side, agricultural production remains stable, with a bumper harvest expected. Industrial growth has been relatively strong, with the value-added output of industries above a designated size increasing by 5.8% year-on-year in the first eight months. Key drivers, such as new energy vehicles and integrated circuits, grew by 31.3% and 26.6%, respectively. The service sector remains stable, with the index of services production (ISP) increasing by 4.9%. In information transmission, software, and IT services, the ISP grew by 11.9%, while in leasing and business services, it grew by 7.7%.
On the demand side, investment and consumption are steadily growing. Manufacturing investment that is of major future significance, and which supports and promotes sustainable development, increased by 9.1%, outpacing overall investment by 5.7 percentage points. The large-scale equipment upgrades and trade-in of consumer goods are yielding significant results, with car and home appliance sales recovering relatively quickly. Major carmakers' passenger car retail sales are expected to rise by 10% in September compared to the previous month. In the first eight months, exports in RMB terms grew by 6.9%. Regarding employment and prices, 9.44 million new urban jobs were added, an increase of 200,000 year-on-year. The Consumer Price Index (CPI) rose by 0.2% year-on-year, with a 0.6% increase in August alone.
"Progress" is mainly reflected in structural optimization. New growth drivers are emerging and strengthening more rapidly, with the value-added output of high-tech and equipment manufacturing growing by 8.9% and 7.6%, respectively, in the first eight months. The structure of the three major demands [consumption demand, investment demand, and external demand] is becoming more balanced, with ongoing optimizations and breakthroughs in key areas. new urbanization and coordinated development between regions are further advancing. Major economically developed provinces are playing a leading role.
While acknowledging the achievements, we must also recognize the difficulties and challenges we have encountered. The external environment is becoming increasingly complex and challenging. The latest forecast from the International Monetary Fund (IMF) projects global economic growth at 3.2% this year, lower than last year. Major economies are facing sluggish growth and substantial debt burdens. Many have recently implemented rate cuts, leading to notable global market volatility. Additionally, the rise in trade protectionism is adding to uncertainties. All these factors will have an adverse impact on China through channels such as trade, investment, and finance.
Domestically, the Chinese economy is facing increased downward pressure, with fluctuations in key industrial, investment, and consumption indicators since the third quarter. Some industries are grappling with excessive competition, while others are struggling to upgrade, transition, or adapt. For some enterprises, increased production no longer results in additional income or profit, while others are encountering significant operational difficulties. Certain areas continue to harbor considerable risks.
Overall, from a development trend perspective, the fundamentals supporting China's economic growth remain unchanged. The favorable conditions, such as strong market potential and robust economic resilience, continue to hold. With the ongoing effects of existing policies, particularly the implementation of incremental policies, recent market expectations have improved significantly. The Purchasing Managers' Index (PMI) for manufacturing has rebounded swiftly, the stock market is recovering, and consumption during the 7-day National Day holiday was strong. We remain optimistic about achieving the year's economic and social development goals and maintain confidence in stable and healthy economic growth.
Considerations for Implementing the Package of Incremental Policies
In response to the new situations and challenges in economic operations, the CPC Central Committee and the State Council have made scientific decisions and acted decisively. While effectively implementing existing policies, they have introduced a package of incremental measures, focusing on five key areas: strengthening counter-cyclical macroeconomic adjustments, expanding domestic demand, increasing support for enterprises, stabilizing the property market and reversing its downturn, and boosting the stock market. These measures are designed to ensure the continued recovery of the economy. We are not only addressing immediate challenges but also focusing on solving key mid-to-long-term issues, with an emphasis on economic foundations, future significance, sustainability, and stable growth to foster high-quality development.
The package of incremental policies attaches more importance to three areas:
Attaching more importance to the quality of economic development
Attaching more importance to supporting the healthy development of the real economy and businesses
Attaching more importance to balancing high-quality development and high-level security.
The formulation of these policies adheres to four key principles:
Goal-oriented. Keeping the annual objectives in sight, making full use of policy space to unleash greater potential.
Problem-oriented. Focusing on business and societal concerns, taking more targeted measures on difficulties in socio-economic development and business operations.
Systematic policy-making. Ensuring coordination across fiscal, financial, consumption, investment, real estate, stock market, employment, and social welfare policies to enhance the consistency and synergy of macroeconomic policies.
Combining short-term and long-term goals. Coordinating the transition of policies from this year to next year to ensure stable and healthy economic development and a smooth conclusion of the 14th Five-Year Plan (2021-2025).
The implementation of the package of incremental policies is a comprehensive and systematic endeavor that should be more targeted, precise, effective, and sustainable. Specifically, there are five "responses".
In response to the downward pressure on economic performance, strengthen the counter-cyclical adjustments of macroeconomic policy. All areas should apply sustained and intensified efforts.
In response to issues such as insufficient effective domestic demand, direct incremental policies that target domestic demand towards improving people's well-being and promoting consumption, while actively leveraging the driving role of investment.
In response to the current difficulties faced by some enterprises in production and operations, intensify efforts to support them, effectively optimize the business environment, and help businesses overcome challenges.
In response to the continued sluggishness of the property market, implement comprehensive policy measures to halt its decline and stabilize the market.
In response to the recent stock market shocks and downturn, introduce a series of strong and effective measures to boost the stock market.
