3. Adhering to the strategy of expanding domestic demand and fostering a strong domestic market. To address the influence and impact of the epidemic, we will tap into and stimulate both the supply and the demand potentials of the domestic market, and enhance the role of domestic demand as a driver of economic growth.

1) We will unleash the potential of consumption. While maintaining effective epidemic containment measures, we will promote the orderly resumption of business with regard to all kinds of stores and markets, and facilitate the speedy recovery of offline consumption. We will foster and expand online consumption and promote closer integration between the internet and various modes of consumption. We will promote integrated development of online and offline consumption in services such as education, healthcare, elderly care, domestic services, culture, tourism, and sports. Further support will be given to internet-based takeout and food delivery platforms, online ride-hailing, and other new types of business. We will expand the coverage of e-commerce and express delivery services in rural areas, and facilitate the flow of industrial goods into rural areas and of agricultural products to the cities. We will step up development of the 5G network and applications, improve the layout of new types of infrastructure, promote ultra-high definition video, virtual reality, and other forms of emerging consumption, and develop the wellness industry. Efforts will be made to actively increase purchases of vehicles and the parallel import of vehicles will be allowed if their exhaust emissions are tested up to China VI standards. Rewards and subsidies will be provided as appropriate to the Beijing-Tianjin-Hebei region and other key areas to remove diesel trucks at and below China III emission standards from the roads. We will increase financial support for purchases of vehicles and environmentally friendly smart home appliances. Subsidies for replacing old home appliances with new ones will be encouraged in localities where conditions allow. We will step up the building of a recycling system for old home appliances. We will expand the supply of smart, customized, and environmentally friendly products, and promote green consumption. We will develop some cities into international consumption centers and create regional consumption centers based on local circumstances. We will actively develop smart business clusters and step up the building of new types of cultural and tourism consumption clusters. We will quickly reopen rural tourism and farm-based recreation, and encourage development of the nighttime economy. Restrictions on low altitude airspace will be loosened in an orderly manner, and development of the general aviation network will be stepped up. We will strengthen efforts to build national logistics hubs, national backbone cold-chain logistics bases, and commodity distribution networks, and promote the development of the supply chain and of cold-chain, smart, and international logistics. We will promote the coordinated development of e-commerce and express delivery services. We will also intensify efforts to renovate and upgrade pedestrian malls. We will improve the consumer credibility system, work hard to address problems like substandard goods, counterfeiting, and infringements, intensify regulation of the commodity distribution market in rural areas, improve the legal framework and policy system for consumer rights protection, and thereby create a safe and reassuring consumption environment.

2) We will increase effective investment. A total of 600 billion yuan from the central government budget will be allocated for investment this year, 22.4 billion yuan more than last year. Issuance of local government special bonds will total 3.75 trillion yuan, an increase of 1.6 trillion yuan year on year. In line with the requirement that funding follows specific projects, we will make good use of projects funded by these special bonds, and give priority to supporting infrastructure and public service projects that will yield a certain degree of revenue. We will shore up weaknesses in public health, biosecurity, emergency supplies, material and energy reserves, logistics facilities, agriculture, forestry, water conservancy, and urban and rural infrastructure. We will introduce policies for supporting the construction of new types of infrastructure, and promote investment in new types of infrastructure including 5G, the Internet of Things, the Internet of Vehicles, the industrial internet, artificial intelligence, and the national big data center. We will push forward the renovation of old residential communities in cities, with the focus on improving local amenities such as water, power, and gas supply networks, roads, and information services facilities, while adding elevators and parking facilities where conditions allow. We will carry out urban renewal, work harder to build car parks and install charging facilities in cities, improve sewage and waste treatment facilities in urban and rural areas, adopt comprehensive solutions in areas affected by mining-induced subsidence, and relocate or renovate independent industrial and mining areas and old industrial areas within cities. We will work steadily to rebuild run-down urban areas. We will successfully conduct the 165 major projects set out in the 13th Five-Year Plan and key projects of major national strategies for regional development. Efforts will be redoubled in building high-speed railway lines along the Yangtze River and the coastline. Construction will begin on the Chengdu-Lhasa Railway, and the planning and construction of intercity and intra-city (suburban) railways for major city clusters and metropolitan areas will be sped up. We will accelerate major water conservancy projects that are already underway and start a number of new ones. We will step up projects for building, relocating, renovating, or expanding hub airports, and promote the development of regional airports and general-purpose airports in a well-planned way. We will press ahead with the construction of national expressways, ordinary national and provincial trunk highways, rural roads, and inland waterways. In line with the requirement that factors of production follow specific projects, we will provide green channels for major projects by ensuring land use, sea use, and energy use for these projects. We will continue to increase financial support, give full play to the guiding role of government funds, and promote well-regulated and innovative application of the PPP model, thereby encouraging the participation of non-governmental capital in strengthening areas of weakness and in new types of infrastructure projects. We will prudently carry out trials of real estate investment treatment trusts for infrastructure, and fully stimulate the enthusiasm of all type of non-governmental capital including private investment, thereby putting to use all idle assets.

