Macao Daily News:
Recently, there have been more discussions about China's manufacturing industry, and some countries said they would spare no expense to subsidize costs, encouraging their enterprises to move manufacturing back to their countries and calling for the return of the industrial chain. At the same time, due to the shutdown of foreign factories, some enterprises lack production components. Are central SOEs prepared to respond to new situations in the industrial chain and supply chain? Thank you.
Thank you for your question. Mr. Xia will answer it.
Indeed, as the reporter just said, there are increasing discussions on the manufacturing industry happening in society, and there are also many voices being heard in the international community. We believe that the global economy is a whole entity. The industrial chains and supply chains of various countries are interlinked, and after more than 40 years of reform and opening-up, China's economy has been deeply integrated into the global industrial chain and supply chain. Due to the impact of COVID-19, all countries in the world are tightening their prevention and control measures, and the smooth and orderly operation of the global industrial chain and supply chain has been affected to varying degrees. Central SOEs have also encountered the delay of existing contracts, decrease of new orders and risks in the supply of some required raw materials and spare parts. As for the question of how to deal with the impact of the pandemic on the industrial chain and supply chain, our opinions are as follows:
On the one hand, we must continue to give full play to the role of the global industrial chain. At present, the overall pattern of the global industrial chain and supply chain is the result of years of joint efforts and common choice made by the enterprises of various countries. It is the result of the function of comprehensive factors, such as factor costs, industrial support and the infrastructures of various economies. It is not formed overnight, nor can it be changed by any individuals or countries at will. We believe that short-term subsidies cannot stop the long-term market trend. There is an old Chinese saying that "it is important to take a long-term perspective," and we will encourage central SOEs to continue strengthening cooperation in the global industrial chain. On the other hand, we must make full use of the advantages of the domestic industrial chain. Central SOEs have a relatively complete industrial system, and they have certain development resilience, potential and room to maneuver. Since the outbreak, central SOEs have spared no effort to ensure stable production and supplies, protect people's livelihoods and stabilize the market, and they have taken the lead in resuming work and production. Now, 99.4% of central SOEs have resumed work and production. In doing so, they have driven medium, small and micro-sized enterprises in the upstream and downstream of the industrial chain to reboot engines. We also took the lead in implementing the national policy requirements for tax and fee reductions, along with rent exemption or reduction. In the first quarter, costs of various market entities were reduced by 45 billion yuan. It should be said that through this concession, a healthy industrial chain ecology and a sound economic ecology have been created.