Next, we will collaborate with various departments and regions to comprehesively and promptly implement the decisions and plans of the CPC Central Committee and the State Council. We will systematically implement the package of incremental policies, strike a combination of policy measures, and address blockages and barriers in policy implementation. Our commitment is to ensure stable economic growth, optimized economic structure, and continuous economic recovery. We aim to achieve significant results within the year and lay a solid foundation for the successful conclusion of the 14th Five-Year Plan, as well as a strong start to the 15th Five-Year Plan next year. Thank you.
China Central Television (CCTV), China Media Group:
Chairman Zheng, thank you for your time. In your opening remarks, you mentioned the implementation of the package of incremental policies proposed by the Politburo, covering areas such as fiscal policy, finance, consumption, and investment. Could you please elaborate on the specific measures being taken to execute these policies? Thank you.
Zheng Shanjie:
Thank you for your question. You've raised a very systematic and comprehensive question, which is also something that has garnered significant public attention recently. As I mentioned earlier, I have outlined the primary considerations behind these incremental policies. Now, let me provide an overview of the specific measures being implemented to systematically carry out this package of policies, which focus on five key areas.
Strengthen and Enhance Macroeconomic Policies
First, we will strengthen counter-cyclical macroeconomic adjustments. We will enhance the coordination and integration of fiscal, tax, monetary, financial, investment, consumption, and income distribution policies to ensure innovative and cohesive macroeconomic measures. We aim to improve the timing, extent, and efficiency of policy implementation to maximize their combined effects. Necessary fiscal spending will be ensured and accelerated to enhance its positive impact on economic development. Additionally, stronger support will be provided for local governments in debt swaps to address debt risks. We will also lower the required reserve ratio, implement impactful interest rate cuts, and support large state-owned commercial banks in replenishing core Tier 1 capital to enhance the investment and financing environment for businesses and facilitate macroeconomic policy implementation. Measures to lower the required reserve ratio and reduce interest rates have already been introduced recently, with additional financial policies currently in progress.
Second, we will expedite the implementation of major reforms. Over 300 key reform measures proposed by the Third Plenary Session of the 20th CPC Central Committee are currently being implemented in an orderly manner. We will introduce a series of ready, tangible, and effective reform measures that promote sustained and healthy economic development. These include formulating guidelines for establishing a unified national market, releasing a new version of the Negative List for Market Access, establishing investment and growth mechanisms for future industries, improving the integration of real and digital economies, and enhancing the social credit system. Additionally, we will intensify efforts to attract and stabilize foreign investment, promote opening up, revise the Catalogue of Encouraged Foreign Investment Industries, launch a new batch of major foreign investment projects, and introduce more open transit visa-free policies.
Third, we will strengthen the consistency of macroeconomic policy orientation. We will utilize consistency evaluation mechanisms to ensure that policy objectives, tools, extent, timing, and implementation pace are aligned across different sectors. New policies will undergo thorough assessments within the consistency evaluation mechanism before being launched. During implementation or adjustment, policies must remain consistent with the broader macroeconomic policy orientation. Post-implementation evaluations will be conducted promptly to assess effectiveness. Any inconsistencies identified during the above process will be corrected immediately or lead to a suspension of the policy.
Further Expand Domestic Demand
In terms of consumption, the focus will be on combining measures that boost consumption with those that improve people's well-being, aiming to increase incomes for low- and middle-income groups and implement a series of consumption-stimulating campaigns. Specifically, these policies can be divided into three key areas:
First, we will increase support for vulnerable groups. For instance, China has provided one-off living cost subsidies to those in need, including people in extreme difficulty and orphans, ahead of the National Day on October 1. Additionally, we will increase the amount of student financial aid and expand its coverage, raise the maximum limits for National Student Loans for both undergraduates and graduates and work to reduce interest rates on these loans.
Second, we will boost consumption of big-ticket items in alignment with the large-scale equipment upgrades and trade-in of consumer goods, which will not only unlock demand potential but also advance energy-saving and carbon-reduction efforts, supporting a full green transition. Comprehensive policies for consumer goods trade-ins have been implemented, with full funding in place, resulting in significant growth in passenger car sales and reversing the decline in home appliance sales. We will intensify the promotion of these policies to further drive the growth of consumer goods consumption.
Third, we will expand service consumption in areas such as elderly care and childcare, addressing key societal concerns for both the elderly and the young. We will support and regulate private sector involvement in these industries, enhance the childbearing and child-rearing support policy system, and accelerate improvements in basic public services for childbearing and child healthcare. Additionally, we will foster new forms of consumption, including digital and green consumption, to better align supply with the middle- and high-end demand.
In terms of investment, the focus will be on increasing effective investment and accelerating concrete results.
First, we will fully leverage the available funding sources for this year. For instance, China's central government has allocated 700 billion yuan ($98 billion) from its budget towards the "two major projects"—major national strategies and security capacity-building in key sectors—and the large-scale equipment upgrades and trade-in of consumer goods. Additionally, 1 trillion yuan ($141 billion) in ultra-long special government bonds has already been deployed to support projects and local governments. We are expediting project construction and fund allocation. We will also accelerate the use of local government special-purpose bonds to start project construction.
Second, we are formulating next year's project list for the "two major projects" and investment plans under the central government budget. Upon review, it has been identified that the resumption of existing infrastructure projects, granting permanent urban residency to eligible rural migrants, cultivating high-standard farmland, constructing underground utility tunnels, and urban renewal projects present significant demand for incremental funds. Next year, we will continue to issue ultra-long special government bonds to support the "two major projects." Within this year, we will issue, in advance, next year's 100-billion-yuan ($14 billion) central government budget investment plan, along with the 100-billion-yuan project list for the "two major projects." We will support local governments in speeding up preparatory work and initiating early-stage project implementation. Additionally, a key related task is to accelerate the construction of people-centered new urbanization.