3) We will strive to keep public expectations stable. We will improve the mechanisms for the release of epidemic information, providing the public with information in an open, transparent, timely, and accurate fashion in accordance with law. We will increase public awareness and education about the Law on the Prevention and Control of Infectious Diseases, and put out a high density of authoritative information across multiple levels, thereby more effectively ensuring overall social stability. We will increase policy stability and predictability, improve policy target management and the mechanism for releasing major government decisions, and make our policies more transparent. We will promote policy coordination between departments and between central and local authorities, strengthening coordination in terms of the orientation, objectives, timing, and scope of policies. We will further strengthen the management of expectations, adopt new approaches in policy communication, do an effective job with regard to information release and policy interpretations, respond promptly to public concerns, and boost the confidence of market entities.

4. Pressing ahead with supply-side structural reform and steadily enhancing industrial chains and supply chains We will revitalize the real economy, constantly enhance basic industrial capacities and modernize industrial chains, and maintain the stability and competitiveness of China’s industrial chains and supply chains.

1) We will increase support for businesses, in particular micro, small, and medium-sized businesses and self-employed individuals. We will simplify procedures for all policy measures designed to help businesses, and handle matters related to enterprises online as far as possible. We will accelerate the review of intermediary service charges and rectify all kinds of irregular charges on enterprises. We will work to lower energy, internet, logistics, and rental costs for enterprises. We will continue to reduce electricity prices for large industrial enterprises (with the exception of energy-intensive ones) and general industrial and commercial businesses by 5% and cut average charges for broadband and dedicated internet access services by 15% in the second half of the year. The rental of state-owned real estate will be reduced, and owners of all other types of property will be encouraged to reduce or postpone the rental payment. The problem of defaults on payments to private enterprises and SMEs by government agencies and SOEs will be resolved within the set time frame. To guide banks in benefitting the real economy, we will encourage commercial banks to grant interest relief for a certain period of time on loans to enterprises in areas badly hit by the epidemic as well as businesses engaged in the wholesale and retail trade, the hotel and restaurant trade, logistics and transportation, culture, entertainment, tourism, and foreign trade which have also suffered greatly. We will refine the policy of subsidizing interest payments on guaranteed loans for business startups, increase the proportion of credit loans and the renewal of loans for micro and small businesses, increase support for first-time loan receivers, and increase inclusive finance lending by large commercial banks to micro and small businesses by more than 40%. We will support financial institutions in issuing 300 billion yuan of financial bonds for granting micro and small business loans. The net corporate debt financing secured on trust will increase by 1 trillion yuan over last year, and micro and small businesses will realize 800 billion yuan of accounts receivable financing this year. We will encourage the capital market to increase financing support for sci-tech SMEs in fighting the epidemic. Major enterprises and leading enterprises will be encouraged to use available financing to make advance payments in cash to both upstream and downstream micro, small, and medium-sized businesses. We will issue guidelines on supporting private manufacturers in stabilizing growth and transforming and upgrading, and encourage local governments to help and support quality private enterprises in difficulties through market-based measures.

2) We will promote high-quality development of the manufacturing sector. More medium- and long-term loans will be provided to support manufacturing enterprises, with the focus on high-end equipment manufacturing, the transformation and upgrading of traditional industries, and electronic and information manufacturing. We will effectively implement projects for enhancing core competitiveness in the manufacturing sector, and improve the service system for technological transformation. We will launch smart manufacturing projects and formulate guidelines on promoting the smart-technology upgrading of the manufacturing sector. We will actively encourage the reorganization and transformation of steel enterprises, continue to optimize the layout of the petrochemical industry, and continue to help relocate and renovate hazardous chemical plants located in densely-populated districts. We will also carry out the green manufacturing initiative. We will promote the use of steel understructures and prefabricated modules, and promote integrated development of smart manufacturing and industrialization of construction industry. Support will be given to demonstration areas for the transformation and upgrading of old industrial cities and resource-dependent cities. We will launch pilot and demonstration programs to foster advanced manufacturing clusters.

