Another "reassurance"! In 2019, the Ministry of Industry and Information Technology rolled out six major measures to promote high-quality development of the manufacturing industry!

Following the unveiling of three key departments on January 15, the State Council Information Office held a second press conference on January 16 to elaborate on the implementation of the Central Economic Work Conference. Vice Minister Xin Guobin of the Ministry of Industry and Information Technology, Vice Minister Qiu Xiaoping of the Ministry of Human Resources and Social Security, and Assistant Minister Ren Hongbin of the Ministry of Commerce introduced the specific measures taken by their respective departments to implement the spirit of the Central Economic Work Conference. (Forward)


At the meeting, the heads of the three major ministries introduced the policies and measures for stabilizing industrial growth, employment, and foreign trade this year, and responded to questions of market concern.

Quickly browse the key points of the press conference:

1. Discussing the slowdown in industrial growth    

 

The overall operation of the industrial economy remains within a reasonable range, better than expected. The fundamentals of industrial development are good, structural problems affecting the sustained and healthy development of industry are being gradually resolved, and some new driving forces are steadily forming. There is a guarantee to complete the annual target tasks.

 

2. Discussing the decline in automobile production and sales    

 

Maintaining optimism about the automobile production and sales situation in 2019. After the automobile ownership reaches a certain scale, sustained high growth is unrealistic, but there will not be significant fluctuations. Demand in third- and fourth-tier cities will continue to be released, and with the implementation of new environmental protection standards, the elimination of some old models will also accelerate.

 

3. Discussing stable employment    

 

The employment situation remains generally stable, the pressure on the total amount of employment remains, and the structural contradictions of employment are becoming more prominent. The number of new growth laborers who need to be employed in urban areas this year remains above 15 million, especially the number of college graduates reaching 8.34 million, a new high.

 

4. Discussing pension security    

 

Deeply implement the national participation plan and expand the coverage of the system. We will promote national coordination on the basis of accelerating provincial coordination and reasonably balance the burden of pension insurance funds between different regions. In 2018, the cumulative surplus of the basic endowment insurance fund for employees was nearly 5 trillion yuan, and we will promote the marketization, diversification, and professionalization of fund investment to achieve value preservation and appreciation.

 

5. Discussing the construction of free trade zones    

 

Propose a policy and institutional system for free trade ports with Chinese characteristics as soon as possible. Further reduce the special management measures for foreign investment access in free trade pilot zones. Accelerate the opening-up process in key areas such as medical care and education.

 

6. Discussing the progress of Sino-US trade consultations    

 

China once again emphasized that Sino-US economic and trade cooperation is mutually beneficial and win-win, and Sino-US economic and trade relations are not only important to China and the United States, but also very important to the global economic and trade development. China and the United States will benefit from cooperation and suffer from conflict. Both sides have a positive desire to implement the important consensus reached by the leaders of the two countries and promote relevant consultations.

 

 

Highlight 1: Has the industrial growth rate slipped out of the reasonable range? Will the manufacturing industry be significantly impacted this year? Response from the Ministry of Industry and Information Technology

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The Central Economic Work Conference puts promoting high-quality development of the manufacturing industry in the first place of key tasks. Since September last year, the industrial growth rate has fallen below 6%. The continuous slowdown and fluctuation of industrial growth rate have increased the anxiety of the business community.

Xin Guobin responded to public concerns, saying that it can be viewed from three dimensions. First, the overall operation of the industrial economy remains within a reasonable range, and the actual operating results are better than we imagined, and there is a guarantee to complete the annual target tasks. Second, the perspective of judging economic operation should also look at whether the fundamentals are normal. In the long run, the fundamentals of China's industrial development are good, and structural problems affecting the sustained and healthy development of industry are being gradually resolved. Third, the national economy is in a period of transition between old and new driving forces, but some new driving forces are steadily forming.

 

What specific measures will the Ministry of Industry and Information Technology take in 2019 to promote high-quality development of the manufacturing industry? According to the introduction, the Ministry of Industry and Information Technology has defined six key areas of work:

First, we will, together with relevant departments, formulate an indicator system and evaluation system for the high-quality development of the manufacturing industry from multiple dimensions such as innovation, coordination, green development, opening up, and sharing.

Second, focusing on optimizing structure, accelerating upgrading, and strengthening financial cooperation, we will focus on promoting the optimization and upgrading of traditional industries.

This includes: continuing to support key provinces in reducing steel production capacity, continuously optimizing the layout of the steel industry. Strictly prohibiting new projects in steel, cement, and flat glass from expanding production capacity, strictly controlling the increase in electrolytic aluminum production capacity; increasing investment in technological transformation and equipment upgrading in the manufacturing industry; strengthening cooperation with commercial banks and other financial institutions, giving play to the role of multi-level capital markets, improving public technical service platforms such as inspection and testing, experimental verification, and pilot-scale testing, and supporting enterprises in achieving technological upgrades.

Third, accelerate the establishment of a collaborative innovation system led by enterprises.