Third, we will optimize and implement major investment policies. We are exploring the possibility of moderately expanding the scope, scale, and funding ratio of local government special-purpose bonds as project capital, and we will promptly issue specific reform measures to broaden their application scenarios. Our goal is to further stimulate private investment enthusiasm, effectively implement the new mechanism of public-private partnerships (PPP), and support private capital involvement in the construction of "new infrastructure" and other sectors.
Strengthening Support for Businesses
First, we will regulate law enforcement and regulation related to enterprises. We will further regulate administrative law enforcement related to businesses, adopting a more inclusive, prudent regulatory approach and flexible law enforcement. Law enforcement must not cross regional boundaries in violation of regulations, nor should it be conducted for profit. Penalties, inspections, and seizures must strictly follow legal procedures. We will also monitor regions where penalty and confiscation revenues have shown abnormal growth and conduct inspections if necessary. Meanwhile, we are expediting the legislative process for the private economy promotion Law to foster a more favorable environment for the non-public sector.
Second, we will clarify the future of interim policies in advance. Upon review, by the end of the year, certain measures such as tax cuts, fee reductions, unemployment insurance (refunds) to support businesses and stabilize employment, and skill development subsidies will expire. Relevant departments will, after study and evaluation, determine whether to extend these policies and if so, for how long. Policies that benefit business operations and promote healthy development will only be expanded, not reduced.
Third, we will ensure the proper allocation of resource factors. The policy of loan renewals without requiring repayment of principal, previously applicable to small-and-micro-sized enterprises, has already been extended to medium-sized enterprises, allowing more businesses to benefit. Recently, the NDRC and the National Financial Regulatory Administration jointly established a coordination mechanism to support financing for small-and-micro-sized enterprises, guiding financial institutions to provide financing based on market principles, aiming to ensure that all eligible loans are granted. Meanwhile, we are exploring the possibility of managing the energy consumption of certain eligible major projects separately under the 14th Five-Year Plan and we encourage regions to increase their renewable energy consumption by purchasing green electricity and renewable energy certificates.
Fourth, we will work to stabilize the property market and reverse its downturn. Systematic and comprehensive measures will be implemented, including strict controls on new housing developments, optimizing existing housing projects, and improving construction quality. We will intensify the use of the "whitelist" policy for housing projects eligible for loans, utilize special-purpose bonds to revitalize idle land, and adjust housing purchase restrictions to stimulate demand for both first-time homebuyers and those seeking improved living conditions. Additionally, we will accelerate the sale of existing unsold homes, lower interest rates on existing mortgage loans, promptly improve land, fiscal, tax, and financial policies, and promote the establishment of a new model for real estate development. Policies to lower interest rates on existing mortgage loans have already been introduced. Some cities have fully lifted housing purchase restrictions, while others have further reduced restricted areas or eased purchase conditions. Other supportive policies are actively being planned and implemented.
Fifth, we will strive to bolster the stock market. Relevant departments will implement a series of strong and effective measures to attract long-term capital into the market, clear the obstacles for social security, insurance, and wealth management funds to invest in the stock market, support mergers & acquisitions, and restructuring of listed companies, and steadily advance the reform of mutual funds. Additionally, we are exploring policies to protect medium- and small-sized investors. All of these initiatives are being accelerated.
In the next stage, we will closely monitor evolving circumstances, evaluate the effectiveness of policies in real-time, and promptly explore new incremental policies. We will conduct further policy research, reserve additional policy options, and maintain consistency between this year's and next year's policies and government efforts, ensuring stable economic growth, optimized economic structure, and continuous economic recovery. Thank you!
The Cover
Earlier, Chairman Zheng mentioned the need to expand effective investment. Could you elaborate on the policies and measures that will be implemented to ensure timely investments and concrete results? Thank you.
Liu Sushe, Deputy Chairman of the NDRC:
Thank you for your question. Since the start of this year, we have been focusing on key sectors and critical areas, leveraging the government's guiding role in investment with a strong emphasis on expanding effective investment. Let me share some data to give you an overview of this year's situation.
Regarding government investment, almost all of the nearly 6 trillion yuan ($850 billion) has been allocated to specific projects, which are now progressing to yield tangible results. Of the 700 billion yuan from the central government budget, funds have been assigned to specific projects, with 58% of them having already commenced. For the 1 trillion yuan in ultra-long special government bonds, 700 billion yuan has been allocated to the "two major projects," and 50% of projects have already started. As for the 3.12 trillion yuan ($442 billion) in special-purpose local government bonds earmarked for project construction, by the end of September, 2.83 trillion yuan, or 90%, had been issued, with 85% of the projects started. The 1 trillion yuan in government bonds issued in the fourth quarter of last year for post-disaster reconstruction has seen all projects begin by the end of June this year, with 770 billion yuan already invested.
On the private investment front, we have promoted 1,635 major projects to private capital this year, of which 441 have successfully attracted private investment, amounting to a total of 344.8 billion yuan ($48 billion). Progress has also been made in involving private capital in major infrastructure projects, such as nuclear power and railways. Additionally, we have selected the first batch of 189 key national private investment projects and provided support in resolving issues like financing. We have also standardized the new mechanism of PPP, focusing on user-fee models, all adopting the franchise model, and prioritizing private enterprises for specific projects. Demonstration projects worth 1,410 billion yuan ($199 million) have already been made public.
