CCTV:

Since the beginning of this year, China's economy has withstood pressure and operated steadily despite facing a complex environment. How do you evaluate the overall economic performance in the first half of the year? What are the main factors behind this performance? Thank you.

Sheng Laiyun:

Thank you for your questions. Since the beginning of this year, the international environment has been complex and volatile. The international economic and trade order has suffered severe damage, and instability and uncertainty have increased. Facing such a complex situation, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, all regions and departments have earnestly implemented the decisions and deployments of the CPC Central Committee and the State Council. We have adhered to the overall coordination of domestic economic work and international economic and trade challenges. We have accelerated the implementation of more active and effective macroeconomic policies and focused on stabilizing employment, enterprises, markets and expectations. The national economy has withstood pressure and operated steadily. Major indicators performed better than expected, high-quality development has been solidly advanced, and the economy has steadily achieved progress and improvement. Here, I would like to use four key points to summarize the main characteristics of economic performance in the first half of the year:

First, economic stability continued. Stable performance was a defining characteristic of the first half of the year. Looking at the four major macroeconomic indicators, growth remained stable with a slight increase. In the first half of the year, GDP grew 5.3% year on year, with the first quarter at 5.4% and the second quarter at 5.2%. The first-half growth rate increased 0.3 percentage point compared to both the same period and the whole year of last year. Last year, GDP growth was 5% for both the first half and the full year, demonstrating stable growth with modest improvement. The surveyed unemployment rate remained generally stable. Since the beginning of this year, the monthly surveyed unemployment rate has fluctuated primarily within the 5%-5.4% range, remaining essentially stable. Prices remained low and generally stable. This year, the CPI declined 0.1% year on year for several months, but turned positive in June with growth of 0.1%. Core CPI rebounded to 0.7% in June. The balance of payments remained essentially balanced. Goods imports and exports reached a new high for the same period, and foreign exchange reserves remained above $3.2 trillion. Based on these four major macroeconomic indicators, we believe the fundamental trend of stable economic performance has not changed.

Second, the pace of progress remained steady. While maintaining stable economic performance, various regions across the country have steadfastly promoted economic transformation and high-quality development. From the data, we can see that new achievements have been made in innovative, coordinated, green, open and shared development.

Third, new momentum accumulated. Local authorities have been developing new quality productive forces tailored to local conditions while stepping up efforts to promote integrated advancements in technological and industrial innovation. As a result, new industries, technologies and business models continue to grow rapidly. In the first half of the year, high-tech industries' value added increased 9.5% year on year, while the added value of the country's new industries, new business formats and new business models accounted for about 18% of GDP in 2024, with new momentum building.

Fourth, the flow of economic activity got smoother. Since this year, in response to external challenges, China has placed greater emphasis on expanding and strengthening its domestic economic circulation, introducing a series of policies to boost domestic demand, support production, and improve the overall flow of economic activity. The statistics show improving flows of people, goods and capital, with domestic demand driving 68.8% of GDP growth in the first half of the year. Consumer spending alone contributed 52%, making it the key growth engine. China's economy is improving, with freight turnover increasing 5.1% year on year in the first half of the year and passenger turnover rising 4.9%. The central bank just released data showing that M2 grew 8.3% year on year at the end of June.

Based on these four aspects, we can conclude that the economy performed steadily overall in the first half of the year, demonstrating progress and improvement. This is a very strong and valuable achievement. It's particularly remarkable given the dramatic changes in the international situation and significantly increased external pressure since the second quarter. Of course, we are also keenly aware that the external environment remains complex and fluid, internal structural problems have not been fundamentally resolved, and the foundation of China's economy requires further consolidation. Moving forward, we must unswervingly carry out the decisions and plans of the CPC Central Committee, expand and strengthen the domestic economy, consolidate the foundations, maintain our resolve, stay committed to our own path, and unswervingly promote high-quality economic development. We will use the certainty of China's high-quality economic development to counter external uncertainties and continue promoting the steady, long-term development of the Chinese economy. Thank you.