Press briefing on H1 economic data

0 Comment(s)Print E-mail, July 16, 2014
Adjust font size:

Sheng Laiyun, Director-general of the Department of Comprehensive Statistics and Spokesperson of National Bureau of Statistics

Hu Kaihong, vice director-general of the Press Bureau, State Council Information Office

July 16, 2014

Hu Kaihong:

Ladies and gentlemen, good morning! Welcome to the press conference organized by the State Council Information Office. We are honored to have Sheng Laiyun, spokesperson and director-general of the Department of Comprehensive Statistics of the NBS, here today to summarize the performance of China's national economy during the first half of 2014. Sheng will also take questions from the press. Now let us give the floor to Sheng for a brief introduction.

Sheng Laiyun: Thank you, Mr. Chairman.

Ladies and gentlemen, good morning! I'm very glad to meet you again. According to protocol, let me summarize for you the major index data of the Chinese economy during the first half of the year, before I answer your questions.

Since the beginning of 2014, in the face of complicated external and internal conditions, the Central Party Committee and the State Council have taken the initiative in economic development and adopted scientific measures to stabilize economic growth, promote reforms, enhance restructuring and benefit the people. The economy has been generally stable, structural adjustment achieved stable progress and transformation and upgrading gained momentum with reform and innovation as the engine and restructuring as the booster, during which the power of the market has been made full use of and more attention has been paid to targeted regulation.

According to preliminary estimations, gross domestic product (GDP) of China will be 26.9 trillion yuan (US$4.33 trillion) in 2014, a year-on-year increase of 7.4 percent at comparable prices. Specifically, the year-on-year growth of the first quarter was 7.4 percent and 7.5 percent for the second quarter. The value added of the primary industry was 1.98 trillion yuan, up by 3.9 percent; secondary industry was 12.39 trillion yuan, up by 7.4 percent; and tertiary industry 12.54 trillion yuan, up by 8.0 percent. The gross domestic product in the second quarter of 2014 increased by 2.0 percent.

1. Agricultural production showed good momentum.

The total grain output in 2014 was 136.60 million tons, an increase of 4.75 million tons, up by 3.6 percent. The total output of oil-bearing crops 13.76 million tons, an increase of 340,000 tons, or 2.5 percent. The output of pork, beef, mutton and poultry was 40.03 million tons, a year-on-year increase of 1.7 percent, among which the output of pork was 27.05 million tons, up by 3.0 percent.

2. Industrial production grew steadily.

The total value added of the industrial enterprises above designated size in the first half of the year was up by 8.8 percent at comparable prices, 0.1 percentage point faster than the first quarter. An analysis by types of ownership showed that the value added growth of the state-owned and state holding enterprises went up by 5.5 percent; collective enterprises by 3.2 percent; share-holding enterprises by 10.2 percent; and enterprises funded by foreign investors or investors from Hong Kong, Macao and Taiwan increased by 7.4 percent. In terms of sectors, the added value in mining grew by 4.6 percent on a year-on-year basis, manufacturing by 9.9 percent and electricity, thermal power, gas and the production and supply of water by 4.4 percent. The growth rates in the eastern, central and western regions were up by 8.4 percent, 8.8 percent and 10.8 percent respectively. Out of the 464 kinds of industrial products, 346 kinds increased year-on-year. In the first half of the year, the sales-output ratio of industrial enterprises above designated size reached 97.5 percent, remaining flat compared to the same period last year. The export delivery value reached 5.61 trillion yuan, up by 5.3 percent. In June, the total added value of industrial enterprises above designated size was up by 9.2 percent year-on-year, faster than the previous two months, or up by 0.77 percent month-on-month.

In the first five months of this year, profits made by industrial enterprises above designated size stood at 2.28 trillion yuan, up by 9.8 percent year-on-year. Of this total, the profit from primary activities was 2,138.8 billion yuan, up by 9.1 percent. The costs for per-hundred-yuan turnover of primary activities of the industrial enterprises above designated size reached 85.9 yuan and the profit rate of the primary activities was 5.47 percent.