In line with the directives from the Politburo meeting and the State Council executive meeting, moving forward, we will collaborate with relevant departments to coordinate existing and incremental policies aimed at expanding effective investment and ensure stable investment growth. I will outline five key areas of policy implementation going forward:
First, we will expedite the release of part of 2025's project list for the "two major projects" and the investment plans under the central government budget. Supporting the "two major projects" is a strategic decision of the CPC Central Committee aimed at strengthening the nation and achieving national rejuvenation. The issuance of ultra-long special government bonds will continue in 2025, and we will optimize the allocation of these funds, ensuring strong support for the "two major projects." Currently, the NDRC, in coordination with relevant departments and local governments, is preparing a batch of major projects within the "two major projects" and accelerating innovations in policy, planning, and institutional frameworks. The continuous improvement of the investment mechanism, the ongoing enhancement of investment efficiency, and the coordination of "hard investment" with "soft innovations" are all driving progress toward achieving the goals of the "two major projects."
Investment plans under the central government budget will continue to support foundational, public welfare, and long-term projects, accelerating efforts to address shortcomings in China's modernization efforts. As Chairman Zheng mentioned, issuing project lists and investment plans in advance helps to speed up preliminary work and initiate project implementation. To this end, we plan to issue, by the end of this month, a 100-billion-yuan project list for the "two major projects" and a 100-billion-yuan central government budget investment plan in accordance with procedures. The projects involved have been carefully selected by the NDRC in collaboration with relevant government departments, meet the investment criteria, have completed preliminary preparations, and are ready for implementation, allowing for concrete results within the year.
Second, we will accelerate the implementation of the 102 major projects outlined in the 14th Five-Year Plan. Of the 5,100 specific projects involved, 92% are either under construction or have been completed. Going forward, we will strengthen coordination, ensure that all parties take full responsibility, enhance funding support, and ensure resource allocation to expedite the start of the remaining 409 projects as soon as possible, ensuring the successful completion of the 14th Five-Year Plan by the end of next year.
Third, we will fully utilize local government special-purpose bonds. On one hand, we will urge relevant local governments to complete the issuance of the remaining 290 billion yuan in special-purpose local government bonds by the end of October, and simultaneously accelerate the implementation of projects funded by these bonds and the pace of fund utilization to achieve more concrete results. On the other hand, in response to some prominent issues in the issuance, use, and management of local government special-purpose bonds, the NDRC and the Ministry of Finance are currently working on plans to moderately expand the application scenarios for these bonds, appropriately increase the scope, scale, and funding ratio of these bonds as project capital, explore the launch of pilot programs that grant autonomy in project approval, and implement a "fast track" for the resumption of old projects. New measures to optimize and improve the management of local government special-purpose bonds will be introduced as soon as possible.
Fourth, we will strengthen the full-process management of government-invested projects. Project scheduling will be enhanced primarily through online monitoring, on-site supervision, and field inspections. We will urge and guide local governments and departments to effectively implement various government investment projects and accelerate their progress. Additionally, we will vigorously promote reforms in the investment approval system, promptly study and introduce policies to further improve the government investment decision-making mechanism, and increase the returns on government investments.
Fifth, we will support and encourage the healthy development of private investment. We will promote private capital participation in national projects, with a focus on introducing high-quality projects to private investors and encouraging greater private capital involvement in major infrastructure projects such as railways, energy, and water conservancy. We will expedite the selection and formation of a new batch of key national private investment projects. At the same time, we will standardize the implementation of the new PPP mechanism, support more eligible private investment projects in issuing infrastructure REITs, and deepen pilot cooperation in debt-equity combination financing.
Thank you.
Lianhe Zaobao (Singaporean newspaper):
How does the Chinese government plan to boost private entrepreneurs' confidence in investment and attract more foreign investment? What policies will be introduced to further improve the business environment? Thank you.
Zheng Bei, Deputy Chair of the NDRC:
I'll take this question. It's a very important one. The Politburo meeting on September 26 emphasized the importance of helping enterprises overcome challenges, further regulating law enforcement and regulatory actions related to businesses, and optimizing a first-rate business environment that is market-oriented, law-based, and internationalized. The NDRC will adhere to a problem-solving approach and work with relevant departments to continuously improve the business environment, focusing on three main areas:
First, we will further improve the legal framework related to enterprises. On one hand, we will accelerate the legislative process for the private economy promotion law, ensuring equal treatment for state-owned and private enterprises in legal terms. We will expedite the revision of the Bidding Law to address local protectionism and ensure fair market competition among enterprises of all ownership types. Furthermore, we will promote the revision of the Regulations on Ensuring Timely Payments to Small-and-Medium-Sized Enterprises (SMEs) to encourage prompt payment of receivables to SMEs by government agencies, public institutions, and large enterprises. On the other hand, we will fast-track the review and elimination of regulations and policies that involve unequal treatment of enterprises, removing institutional barriers to fair competition.
Second, we will further standardize law enforcement and regulatory actions related to enterprises. We will push for improvements in administrative discretion standards, promoting a more inclusive and prudent regulatory approach and flexible law enforcement to avoid or minimize disruptions to normal business operations. We will also regulate cross-regional administrative law enforcement, establishing and improving inter-regional law enforcement assistance systems to prevent selective or profit-driven law enforcement. In addition, we will strengthen the supervision of administrative law enforcement to firmly address improper fees, fines, and impositions, ensuring that violators are held accountable.
