Xi Yanchun:

Due to the time limit, please offer the last question.

Reuters:

You've just mentioned that China's average per capita disposable income grew 6.6 percent in real terms in the first quarter of 2018, lower than the growth rate of 7.3 percent in 2017. Do you think this trend will continue? What's the reason behind it? China's economy performed well in the first quarter. In your opinion, what is the top risk faced by China's economy in realizing steady, sound and high-speed development?

Xing Zhihong:

Let me talk about income first. The nominal growth rate of national resident income in the first quarter of 2018 was 8.8 percent, 0.3 percentage points higher year on year. The growth rates of nominal income for both urban and rural residents are higher than those of the same period in 2017. It shows that people's money bags are fuller this year. Why was there a slowdown in actual growth rate? It is mainly influenced by the factor of prices. In the first quarter of last year, the growth rate of commodity prices was relatively low. Actually, it is not that high this year. It is just 2.1 percent, indeed a mild increase. But compared with that of last year, it's higher and exerts some influence on actual growth of resident income. We can see that the Chinese economy is developing in a steady and sound way and more job opportunities are being created. Mass entrepreneurship and innovation are making progress and the income distribution system is improving. At the same time, our country has placed great emphasis on the growth of resident income and a series of policies have begun to take positive effect. All these will help increase resident income in step with economic growth. The actual growth rate of resident income in the first quarter was 6.6 percent, higher than that of per capita GDP. 

Specifically, the performances of enterprises have continued to improve and their operation is in good condition, which provides strong support for the growth of employees' wages. From the rural perspective, the structural reform of the agricultural supply side, the integrated development of the rural primary, secondary and tertiary industries, and the increase in the output and prices of some agricultural products in particular, have created favorable conditions for the growth of agriculture-related incomes. The land reform in rural areas is still ongoing. Farmers have gained property incomes and expanded their income sources through the transfer of the contractual right of land. Thus, the farmers' income grew faster than that of the urban residents. In the first quarter of this year, the increase of farmers' income continued to be higher than that of urban residents, and the income gap between urban and rural residents was further narrowed, which is a good change. Chinese governments at all levels have implemented the guideline of being people-centered and made more investments in people's livelihood. The social security standards have been continuously improved and the security coverage has been further expanded. Both urban and rural residents have gained more transfer incomes. Therefore, the income of citizens across the nation will continue to keep pace with the economic growth. Particularly, the goal to develop a well-off society with doubled incomes can be realized without any problem from the current point of view.

Currently, the biggest challenges facing China's economic development come down to the uncertainties of the international environment and the problems caused by unbalanced and inadequate domestic development. Rising protectionism, the adverse spillovers of major economies' changing monetary policies, and the fluctuation of the financial market may all have an impact on China's economy. 

For all the challenges, China's economy, with its strength, strong resilience, great potential and ample leeway, will continue to maintain stable performance with good momentum for growth.

Xi Yanchun:

Thank you, Mr. Xing.

Mr. Xing has no other things than a pen and a piece of paper in hand today, as he is thoroughly familiar with the statistics. And he has made a detailed and in-depth interpretation of those statistics for us.

We appreciate your continued attention on China's economic performance, and please contact the information office of the National Bureau of Statistics if you have other questions.

Thank you, Mr. Xing, and all our friends from the press. That's all for today's press conference.

By Li Xiaohua, Chen Xia, Mi Xingang, Yang Xi, Zhang Rui, Duan Yaying, Wang Yanfang, Zhang Jiaqi, Cui Can, Zhang Liying, Li Huiru, Zhou Jing, Xu Lin, Huang Shan, Yuan Fang, Wang Qian, Zhang Junmian, Layne Flower, Christopher Georgiou, Jennifer Fossenbell

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