3. Investment in fixed assets slowed down at a high level.

In the first six months, investment in fixed assets (excluding rural households) was 21.28 trillion yuan, a growth of 17.3 percent (a real growth of 16.3 percent after deducting price factors), 0.3 percentage points slower than the first quarter. Specifically, investment in the state-owned and state holding enterprises reached 6.57 trillion yuan, a rise of 14.8 percent; private investment reached 13.86 trillion yuan, up by 20.1 percent, accounting for 65.1 percent of the total investment. In terms of different areas, the growth in eastern, central and western regions was 16.3 percent, 19.2 percent and 18.6 percent respectively. The investment in the primary industry was 482.0 billion yuan, up by 24.1 percent; the secondary industry 8,918.6 billion yuan, up by 14.3 percent; and the tertiary industry 11,876.4 billion yuan, an increase of 19.5 percent. The funds in place for investment in the first half year were 24.61 trillion yuan, up by 13.2 percent. Specifically, the state budget went up by 15.5 percent, domestic loans up by 12.9 percent, self-raised funds up by 16.7 percent, foreign investment down by 8.3 percent. The total investment in newly-started projects in the first six months of this year was 19.68 trillion yuan, an increase of 13.6 percent. In June, investment in fixed assets (excluding rural households) grew by 1.45 percent month-on-month.

The total investment in real estate development in the first six months was 4.2 trillion yuan, a nominal annual growth of 14.1 percent (a real growth of 13.1 percent after deducting price factors), 2.7 percentage points slower than the first quarter. In particular, the investment in residential buildings went up by 13.7 percent. The floor space started in the first six months was 801.26 million square meters, down by 16.4 percent. Specifically, the floor space of residential buildings went down by 19.8 percent. The floor space of commercial buildings sold was 483.65 million square meters, down by 6.0 percent. Specifically, the floor space of residential buildings sold was down by 7.8 percent. The total sales of commercial buildings were 3,113.3 billion yuan, down by 6.7 percent. Specifically, the sales of residential buildings were down by 9.2 percent. The land space purchased for real estate development was 148.07 million square meters, down by 5.8 percent. By the end of June, the floor space of commercial buildings for sale was 544.28 million square meters, up by 24.5 percent. The funds in place for real estate development enterprises in the first half of the year reached 5,891.3 billion yuan, up by 3.0 percent.

4. Sales in domestic markets experienced steady growth

In the first half of the year, the total retail sales of consumer goods reached 12.42 trillion yuan, a nominal annual rise of 12.1 percent (a real growth of 10.8 percent after deducting price factors), 0.1 percentage points faster than that in the first quarter. Specifically, the retail sales of the enterprises (units) above designated size stood at 6.21 trillion yuan, up by 9.8 percent. Analyzed by different areas, the retail sales in urban areas reached 10.73 trillion yuan, up by 12.0 percent, and the retail sales in rural areas stood at 1,694.6 billion yuan, up by 13.2 percent. Grouped by consumption patterns, the income of catering industry was 1.3 trillion yuan, up by 10.1 percent; and the retail sales of goods were 11.12 trillion yuan, up by 12.4 percent. In particular, the retail sales of the enterprises (units) above designated size reached 5.83 trillion yuan, an annual growth of 10.2 percent. In June, the total retail sales of consumer goods rose by 12.4 percent year-on-year (a real growth of 10.7 percent after deducting price factors), or 0.96 percent growth month-on-month.

In the first half of the year, online retail sales reached 1,137.5 billion yuan, a year-on-year growth of 48.3 percent and the online retail sales of the enterprises (units) above designated size stood at 181.9 billion yuan, up by 56.3 percent.

5. Imports and exports reversed to positive growth.

The total value of imports and exports in the first half of the year was 12.4 trillion yuan or 2.02 trillion US dollars, an increase of 1.2 percent (that in the first quarter was down by 1.0 percent year-on-year). The total value of exports was 6,511.3 billion yuan, or 1.06 trillion US dollars, up by 0.9 percent; the total value of imports was 5.88 trillion yuan, or 959.0 billion US dollars, an increase of 1.5 percent. The trade balance was 630.6 billion yuan or 102.9 billion US dollars. In June, the total value of imports and exports was 2.1 trillion yuan or 342.0 billion US dollars, up by 6.4 percent. The total value of exports was 1.15 trillion yuan or 186.8 billion US dollars, up by 7.2 percent; and that of imports was 957.3 billion yuan or 155.2 billion US dollars, up by 5.5 percent.