Third, we will further assist enterprises in addressing practical difficulties. We will fully utilize the interdepartmental joint meeting mechanism to promote the growth and development of the private economy, establish and maximize the use of a comprehensive service platform for private economy development, and strengthen regular communication across national, provincial, municipal, and county levels. This ensures that we listen closely to enterprises' concerns and resolve their pressing issues. For example, in response to the financing difficulties frequently raised by enterprises, we have leveraged the interdepartmental joint meeting mechanism to expand the policy of loan renewals without requiring repayment of principal, gradually extending this support from small-and-micro-sized enterprises to medium-sized enterpises in technology, manufacturing, and agriculture. This initiative has improved the efficiency of loan renewals and reduced financing costs.
As for your question on attracting more foreign investment, Chairman Zheng has already addressed this. We will adopt a five-pronged approach, including increasing and stabilizing foreign investment, further opening up to the world, and launching a new batch of major foreign investment projects. These efforts aim to encourage foreign enterprises to deepen their presence in China and succeed in the Chinese market. Thank you.
Reuters:
Could you provide an estimate of the scale of this policy package and its objectives? Will the 5% economic growth target for this year be met? Also, do you expect the current deflationary pressures on the economy to ease? Thank you.
Zhao Chenxin, Deputy Chairman of the NDRC:
Thank you for the question from Reuters. The issues you raised can be found in the briefing provided by Chairman Zheng earlier. For example, the formulation of this package of incremental policies attaches more importance to three areas and adheres to four key principles. This means we place greater emphasis on the quality of economic development, supporting the healthy development of the real economy and businesses, and balancing high-quality development and high-level security. We also adhere to a goal-oriented, problem-oriented, systematic approach while combining short-term and long-term goals.
Chairman Zheng highlighted several keywords in his briefing. For example, the package of incremental policies is described as a comprehensive and systematic endeavor—where "comprehensive" and "systematic" are the keywords. Additionally, in terms of implementation, we will focus on being more targeted, precise, effective, and sustainable, as Chairman Zheng explained in detail. Grasping these core elements is essential to understanding the essence of the package of incremental policies. The overall goal of this package is to fully unleash society's enthusiasm, initiative, and creativity in driving high-quality development and promoting sustained economic recovery and growth.
In the first half of this year, China's economy grew by 5%, with employment and prices remaining generally stable. Today is October 8, and the third quarter has just passed. Based on the information we have, the Chinese economy has maintained overall stability and continued to make steady progress. As the various decisions and arrangements set by the CPC Central Committee and the State Council are implemented and the effects of incremental policies continue to emerge, we expect further development momentum to be unleashed, market confidence to increase, and the foundation for high-quality development and stable economic performance to be strengthened. We have the conditions, capability, and confidence to meet the annual economic and social development goals. Thank you.
James Mayger, Bloomberg News:
As China's economy transitions toward high-quality development, how will the country generate employment opportunities for workers moving out of labor-intensive industries such as traditional real estate? Particularly considering the youth unemployment rate was around 18% in August this year, how will China achieve full employment? Additionally, you mentioned that the remaining local government special-purpose bonds will be issued by October. Does this imply that China might issue new bonds in November and December?
Li Chunlin, Deputy Chairman of the NDRC:
Thank you for your question. The employment issue you mentioned is actually addressed within the package of policies aimed at stabilizing growth that Chairman Zheng briefly outlined earlier. One of the primary areas that the package attaches more importance to is to promote high-quality and full employment.
Since the beginning of the year, various policies aimed at stabilizing growth and employment have delivered steady results, keeping the overall employment situation stable. In the first eight months of this year, the average of surveyed urban unemployment rate stood at 5.2%, a decrease of 0.1 percentage points year-on-year. It is very natural for labor to shift from industries with lower productivity to those with higher productivity. While technological progress drives economic transformation and industrial upgrading, it also creates many new professions and employment opportunities. For example, the booming development of the low-altitude economy has led to the creation of new jobs, such as drone operators. It is estimated that China currently has a shortage of 1 million drone operators. Similarly, the new energy vehicle (NEV) maintenance sector currently employs fewer than 100,000 people. Projections suggest that by 2025, China will face a shortage of 1.03 million professionals in NEV maintenance and R&D, which represents a significant pool of new jobs.
The Politburo meeting on September 26 laid out clear arrangements for strengthening employment. Ultimately, expanding employment depends on development, especially high-quality development. Moving forward, the NDRC will actively implement the employment-first strategy, enhance macro policy coordination, promote a correct perspective on employment, and leverage development to drive employment. Based on Chairman Zheng’s briefing, I would like to add four points:
First, we will expand effective demand to create new sources of employment growth. We will leverage the guiding role of central government budget investments and adopt multiple measures to stimulate private investment. As Chairman Zheng and Deputy Chairman Zheng Bei mentioned earlier, private investment is crucial. We will increase support for major initiatives such as "two major projects" and "two news" policies, as well as projects that are effective in creating jobs. For example, last year, the NDRC allocated 10.9 billion yuan ($1.5 billion) from the central government budget for work relief programs, creating 290,000 jobs for low-income rural populations, bringing an average income of 10,000 yuan ($1,417) to each person. The "two major projects" and "two news" policy provide vast job opportunities.