3) We will ensure stability in the industrial and supply chains. We will ensure the smooth, improved operation of logistics and transportation networks, and support enterprises in increasing their stock of key materials. We will implement projects for rebuilding industrial foundations. We will make great efforts to boost the development of those enterprises that have a leading position in their industries, cultivate a number of internationally competitive advanced manufacturing clusters, and give full play to role of industrials chains in concentrating industries. We will develop a group of SMEs that apply special, sophisticated techniques to produce unique and novel products. Research will be conducted on carrying out supply chain risk assessment, optimizing productivity layout, and increasing emergency reserves in order to further enhance the resilience and stability of supply chains. We will push on with the project for the innovative development of the industrial internet, set up a system of industrial internet platforms, and enhance compatibility between different platforms. We will promote integrated development of advanced manufacturing and the modern service industry, and vigorously develop service-oriented manufacturing. We will also step up the building of a public service platform for producer services, and boost producer services such as research, development, and design, modern logistics, and inspection, testing, and certification.

4) We will strive to develop new drivers of economic growth. We will press ahead with the projects to develop China’s strategic emerging industry clusters, and develop complexes of public services for innovation. Innovations will be made in providing financial products and services to strategic emerging industries. We will press ahead with the cloud-based big data and artificial intelligence initiatives, the digital transformation partnership campaign, the SME digitalization campaign, and the initiatives for cultivating new forms of business in the digital economy. We will build pilot zones for innovative development of the digital economy, facilitate the digitalization of key sectors of the economy and society such as manufacturing and commodity distribution, develop digital e-commerce, and support the building of digital supply chains. We will press ahead with the national big data strategy, the Internet Plus action plan, the development of new types of smart cities, and the in-depth application of 5G technology. We will vigorously develop the bio-economy, exploit and utilize biological resources effectively, and cultivate hubs of bio-industrial development. We will step up the development of smart manufacturing, unmanned delivery, online shopping, healthcare, robotics, and other emerging industries. We will support the development of the commercial space industry, extend the space industry chain, and expand satellite applications in areas such as communications, navigation, and remote sensing. We will formulate a national strategic plan for developing the hydrogen power industry. We will support the development of new-energy vehicles and the energy storage industry, and implement the strategy for the innovative development of intelligent vehicles. We will speed up the innovative development of open-sea and deep-sea fishery and aquaculture facilities, and develop modern marine ranching.

5) We will ensure food security and market supply of agricultural and sideline products. We will deepen supply-side structural reform in the agricultural sector, and further implement the system whereby provincial governors are held responsible for food security and municipal mayors are held responsible for non-staple food supply. We will draw up a new national medium- to long-term plan for ensuring food security and a plan for the distribution and structural adjustment of agricultural productivity in the new era. We will draft and carry out a response plan for ensuring China’s food security in spite of the effects of the global pandemic, accelerate the drafting of a law to ensure food security, expand the quality grain project, and continue to implement the initiative to boost soybean production. We will increase the supply of high-quality green grain and edible oil, and make sure farmers’ incomes are boosted, enterprises improve their performance, and consumers receive real benefits. We will make solid progress in developing high-quality farmland, launch an initiative for conservation tillage on chernozem soils in northeast China, implement projects to upgrade the modern seed industry and protect animal and plant resources, and strengthen the monitoring, prevention, and control of crop diseases and pests. We will refine the policy regarding subsidies for the purchase of agricultural machinery. We will advance rural scientific and technological innovation, step up the training of agricultural scientific and technological personnel, and promote cooperation and coordination between all types of agricultural research institutes and colleges in accelerating the training of high-level agricultural talent, thereby providing stronger scientific and technological support for food security. We will adopt innovative methods to improve the system for coordinating grain production, purchase, storage, processing, and sales, and tighten up the monitoring, early warning, and regulation of the grain market, while improving the management of grain reserve security, and taking active measures to expand the capacity of grain silos for summer harvests. We will ensure the implementation of the subsidy policy for agricultural insurance premiums. We will carry out the policies for setting minimum purchase prices for wheat and rice, refine the mechanism for combining market-based purchases with government subsidies for corn and soybeans, and implement the policy for guaranteeing base prices for cotton. We will continue to boost hog production, and monitor, prevent, and control African swine fever, highly pathogenic avian influenza, and other major animal epidemics and diseases, promote higher-quality development of livestock and aquaculture farming, and accelerate the revitalization of the dairy industry. We will launch projects to build storage and cold-chain logistics facilities for agricultural products, and support the development of e-commerce in rural areas. We will diversify imports of major agricultural products, ensure the supply and distribution of daily necessities, and guarantee the quality, safety, and stable supply of grain, edible oil, meat, eggs, fruits, vegetables, and other major agricultural products.