6. The growth of consumer price remained stable.

In the first six months of the year, consumer prices increased by 2.3 percent year-on-year, maintaining the same level as the first quarter. Specifically, prices increased by 2.3 percent in urban areas and 2.0 percent in rural areas. Grouped by commodity categories, food prices rose by 3.4 percent; tobacco, liquor and articles decreased by 0.6 percent; clothing increased by 2.3 percent; household facilities, articles and maintenance services increased by 1.3 percent; health care and personal articles grew by 1.2 percent; transportation and communication increased by 0.1 percent; recreation, education, culture articles and services grew by 2.3 percent and housing went up by 2.5 percent. In terms of food prices, grain grew by 2.9 percent, oil or fat down by 5.3 percent, pork down by 5.1 percent, fresh vegetables up by 1.0 percent. In June, the consumer prices went up by 2.3 percent year-on-year, or 0.1 percent down month-on-month. In the first half of the year, producer prices for industrial products fell by 1.8 percent year on year, while prices in June dropped by 1.1 percent year-on-year and 0.2 percent month-on-month. The purchasing price for industrial producers was down by 2.0 percent year-on-year. In June, prices were down by 1.5 percent year-on-year and 0.1 percent month-on-month.

7. Incomes continued to increase

In the first half of the year, the per capita cash income of rural residents was 5,396 yuan, up by 12.0 percent nominally, or 9.8 percent in real terms. The per capita disposable income of urban households was 14,959 yuan, a nominal growth of 9.6 percent, or a real growth of 7.1 percent after deducting price factors. Based on the integrated household survey, in the first half of 2014, the national per capita disposable income was 10,025 yuan, a nominal growth of 10.8 percent or a real increase of 8.3 percent. The median of the national disposal income was 8,780 yuan, a nominal increase of 13.7 percent. By the end of June, the number of rural migrant workers was 174.18 million, which was 3.07 million more than the same period last year, or up by 1.8 percent. The monthly income of migrant workers was 2,733 yuan, up by 10.3 percent.

8. Stable progress achieved in structural adjustment

Optimization of the industrial structure continued. In the first half of the year, the value of the tertiary industry accounted for 46.6 percent of GDP, 1.3 percentage points higher than the same period last year, and 0.6 percentage points higher than that of the secondary industry. The structure of domestic demand was further improved. In the first half of the year, the final consumption expenditure accounted for 52.4 percent of GDP, 0.2 percentage points higher than the same period last year. The income gap between urban and rural households was further narrowed. In the first half of the year, the real growth of the per capita cash income of rural households was 2.7 percentage points faster than the per capita disposable income of urban households. The per capita income of urban households was 2.77 times of the rural households, 0.06 less than that of the same period last year. Energy conservation and consumption reduction continued to make progress. In the first half of the year, energy consumption per 10,000 yuan of GDP decreased by 4.2 percent.

9. Money supply continued to grow steadily

By the end of June, the balance of broad money (M2) was 120.96 trillion yuan, a year-on-year growth of 14.7 percent; the balance of narrow money (M1) was 34.15 trillion yuan, up by 8.9 percent; and the balance of cash in circulation (M0) was 5.70 trillion yuan, a rise of 5.3 percent. At the end of June, the amount in outstanding loans was 77.63 trillion yuan, while the amount of outstanding deposits was 113.61 trillion yuan. In the first half of the year, the newly increased loans reached 5.74 trillion yuan, an increase of 659.0 billion yuan; the newly increased deposits were 9.23 trillion yuan, or 135.4 billion yuan more than last year. The social financing reached 10.57 trillion yuan, an increase of 414.6 billion yuan.