Second, we will enhance the employment-generating potential of emerging industries. We will tailor the development of new-quality productive forces to local conditions and focus on strategic emerging sectors and future industries, including next-generation information technology, energy conservation and environmental protection, biotechnology, new materials, and new energy to create more knowledge- and skill-based jobs.
Third, we will broaden employment opportunities in the daily life service industry. We will promote innovative growth in service consumption, cultivate new consumption scenarios, and foster the development of the "silver economy." As China's aging problem continues to deepen annually, it is essential to tap into the employment potential of social service sectors such as elderly care, domestic services, childcare, and logistics. For example, China's domestic service industry currently employs around 30 million people, but the market demand is as high as 50 million, with a particularly acute shortage of high-quality, skilled workers.
Fourth, we will leverage vocational education and skills training to boost employment. By coordinating various resources and channels, we will increase investment in skills training infrastructure, guiding local governments to develop and fully utilize public training bases and instruction centers that integrate technical training with academic education. These facilities will align training programs with corporate employment needs and offer order-based, targeted, and project-based training, enabling workers to acquire the skills needed to improve their employment prospects and income.
That's all from me. Thank you.
Liu Sushe:
Regarding the special-purpose bonds question, this was already covered in the earlier part of the briefing. Of the 3.12 trillion yuan in special-purpose bonds allocated for project construction this year, 2.83 trillion yuan has been issued by the end of September. We are urging local governments to complete the issuance of the remaining 290 billion yuan by the end of this month.
Moving forward, the key focus is to fully utilize and maximize the effectiveness of special-purpose bonds, ensuring that projects funded by special-purpose bonds commence as soon as possible and that the bonds deliver real benefits. Meanwhile, the NDRC and the Ministry of Finance are working on new measures to improve the management of local government special-purpose bonds. Once introduced, these measures will help special-purpose bonds play an even greater role in promoting investment. That's all I have to add.
Economic Daily:
You mentioned earlier that there is significant demand for incremental funding in the urban renewal sector as part of the policy package. We understand that urban renewal includes areas such as the renovation of old residential communities and the upgrading of underground utility tunnels. Could you elaborate on the specific support policies in place, especially regarding financing? Thank you.
Liu Sushe:
Thank you for your question. At present, China's urban development has entered a stage where both new construction and the renewal of existing infrastructure are equally important. In the coming years, the tasks related to urban renewal and renovation will become increasingly demanding. Take the key renovation project of urban underground utility tunnels as an example. It is estimated that nearly 600,000 kilometers of gas, water supply, sewage, and heating pipelines will need to be upgraded over the next five years, with a total investment demand of approximately 4 trillion yuan ($567 billion).
The package of incremental policies sets clear goals to strengthen key urban renewal projects. Moving forward, we will continue to coordinate various funding sources and release project lists and investment plans in advance to expedite the start of eligible projects. Simultaneously, we will establish a sustainable renovation and renewal mechanism to further improve urban infrastructure, address existing shortcomings, and fully tap into the vast potential of China's new urbanization, thereby creating new drivers for economic growth. There are several key actions we plan to take:
First, we will advance urban renewal projects systematically and by category. Prioritizing tasks based on urgency, we will focus on eliminating safety hazards in the short term; in the medium term, we will update aging infrastructure; and in the long term, we will enhance the functionality of urban facilities. We will implement a comprehensive urban infrastructure upgrade campaign, giving priority to projects that are critical to public safety and well-being. These include improving the safety of urban utility tunnels, renovating old residential communities, upgrading urban villages, and enhancing urban transportation infrastructure. Additionally, we will work on transforming old neighborhoods and industrial areas, as well as upgrading urban public services in a structured and orderly manner.
Second, we will prioritize a batch of key urban renewal projects in next year's "two major projects" list and central government budget investment plans. Currently, there is a significant funding demand for urban underground utility tunnels, with many projects ready for implementation. In the next phase, we will focus on supporting a batch of key urban renewal projects. In 2023 and 2024, the NDRC has allocated over 470 billion yuan ($66 billion) from the central government budget, newly issued government bonds, and ultra-long special government bonds to support the renovation of urban gas and drainage pipelines, as well as the renewal of old urban communities. Urban renewal will remain a priority for government investment in the coming years, with increased support expected in 2025.
The two 1,000-billion-yuan project lists and investment plans will allocate a portion to urban renewal, with a focus on gas, water, and heating pipeline construction, especially in densely populated cities and central urban areas. These funds will prioritize ongoing projects and those ready to start in the fourth quarter of this year, addressing critical issues such as aging gas pipelines, urban flooding, and waterpipe leakage. Additionally, we will continue to increase central government budget investment in the renovation of old urban residential communities, urban villages, and dilapidated housing. We are also exploring the possibility of making urban renewal projects that generate returns, such as the renovation of old neighborhoods and industrial areas, eligible for local government special-purpose bonds.
Third, we will actively explore and innovate financing models. Urban renewal holds significant market potential, and the scale of investment required is too large for government funding alone. Therefore, it is essential to establish a diversified investment mechanism and attract broad participation from private capital. For sectors with a high degree of marketization and strong business potential, we will enhance the investment mechanism and boost investment efficiency, fully utilizing market mechanisms. In areas with moderate returns where private capital is interested in investing, we will adopt the new PPP mechanism and infrastructure REITs to establish a sustainable renewal and renovation model that integrates government guidance, market operations, and participation from all sectors of society.
Thank you.
Shenzhen TV:
We understand that energy is a critical pillar of economic and social development, and it is also essential for business growth. Could you please elaborate on any specific measures included in the package of incremental policies to ensure energy supply for major projects? Thank you.