This includes: continuing to plan and build a number of high-level manufacturing innovation centers, continuing to implement major scientific and technological projects in the manufacturing industry, and accelerating the innovation breakthroughs in areas such as large aircraft, aero-engines, and heavy-duty gas turbines. At the same time, we must also promote the implementation of the measure to increase the deduction ratio of R&D expenses to 75% and expand it to all enterprises. Promote the implementation of support policies and incentive policies for the first (set) of products.

Fourth, focus on improving the professional capabilities and levels of enterprises, promote the implementation of preferential tax reduction policies for small and micro enterprises and technology-based start-ups, and actively promote innovation in financial products and services. Cultivate a group of "specialized, refined, and new" small giant enterprises and "single-item champion" enterprises focusing on specific fields, and deepen the bilateral and multilateral cooperation mechanisms for small and medium-sized enterprises.

Fifth, study further reducing the value-added tax rate for the manufacturing industry and continuously reducing the cost of electricity and water for the manufacturing industry. Carry out a special campaign to thoroughly clean up arrears owed to private enterprises.

Sixth, expand high-level opening-up and cooperation. Fully implement the pre-entry national treatment plus negative list management system, and steadily promote the opening-up of industries such as automobiles, ships, and aircraft according to the established timetable. Focusing on the "Belt and Road" initiative, we will practically promote equipment manufacturing and international production capacity cooperation.

 

 

Highlight 2: "Stable employment" highlights a main line, delivering a "combination punch" from four aspects
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The Central Economic Work Conference puts stable employment in the first place of the "six stabilities." Employment is the greatest livelihood.

It is expected that a series of high-quality stable employment policies will be introduced this year, such as increasing the intensity and amount of returning the actual unemployment insurance premiums paid by enterprises that lay off or lay off fewer employees, which can return up to 50%. At the same time, increase the amount of entrepreneurial guarantee loans, increasing the maximum amount for individual applications from 100,000 yuan to 150,000 yuan, and the maximum amount for small and micro enterprises from 2 million yuan to 3 million yuan, etc.

In addition, for key groups such as college graduates, migrant workers, and demobilized soldiers, the Ministry of Human Resources and Social Security implements a series of targeted projects and plans, and strengthens real-name management and services.

Especially in response to the situation of migrant workers returning home early mentioned in previous media reports.

Qiu Xiaoping responded that according to recent typical surveys and fixed-point monitoring conducted by the Ministry of Human Resources and Social Security, some migrant workers have indeed returned home. The analysis conducted by the Ministry of Human Resources and Social Security shows that the early return home is caused by various reasons. Some are due to family reasons; some are due to increased job opportunities at their doorstep; in addition, the gold content of policies for migrant workers returning home to start businesses is getting higher and higher, so some are going back to prepare to start businesses at home. Of course, some are also affected by the production and operation of enterprises.

Highlight 3: Once again emphasizing that Sino-US economic and trade cooperation is mutually beneficial and win-win
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The progress of Sino-US trade consultations has attracted much attention. At the press conference, many media outlets raised questions about the progress of the Sino-US trade consultations and China's expectations.

Currently, the bilateral consultation teams from both China and the US are actively implementing the important consensus reached by the two heads of state in Argentina, and hope to continue to pay attention to the regular press conferences of the Ministry of Commerce.

He also reiterated that we believe that Sino-US economic and trade cooperation is mutually beneficial, and that Sino-US economic and trade relations are not only important to China and the US, but also very important to the global economic and trade development. China and the US benefit from cooperation and suffer from conflict. Both sides have a positive desire to implement the important consensus reached by the leaders of the two countries and to promote relevant consultations.

In addition to the information disclosed by the three ministries at the press conference, He Lifeng, director of the National Development and Reform Commission, published an article today, pointing out that China's population exceeds the total population of the world's developed economies. It is expected that the per capita GDP in 2018 will be close to US\$10,000. The total retail sales of consumer goods increased from 155.9 billion yuan in 1978 to over 38 trillion yuan in 2018, with an average annual growth rate of about 15%. The contribution rate of consumption to economic growth has remained above 50% since 2015. The trend of consumption upgrading driven by improved consumption capacity is becoming increasingly apparent.

The Ministry of Commerce also stated that it will focus on promoting the formation of a strong domestic market. Adhering to the principle of "grasping urban consumption and rural consumption simultaneously." In cities, accelerate the transformation and upgrading of pedestrian streets and carry out pilot projects for the construction of international consumption centers. In rural areas, promote "industrial products going to the countryside and agricultural products entering the city." Adhering to the principle of "grasping commodity consumption and service consumption simultaneously." Cultivate modern supply chains, promote the integrated development of online and offline businesses, and promote effective supply and demand linkages. Build a new batch of convenient consumer service centers in urban and rural areas to improve residents' living service levels. Continue to optimize the consumption environment. Using the improvement of the credit system and product traceability system as a lever to allow the people to eat with peace of mind, dress with satisfaction, and use with comfort. Do a good job in business to ensure people's livelihood.


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