Generally speaking, China's economy showed a good momentum of stable and moderate growth in the first half of the year. However, we should keep in mind that the domestic and international economic environment is still complicated and the national economy still faces many challenges. In the next stage, we should raise our spirits, focus on implementation and abide by the decisions of the Central Party Committee and the State Council. We should make unwavering efforts to deepen reform, promote innovation, adjust economic structure and transform development patterns. We should also strive to consolidate the momentum of steadily progressing economic development and endeavor to promote a sustainable and sound development of the national economy.

 Don't miss:

  •  China's economy showed moderate but stable growth



Judging from the 7.5 percent GDP growth in the second quarter of this year, we can see economic growth has increased slightly. Do you think that means the Chinese economy has begun to recover from the bottom level? How do you see the current situation in the national economy and the future economic trends? Thank you.

Sheng Laiyun:

Thanks for your question. I would like to summarize the H1 national economy in three sentences. First, the economy in the first half year has been stable; second, the restructuring of the economy remains normal and is developing; third, structural adjustment and upgrading are making positive progress. The economy has been stable in five aspects: growth, employment, prices, agriculture and incomes.

During the first half year, GDP grew by 7.4 percent. In the second quarter, the GDP growth rate reached 7.5 percent, 0.1 percent higher than the first quarter. Urban employment increased by over 7 million, and the employment for migrant workers increased by 3.07 million, up 1.8 percent year-on-year.

The Consumer Price Index (CPI) grew by 2.3 percent in the first half of the year. From January to June, CPI was comparatively stable, between 1.8 percent and 2.5 percent. Agricultural production was in a good shape. Summer grain crops were harvested and increased 3.6 percent. Incomes for both urban and rural residents have increased rapidly. All these indexes illustrate that the economy is currently stable overall, and within a reasonable range.

The restructuring of the economy is stable and developing; this can be reflected in the following five aspects. First is the industrial structure. The added value of the tertiary industry made up 46.6 percent of China's gross domestic product, up 0.6 percent points year-on-year. Domestic demand continuously became the active force for economic growth. In the first half of the year, the contribution of domestic demand to GDP reached 102.9 percent. Second is the regional structure. The development between east, middle and west regions became more coordinated and harmonious. Third, the income gap between urban and rural residents was narrowed. Fourth, the overall growth rate of incomes was 2 percent points higher than the growth rate of fiscal revenue and 1 percent points higher than the growth rate of enterprise profit, respectively. That means residents incomes took up a higher proportion of the national income. Fifth is energy conservation and emissions reduction. In the first half of the year, the decline rate of energy consumption per unit GDP increased by 0.8 percent points year-on-year.

Structural adjustment and upgrading have made positive progress. As the economy remains stable, the economic structure experienced a range of profound changes. New industries, commercial activities and products have emerged and developed in a positive way.

In terms of industry, high technology and equipment manufacturing industries developed well and grew rapidly compared with traditional industries. As for consumption, online shopping and electronic commerce boomed. Through investigation and survey, we found that all enterprises which have a capacity for innovation and courage grew rapidly. And all products with proprietary intellectual property rights developed well. Based on this, we can see that the Chinese economy is gathering new momentum during its structural upgrading, which is now at a stalemate with traditional industrial power. A great break through is expected during the progress of structural adjustment and the upgrading of the Chinese economy.

In general, the national economy has grown steadily and is progressing. But we could not be short-sighted and over optimistic, because the current situation is still complex. The adjustment of traditional industries will require some time, therefore, the overall economy has to face a downward pressure. In this case, we should stand up and fight against the pressure, promote reform and innovation, adjust and upgrade the structures in order to keep the overall economy stable and developing well. Thank you!

Phoenix TV:

Regarding the real estate sector, several indicators for the first half of the year have seen year-on-year slowdown in growth rate. Will the changes of the second half of the year bring more downward pressure on the economy? Thanks!

Sheng Laiyun:

Thank you for your question. Just as you have said, in the first half of this year, the real estate market has begun to witness differentiated adjustment. During the January –June period, the area of property sales went down by six percent and the sales volume went down 6.7 percent. The housing prices of different regions also vary. In the second and third tier cities, the housing prices went downward as they adjust themselves. I think there are two reasons for such situation: first, the year-on-year base for last year is relatively high. From January to June 2014, the area of property sales was 480 million square meters, but during the same period last year, the area was 510 million square meters. The growth rate for last year was nearly at 30 percent. So due to the high base, the current decline is normal. Second, it is the internal adjustment that the market needs, and the decline in the first half of the year was the normal reaction indicating that the market turned reasonable.