Zhao Chenxin:
Thank you for your question. Chairman Zheng Shanjie earlier emphasized the importance of ensuring the availability of key resources. Indeed, energy supply is a crucial part of resource allocation and plays a vital role in supporting high-quality development. It is, without a doubt, the key to sustaining high-quality growth. To implement the decisions from the Politburo meeting on September 26, which focused on strengthening resource allocation and supporting the real economy, the NDRC has further outlined specific measures for managing the amount and intensity of energy consumption.
First, we will effectively expand the space for incremental energy consumption. Since the start of the 14th Five-Year Plan, the NDRC has refined its policies on controlling the amount and intensity of energy consumption, clarifying that newly added renewable energy, as well as coal, petroleum, and natural gas used as raw materials, will be excluded from the total energy consumption calculation. With the rapid growth of renewable energy, this policy can further broaden the scope of energy consumption. Based on current data, there is still room to fully utilize this policy.
In the package of incremental policies, we have further clarified that in the review of energy efficiency and energy-saving targets, energy used as raw materials and non-fossil energy consumption must be strictly excluded. This will guide regions to focus on controlling fossil fuel consumption while encouraging the use of renewable energy through green electricity and renewable energy certificate purchases, thereby creating more space for energy consumption to support economic and social development. At the same time, we will continue to strictly curb the unchecked development of high energy consumption and high emissions projects and control unreasonable increases in energy demand to promote industrial upgrading and sustainable growth.
Second, we will fully tap into the potential for energy conservation within existing energy consumption. Currently, China's total energy consumption is about 10 times the newly allocated energy consumption quota under the 14th Five-Year Plan. Unlocking the energy-saving potential of existing consumption will create vast space for future development. We will coordinate central government budget investments, ultra-long special government bonds, and other financial channels with initiatives such as the "two news" policy to support energy-saving and carbon-reduction upgrades, as well as the modernization of energy-consuming equipment in key sectors. Maximizing the efficiency of existing energy consumption will ensure that both the transformation and upgrading of traditional industries and the development of emerging industries can be sustained with reasonable energy needs.
Third, we will strengthen the policy of managing the energy consumption of major national projects separately. We are exploring the possibility of separately managing the energy consumption of eligible projects—those that significantly boost national productivity, enhance the resilience and security of industrial supply chains, and support the development of new high-quality productive forces—under the 14th Five-Year Plan. The energy consumption of these projects will not be included in provincial governments' energy-saving goal evaluations, ensuring sufficient energy supply for these critical projects.
Moving forward, the NDRC will remain focused on the effective implementation of these policies. We will elevate energy-saving efforts to a higher level with improved quality, strengthen the energy supply required for high-quality development, and provide strong energy support for stable, healthy, and sustainable economic growth.
That concludes my response. Thank you.
The Paper:
Promoting people-centered new urbanization is a systematic task. To help rural migrants willingly, capably, and sustainably settle in cities, what measures are included in the package of incremental policies to accelerate the construction of new urbanization? Thank you.
Zheng Bei:
Thank you for your question. As you mentioned, advancing people-centered new urbanization is indeed a systematic project. Following the issuance of the Five-Year Action Plan on Deepening the People-Centered New Urbanization Strategy by the State Council on July 28, we, in collaboration with relevant departments, have been working on refining key tasks for this year and the next. We are conducting specialized training at the provincial, municipal, and county levels, with a focus on launching pilot projects that address bottlenecks in new urbanization. In the package of incremental policies, we are increasing policy support and strengthening implementation efforts, particularly around the four key campaigns outlined in the Five-Year Action Plan.
For the first campaign to grant permanent urban residency to a new wave of rural migrants, we are focusing on removing the obstacles faced by over 170 million rural migrant workers and their families during the urbanization process. To tackle the challenge of obtaining permanent urban residency, especially in larger cities, we are prioritizing the relaxation of household registration (hukou) requirements in cities with permanent populations exceeding 3 million. We are also introducing community-based public hukou systems and improving policies for rental-based household registration. In response to the pressing concerns of rural migrants regarding education and healthcare, we are increasing the allocation of ultra-long special government bonds to support the construction of public high schools and hospital renovations in cities with high population inflows.
For the second campaign to promote in situ urbanization in promising areas, we are focusing on strengthening the capacity of county-level towns, which currently face challenges such as insufficient infrastructure and weak industrial foundations. We are actively supporting the development of county-level infrastructure and industrial facilities through local government special-purpose bonds and mid-to-long-term loans from policy banks. Additionally, we are fostering industrial cooperation between the central and western regions and the more developed eastern regions to facilitate the implementation of a series of major projects.
For the third campaign to develop modern metropolitan areas, we are focusing on resolving inter-city connectivity issues, such as disconnected roads and traffic bottlenecks. We will enhance support from local government special-purpose bonds to construct suburban railways, intercity railways, and urban expressways. This will help form commuting, industrial, and living zones, improving the integration of metropolitan areas.
For the fourth campaign to build safe and resilient cities, we are focusing on addressing risks and vulnerabilities in urban construction and operations. Priority is being given to the development of critical infrastructure projects, such as underground utility tunnels. We are planning investment projects for next year in advance and will vigorously implement urban lifeline projects, such as flood control and drainage systems, to improve urban resilience and close safety gaps.
