CCTV:

The statistics you just released show China's economic performance in the first quarter was stable. How do you understand the situation? You just mentioned that China had made a good start. Can you explain? 

Xing Zhihong:

Thank you for the question. In the first quarter, national economic performance remained stable while making further progress with new growth momentum emerging. We have made a good start, as the transformation and upgrading of industries went further, and the quality and effect of development continued to improve. Generally speaking, national economic performance in the first quarter was stable and sound, with new growth drivers emerging and economic structure improving. 

First, the national economy ran steadily. Major macro-regulation indexes show that in the first quarter, China's economic performance remained stable. A steady rise was seen in the economy, more jobs were created, commodity prices remained basically unchanged, and a general balance was kept in international payments. 

Regarding overall economic development, in the first quarter, the national economy grew 6.8 percent, at the same rate of the fourth quarter of last year. The rate has remained between 6.7 percent and 6.9 percent for 11 consecutive quarters.

Regarding the job market, the urban unemployment rate was around 5 percent in the first three months. In particular, the unemployment rate in 31 big cities remained below 5 percent. The total number of rural workers working outside their hometowns increased 1.88 million, up by 1.1 percent year-over-year. The sound employment situation is a major indicator of stable economic performance.

Regarding commodity prices, in the first quarter, the CPI increased slightly by 2.1 percent year-on-year. Commodities were in sufficient supply, basically able to meet the market demand. Moreover, the PPI growth rate slowed down. In the first quarter, the PPI increased 3.7 percent, with the growth rate down by 3.7 percentage points year-on-year.

Regarding international payments, so far this year, China's imports and exports continued to grow rapidly. In particular, the growth rate of imports continued to outpace exports, leading to a smaller trade surplus. Imports and exports were more balanced, and foreign exchange reserves were basically unchanged.

Second, the economy is driven by new growth drivers. It is mainly reflected by innovation-driven development. Mass entrepreneurship and innovation are booming and have stimulated market vitality and social creativity. New growth drivers continue to increase. Since the beginning of this year, new market players have increased substantially. Statistics by relevant authorities show that China's newly registered enterprises in the first quarter reached 1.32 million, with a daily increase of 14,700 on average. This substantial increment illustrates that mass entrepreneurship and innovation encourage passion for business. New industries, businesses and models are thriving. In the first quarter, the added value of the strategic emerging industries grew by 9.6 percent, registering an increase higher than the average growth rate of the industrial enterprises above designated size. Meanwhile, online retail sales rose 35.4 percent, and the volume of express delivery went up more than 30 percent. Their growth rate continues to accelerate. Now, the "Internet Plus" has reached different industries and sectors and bred many new forms of industries and business models. The digital economy, platform economy and sharing economy continue to grow rapidly, injecting new vitality into China's economic development.

Third, the economic structure has been optimized and coordinated development enhanced. In terms of industrial structure, the service industry continuously played a leading role as it accounted for 56.6 percent of the economy in the first quarter, 0.3 percentage points higher year-on-year. It contributed 61.6 percent to economic growth, 25.5 percentage points higher than that of the secondary industry. The industry continues to move toward mid and high-end manufacturing as the proportions of high-tech manufacturing and equipment manufacturing were improved to 12.7 percent and 32.2 percent respectively among industrial enterprises above designated size. 

In terms of demand structure, the fundamental role of consumption has been enhanced. The final consumption expenditure contributed 77.8 percent to economic growth, 46.5 percentage points higher than that of the gross capital formation. Consumption of goods has been shifted to quality consumption; material consumption shifted to service consumption. This is the new change in terms of consumption.

In terms of investment, the investment also addressed inadequacies, shored up points of weakness and gathered momentum, thus achieving an optimized structure. This year, the investment in agricultural and social sectors both grew by over 20 percent. As for industrial investment, investments in high-tech industries have increased continuously.

The foreign trade structure has also been optimized. In terms of trade modes, the proportion of general trade was improving. In terms of trade subjects, the proportion of exports of private enterprises increased continuously. In terms of region, the imports and exports in central and western China grew remarkably faster than that of the nation as a whole. 

Four, the economic performance is good. The efficiency of enterprises were improved, household income increased, and green development was boosted. Enterprise profits enjoyed rapid growth. From January to February, profits of industrial enterprises above designated size increased by 16.1 percent year-on-year, and profits of service companies above designated size rose by 4.5 percent. It is not easy for enterprises to maintain such a growth rate considering the high profits last year, which indicates their efficiency has been improved. People's income grew 6.6 percent in real terms, still faster than the growth of GDP per capita, which indicates that the growth of household income almost synchronized with the economic growth. Green development was advanced steadily. Energy consumption per 10,000 yuan of GDP fell by 3.2 percent, the share of clean energy consumption increased, and utilization efficiency of energy and resources was improved. Continued improvement in the environment, especially air quality, was achieved.

The conclusion is that stable performance and improvement in quality and efficiency have complemented and promoted each other. Stability, harmony, inclusiveness and sustainability of the economy have been strengthened, which will lay a solid foundation for the sustainable and healthy economic growth of this year. Thank you. 

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