The real estate market's differentiated adjustment will indeed put pressure on the economy in the short term, but we believe in such regulation and control for the real estate market. From the long-term perspective, it is not only good for the real estate market's own healthy operation, but also good for the sound development of national economy. Thank you!

China National Radio:

We have noticed from the report and Mr. Sheng's remark that the service sector in the tertiary industry outperformed the secondary industry once again, both in terms of growth and proportion in the entire economy. We'd like to ask whether this momentum is expected to continue?

Also, some analysts have deemed that the service sector will soon account for more than half of China's GDP. What is your opinion about it?

Housing price is likely to confront with some downward pressure in the near future, as it seems that the property price in the first-and-second-tier cities is beginning to decline, which is different from the polarized price trend seen in Q1 of this year. How would you anticipate the trend? Thank you.

Sheng Laiyun:

Thank you. I advise you to be patient and wait two more days, as on July 18, we will release the housing price data for 70 big and middle cities.

Your second question is quite good, and I will focus on it. The service sector is growing at an accelerated speed in the past few years; its growth rate and proportion in the country's GDP have both surpassed those of the manufacturing sector. I regard it a major improvement brought by structural adjustment and a cheerful sign in the country's stabilizing economy. Last year, China's tertiary industry accounted for 46.1 percent of the country's GDP, surpassing that of the secondary industry for the first time. In the first half of this year, the tertiary industry contributed 46.6 percent to GDP, continuing with the momentum of faster growth rate and higher portion than that of the manufacturing sector in the country's overall economy. It signals that the Chinese economy is experiencing a shift from being led by manufacturing to one driven by service, which will have profound and lasting impact on China's economic growth and employment among others.

After comparing with practices in other countries, we have noticed a service-driven economy takes on the following features. First, it will slow down the growth rate of economy because the service sector has a shorter industrial chain than manufacturing, and it involves less investment, has lower productivity than manufacturing in the short term. Hence, the increment from the service sector in short term cannot yet offset the impact brought by the downward pressure facing manufacturing sector, and this may cause the overall economy growth to slow down. Second, it facilitates improving the stability of growth. Service is mainly to meet the domestic demand and is less affected by the fluctuation of exchange rates. Also, as service mostly meets the demand in consumption, which supports the economy, a service-led economy which has low fluctuation. Third, the service sector is a labor intensive one, meaning that it is good at facilitating employment. Fourth, it helps increase income and rationalizes income distribution in society. And finally, boosting consumption facilitates rationalizing the relation between investment and consumption. The service sector mainly intends to meet the demand of consumption, so that a stronger service sector will be conductive to people's propensity to consume.

Looking back at the past two years, we have noticed that slowdown and stability highlighted the Chinese economy. But while stability is seen in investment and consumption, job market has remained stable and turned for the better. We attribute these features to the accelerated development in China's service sector and the fundamental structural adjustment.

We think the tendency is worth attention and we should make the most of the tendency to accelerate the development of production-related service and life-related service, which in turn will propel the transformation of the Chinese economy. Thank you.

Beijing TV Station:

My question concerns the micro stimulus policies that the State Council adopted to ensure the smooth running of the national economy after the economic index data issued in the first quarter of the year. What impacts did those micro stimulus policies have and what new measures did the government take in the first half of the year?

Sheng Laiyun:

Confronting the complicated internal and external conditions as well as pressure from a downward economy, the Central Party Committee and the State Council adopted preliminary adjustment and micro adjustment based on the continuity and stability of policies. Meanwhile, on the basis of the interval adjustment and control, the government has put more emphasis on direct adjustment and control, carrying out a series of policies to sustain economic growth, deepen reform, adjust the economic structure and improve the people's livelihood. Those policies, which are interconnected, can both promote reform and sustain growth, and to some extent respond to the structural adjustment. The policies, which incorporate structural adjustment, promoting reform and stabilizing economic growth, are good both for the present and future.