New urbanization is both a "multiplier" for expanding consumption and an "accelerator" for driving investment. In collaboration with relevant departments, we will maximize the role of new urbanization in expanding domestic demand, providing strong support for stable, healthy, and sustainable economic development.
Thank you!
South China Morning Post:
I would like to ask whether the NDRC will consider accelerating the approval and construction of government-invested projects such as local infrastructure, particularly large-scale cross-regional projects. Is there a specific list of projects? Thank you.
Liu Sushe:
The Politburo meeting on September 26 emphasized the importance of issuing and effectively utilizing ultra-long special government bonds and local government special-purpose bonds to better leverage the guiding role of government investment. Given the current economic conditions, appropriately increasing infrastructure investment can help maintain stable overall investment growth and promote the steady, healthy development of the economy. Regarding your question on whether the NDRC will accelerate the approval and construction of local infrastructure projects, I would like to highlight three key points from the NDRC's perspective:
First, it is crucial to choose the right investment direction. We need to focus on the needs of economic development and improving people's living standards, addressing weak areas and filling gaps with precision. For example, urban renewal and renovation, as mentioned earlier, has significant investment potential and obvious socio-economic benefits, making it a key direction for future local infrastructure investments.
Second, thorough preliminary work is key. Local investment projects must undergo in-depth preliminary evaluation. Decisions must be made based on thorough assessments, and project plans should be scientifically determined. Relevant project approval procedures and construction preparations must be completed efficiently and in compliance with regulations to ensure smooth project implementation.
Third, securing project financing is critical. It is essential to thoroughly assess funding solutions and secure financing from all available channels in accordance with regulations. For eligible projects, we will consider increasing central government investment support to ease the financial burden on local governments.
That's all for my response. Thank you.
Southern Metropolis Daily:
As many regions enter the winter peak season for electricity, heating, and gas consumption starting in October, what measures will be taken to ensure a stable energy supply and price stability for essential goods during the winter months? Thank you.
Zheng Shanjie:
Thank you for your question. This is indeed a matter of great public concern. Each year, we face peak energy demand during both the summer and winter seasons. I will ask Deputy Chairman Li Chunlin to respond.
Li Chunlin:
I am happy to answer this question. As Chairman Zheng mentioned, this concerns millions of households. Now that the National Day holiday has passed and late autumn approaches, the northern regions of China will soon enter the heating season, followed by New Year's Day and the Spring Festival. This issue was thoroughly discussed during the Politburo meeting on September 26. Let me briefly address these two aspects.
First, regarding energy supply, the NDRC, in collaboration with relevant departments, has made early arrangements, and overall, the foundation for energy supply security is strong.
For coal, nationwide production has remained stable, and thermal power plants have stockpiled over 200 million tons of coal, providing more than 30 days of supply— a historically high level. In the northeastern region, winter coal reserves are sufficient.
For electricity, by the end of August, China's total installed generation capacity reached 3.13 billion kilowatts. While renewable energy sources such as hydropower, wind, and solar now account for over half of this capacity, increasing the uncertainty in power supply, we can maintain stable and reliable electricity through enhanced smart dispatching and improved cross-province and cross-region support.
As for natural gas, resources are sufficient, with peak-shaving storage capacity increased by 8 billion cubic meters compared to last year. By winter, we plan to fully utilize these storage capacities.
In the future, the NDRC will strengthen monitoring and analysis, ensure that all parties take full responsibility, and make every effort to secure a stable energy supply.
First, we will boost energy production, including coal and natural gas, to ensure that all power plants operate at full capacity, while also promoting the efficient use of renewable energy.
Second, we will strengthen coal and natural gas reserves, improve cross-regional electricity dispatch, meticulously manage energy reserves, and enhance our capacity to meet peak demand.
Third, we will prioritize energy supply for residential use, minimizing the impact of extreme weather and other emergencies on normal production and daily life.
This summer, due to extreme heat, China's maximum power load and daily power consumption reached record highs of 1.451 billion kilowatts and 3.25 billion kilowatt-hours, respectively—106 million kilowatts and 2.4 billion kilowatt-hours more than the 2023 peak. Even under these challenging conditions, the energy supply remained stable and orderly. In cases of temporary power outages caused by typhoons or floods, repairs were quickly organized, and power was promptly restored. With joint efforts, we are confident that this winter's heating season will have sufficient energy supply to support sustained economic recovery and ensure a warm winter for the people.
Regarding the supply and price stability of essential goods, the current market supply of key items remains ample and stable. Summer grain production has increased, and the outlook for the autumn harvest is promising. Pork production is at a reasonable level, and the number of egg-laying hens remains high. The area of vegetables under cultivation has expanded. Additionally, the grain and oil reserves of 36 major cities can meet more than 15 days of consumption, and pork reserves have been strengthened. Northern cities have secured winter and spring vegetable reserves, providing a solid foundation for supply and price stability. Recently, in response to the increase in consumption during the National Day holiday, many local governments initiated low-price sales for public welfare, increasing the availability of affordable vegetables and other goods to ensure market supply and price stability.
Going forward, the NDRC will closely monitor market trends and, in coordination with relevant departments, take early measures based on the characteristics of the winter season, as well as the New Year's Day and Spring Festival periods. We will focus on autumn and winter agricultural production, ensure local authorities take responsibility for reserves, strengthen coordination between production and sales, ensure smooth logistics, promptly release supplies, enhance market supervision, and improve emergency response plans. These efforts will ensure a stable supply of essential goods and create a favorable environment for the effective implementation of the package of incremental policies.
Thank you!
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