Economic Daily: Surging New Movements Can Make China's Economy Stronger

The 2nd Digital China Construction Summit, which just closed, docked 587 digital economic projects with a total investment of 456.9 billion yuan, of which 308 were contracted and a total investment of 252 billion yuan. Behind the fruitful achievements, the supporting role of new momentum for economic development has been further strengthened.

Since this year, the transformation of new and old kinetic energy has been further accelerated, making positive contributions to the smooth start of China's economy. New industries are flourishing, new formats are emerging, innovation and entrepreneurship activities are increasing, and enterprise vitality is increasing. The data from the National Bureau of Statistics show that in the first quarter, China's industrial structure has been continuously optimized and the tertiary industry has made steady progress. The national service industry production index grew by 7.4% year-on-year, 0.1 percentage points faster than in the previous two months and 0.2 percentage points faster than in the fourth quarter of last year. On the industrial side, the proportion of high-tech industries has increased, and the added value of industrial high-tech industries has increased by 7.8% year on year, faster than that of industries above scale by 1.3 percentage points, accounting for 13.5% of all industries above scale and 0.8 percentage points higher than that of the same period last year. The added value of industrial strategic emerging industries increased by 6.7% year on year, faster than 0.2 percentage points of industries above scale. Among them, the development of digital industry is particularly rapid. Driven by the rapid development of emerging industries such as 5G and AI, information transmission, software and information technology services increased by 21.2% year on year in the first quarter. With the development of new industries, traditional industries have accelerated technological transformation. In the first quarter, China's investment in manufacturing technology reform increased by 16.9%, 10.6 percentage points faster than the total investment.

New products are growing rapidly. In the first quarter, the output of mobile communication base station equipment, urban rail vehicles, new energy vehicles and solar energy (3.490, 0.00, 0.00%) increased by 153.7%, 54.1%, 48.2% and 18.2% respectively.

New formats are emerging. Internet enterprises are constantly innovating in network music and video content, travel, life services and public service platforms, which has led to a steady expansion of the scale of Internet revenue. In the first quarter, enterprises mainly providing production service platform, life service platform, science and technology innovation platform and public service platform realized business income of 32.91 billion yuan, an increase of 24.8% over the previous two months, an increase of 14.4 percentage points over the previous two months. The rapid development of new momentum promotes the gradual improvement of enterprise profits. According to preliminary statistics, in the first quarter, the total business income of central enterprises reached 6.8 trillion yuan, an increase of 6.3% compared with the same period last year, and the income of 23 central enterprises increased by more than 20%. The total profit reached 426.5 billion yuan, an increase of 13.1% compared with the same period last year. The added value of private industrial enterprises above the scale increased by 10.6% over the same period last year, 4 percentage points faster than the same period last year.

The improvement of enterprise profits also stimulates the burst of innovation enthusiasm and the enthusiasm of entrepreneurship. In the first quarter, 165,500 enterprises were newly registered every day, up 12.3% from the same period last year. Behind the explosion of new momentum and innovation and entrepreneurship, a series of reforms such as "release control clothing" have further released dividends, the business environment has been continuously optimized, and market expectations and confidence have been continuously enhanced. Since this year, China has implemented a larger-scale tax reduction and fee reduction. On January 1, China began to implement the inclusive tax reduction and exemption policy for small and micro enterprises. Only the policy of tax reduction of enterprise income tax benefits 17.98 million enterprises; on April 1, deepening the reform of value-added tax further releases vitality, and tax rates of manufacturing, transportation and construction industries have been reduced; since May 1, the contribution rate of enterprises with social insurance premium rate has been reduced.

Take multiple measures to solve the problem of difficult financing and high cost for enterprises, and enhance the ability of financial services to the real economy. In the first quarter, Renminbi loans to the real economy increased by 1.44 trillion yuan compared with the same period last year, and the interest rate of new loans to small and micro enterprises was 6.87%, which was 0.52 percentage points lower than last year.

Issued Guidelines on Promoting the Healthy Development of Small and Medium-sized Enterprises and the Reform of the Authorized Management System of State-owned Capital; launched the fourth batch of pilot reforms of mixed ownership of state-owned enterprises to promote reforms in key areas such as oil, natural gas and electric power; and set up scientific innovation boards and pilot registration systems... Continuous reform has injected tremendous new momentum into China's economic development.

More benefits are still being released: At the 2nd Digital China Construction Summit just concluded, 11 units, such as the State Network Information Office, the Ministry of Industry and Information Technology, the Ministry of Ecological Environment and the Ministry of Agriculture and Rural Areas, issued or interpreted the latest policies or reports in their respective fields. The Ministry of Industry and Information Technology and the State Asset Management Commission of the State Council jointly announced that special actions will be carried out to further promote broadband network speed-up and fee-reduction, and support high-quality economic development. It is clear that the average fee for mobile network traffic will be reduced by more than 20%. From July 1 this year, the relevant departments will also reduce and exempt the registration fee of real estate, and expand the scope of reducing patent application fees and annual fees.

In the new round of technological revolution and industrial transformation, Chinese enterprises are seizing the opportunity to make a layout in the fields of 5G, artificial intelligence, industrial Internet and Internet of Things. The accelerated growth of new momentum will also play an increasingly important supporting role in stabilizing economic growth, adjusting economic structure and expanding social employment.