Based on this, the impacts of the policies have been positive. They have been working especially well since the second quarter of the year. Take the June data for instance. Some indexes changed positively. Besides, the economy in the second quarter has operated better than in the first quarter. Take the indexes in June for example. The market expectation has continued to improve, as the PMI (Purchase Management Index), which continued to rebound for four consecutive months, reached 51 percent in June. Fixed assets investment growth stopped declining and grew by 17.3 percent from January to June, registering a growth of 0.1 percentage points compared with growth from January to May. Secondary industry also experienced a rebound. The added value of industrial output above the designated size grew by 9.2 percent year on year in June, 0.4 percent higher than May. The other indexes, including electric power output and freight volume, all took increased in the second quarter. Therefore, in my opinion, the series of policies adopted by the central government to sustain growth and promote reform are both timely and effective. To me, the most important issue in the next phase is how to implement them. Thank you.

Beijing Times:

I have two questions: One, could you help us analyze the proportions of investment, consumption and exports in GDP? Two, you felt the innovative industries have performed well, but could you talk more about the old industrial bases? Such as those places which rely on coal and steel, have you analyzed the economic situations there? Is China's economy growing to be more and more unbalanced? Thanks!

Sheng Laiyun:

As for the question about the proportions of the three types of demand in GDP growth, in the first half of the year, consumption eventually contributed 54.4 percent to GDP growth and helped GDP increase by four percent; fixed capital contributed 48.5 percent and helped GDP increase 3.6 percent. The contribution of the net exports of the cargo and service industry was minus 2.9 percent and caused a 0.2 percent decrease in GDP.

As for the adjustment and transformation of the old industrial bases, in the first half of the year, the trend was that part of the old industrial bases, especially the traditional chemical industry or raw material industries faced huge challenges. In some provinces, economic growth declined. The decline was partly due to the serious excess production capacity in traditional industries. These industries faced relatively bigger challenges during market adjustment. These places faced greater pain from the adjustment and transformation of economic growth.

Another thing I want to emphasize is that the growth decline in old industrial bases in several provinces was also related to the actions of the local provincial governments, which actively adjusted the industrial structures and adopted new models according to the central government's requirements. Looking at it this way, the old industrial bases were facing short-term decline due to the transformation and our active adjustment and actions in terms of market demand. So we believe that as long as we handle well the relationship between stable growth, restructuring and promoting reform, the old industrial bases will be revived and their economic growth will increase at a medium or fast rate. Since these places are mostly regions that have not completed industrialization and urbanization, they have obvious potential for the future. They have the potential and conditions to continue mid-or-high-speed growth. The key is how they can overcome the pressure from economic restructuring and transformation of the economic development mode. Thanks!

Wall Street Journal:

Latest statistics show that China records a high debt rate. How dangerous is debt to China's economy? What kinds of measures will China take to tackle the debt?

Sheng Laiyun:

Thank you! The Chinese government has a high regard to the debt issue. Some relevant government agencies have been demanded to clear out the debts of local governments. According to the data released, we believe that the nation's current debt is still under control, and is still below the internationally recognized warning line. To curb the mounting debts of local governments, the Chinese government has issued several circulars demanding a stronger management and clearance of local debt. We think these measures are taking affect, and believe that China's debt level will continue to be kept below the warning line.

China Securities Journal:

I have two questions for Mr. Sheng. First of all, you just mentioned the development of certain industries, including those with high technology and proprietary intellectual property rights. How does the advancement of technology contribute to the development of our economy? Do you have specific numbers and examples to elaborate it? Secondly, during the introduction of micro stimulation policies to the economy, we noticed that the speed of fiscal expenditure was largely increasing, especially in May and June. How did fiscal expenditure promote the economic growth in the first half of the year? What are the main areas of fiscal expenditure in the next half and what's the proportion? Thank you.

Sheng Laiyun:

It needs to use methodology and basic data to measure the contribution of technology to the economic growth. We are working on the calculation currently and will devote greater efforts to improve the statistic method to include indexes that show the effect of technology innovation and advancement to the economy. In the first half of the year, the added value of high-tech industry has a 12.4 percent growth rate, 3.6 percentage points higher than the average level of industries above designated size. The full-covered online retail sales also increased by 48.3 percent, and the development of the new industries has showed the contribution of technological innovation. It is certain that the advancement of technology has increasingly supported the adjustment and transition of structure.

This year, the CPC central committee and the state council have adhered to the positive fiscal policies, which have a clear framework. The fiscal policies also play a greatly important role in stabilizing growth, improving reform and adjusting structure. Regarding the changes of fiscal expenditure, I suggest you to check with related departments and you will get more accurate information. Thank you.

Shen Zhen Television:

As for China's economy in the second half of 2014, we have noticed that statistics predict continuous negative growth for the property market like the first half of the year on the one hand. As you have mentioned on the other hand, the poor performances in the fields like overseas market demands slow down the overall GDP growth. Could you tell us from which fields the pressure for the economic growth in the second half of the year comes? Could you also predict if the year's 7.5 percent GDP growth goal can be reached as far as the current overall performance is concerned?

Sheng Laiyun:

With regard to the conditions to face in the second half of 2014, the situation is still complicated, mixing with impetus that boosts sustained and steady economic recovery and pressures that restrain rapid economic growth. As China's economy undergoes transformation, upgrading and restructuring and their overlapping influence will continue. The pains brought about by restructuring, are still torturing the traditional industries and fields, including the property market, to a great extent. Such pains will affect the economic growth in the short term, but the fundamentals for the country's economic growth remains unchanged on the whole, and the impetus is far more than the pressures. China is capable and flexible to ensure a fast, yet continuous steady economic growth with great potential and possibilities.

With regards to favorable conditions, China's industrialization and urbanization are unfinished and the new industrialization, agricultural modernization and urbanization are still the fundamental impetus for the country's long-run economic growth. China exerts more efforts in reform after the 3rd Plenary Session of the 18th CPC Central Committee. The Government has made a series of policies and measures on reform this year. Reform, opening up and innovation will continue to inject impetus and vitality to economic growth. Meanwhile, the effect of these policies and measures is emerging, even in the more challenging export and property markets. Export growth sees modest recovery in the latest months, and the decline in the property market is narrowing. From the above conditions, it is possible to keep a fast and steady economic growth in the second half of the year. In a word, we must cheer up and implement the policies and measures with full confidence and stable expectations in economic growth. If we do, it is of full possibility to maintain fast yet steady economic growth. Thank you.

China Mining News:

We know that as part of the traditional mining industry, some coal, iron ore and non-ferrous metal companies have witnessed some losses in the first half of this year. But from the data you just provided, the production value and the fixed asset investment in the mining industry still maintain a growth rate of more than four percent. Does this fall in the reasonable range? And based on what you know, will you please predict the development trend of the mining industry in the latter half of this year or even in a longer period of time? Thank you.

Sheng Laiyun:

Thank you. It is very attentive of you to have observed the minute changes in the data. The mining industry, and even the smelting of the entire non-ferrous metal, have been confronted with serious challenges in recent two years; the prices are falling considerably, the production capacity is still releasing, and there is a great gap between market demand and supply. Both the industrial adjustment and transition are faced with great pressure. Pressed by the market, many companies in these industries proactively adjusted their structures and transformed their development mode to bring about products that meet market demand, thus the entire industry has maintained growth. But the growth rate has dropped drastically compared to the average growth rate in the past several dozen years.

The production capacity does require our attention. The output keeps growing, and the growth rate in some areas is larger than the demand, which increases the pressure in storage. It also shows that the prospect of making adjustment in these industries is still daunting. But we believe that as long as these traditional industries seize the opportunities of the current economy steadily growing, make more efforts in adjusting structures and transforming development mode, adapt to the market mechanism and make adjustments proactively, they will overcome the current problems and revitalize themselves. Thank you.

Hu Kaihong:

Here ends the press conference. Thank you, Director-general Sheng. Thank you all.

Follow on Twitter and Facebook to join the conversation.
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:    
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from