The first anniversary of ChatGPT | How does AI application make money? The big model waits for the "Watt moment"

[Editor’s note] November 30, 2022 may become a day to change human history-OpenAI, an American artificial intelligence development agency, launched ChatGPT. It not only gave birth to another round of high-light period in the field of artificial intelligence, but also is not commonly known as "steam engine moment", "iPhone moment" or even "drilling for fire moment".

In the past year, the revolutionary technology called "generative artificial intelligence" has inspired the global scientific and technological community to "redo all software and hardware", which has caused the value of AI infrastructure providers with first-Mover advantage to skyrocket, making the scientific exploration from medical care to aerospace doubly empowered. The arrival of the legendary "singularity" has never been so possible.

Just like any technological change in history, ChatGPT has also brought us deep anxiety. There are both sci-fi fears that AI threatens human survival, and realistic concerns about smashing our jobs, defrauding our money, and manipulating our hearts. Even OpenAI itself has just experienced a crisis and almost escaped the fate of collapse overnight.

This year has given us more questions: what is the next evolution direction of the big language model? When will the shortage of AI chips be solved? Is the training data running out? How will the Battle of Hundreds of Modes in China evolve? Should AI technology development accelerate or decelerate? Will AGI (general artificial intelligence) exist in other forms? To this end, we invited people in the industry who were running on the AI track in 2023 to answer these questions and ask their own questions. If you have your own answers or questions, please let us know (www.thepaper.cn).

After a year of "noisy" generative artificial intelligence, how many companies have made money because of the application of this technology?

"Domestic applications are trying to generate value, but they rarely make profits. It is really profitable to be a’ small workshop’ for digital people." Chen Ran, founder and CEO of Beijing OpenCSG, told 澎湃 Technology. Chen Lei, vice president of Xinyi Technology and head of big data and AI, believes that among foreign companies, Microsoft, which has deep cooperation with OpenAI, "should have a relatively big improvement in revenue". Liang Jiaen, chairman and CTO of Yunzhisheng Intelligent Technology Co., Ltd., said that "the AI ​ ​ image generation company Midjourney is said to have achieved a revenue of 100 million US dollars", but "there is no real AGI-Native(AGI application".

"At present, it is still in the initial stage. If the cost input and income are calculated, the profitable industries are still rare." Xiao Yanghua, director of the Shanghai Key Laboratory of Data Science and a professor at Fudan University, said that the large model has achieved remarkable results in many industries, but the effect does not mean that it can be profitable. This involves many factors, especially the cost factor. The refining of large models requires huge costs.

If you put it another way: what are the most successful industries where the big model landed first or landed? Wang Xiaohang, vice president of Ant Group and head of financial model, said: "There are two types, one is creative industries, such as design, entertainment and games; The other category is highly knowledge-intensive industries, such as finance, medical care and law. " However, strong regulatory industries such as medical care and finance require extremely high reliability, which is not only an illusion, but also financial compliance and the value proposition of each industry. If these three problems are not solved, the potential of large models will not be brought into play when they land in rigorous industries.

Specific to the medical field, Liu Qingfeng, chairman of Iflytek, introduced to 澎湃 Technology that "the medical model can complete 90% of irrational drug use reminders", and Ren Feng, co-CEO and chief scientific officer of Yingshi Intelligent, bluntly said: "It seems that overnight, things that could not be done before can suddenly be done." For example, you can get relevant results by directly talking to the big model and asking "Help me find the target for treating a certain cancer".

In the financial field, Wang Xiaohang said that in many scenarios, the fields of intention understanding, qualitative analysis and quantitative analysis have surpassed manual work. "The future service will be completed through multimodal interaction and language interaction. How to integrate with the graphical interface of the mobile Internet to form a new interface and experience may happen in the next two years."

Respondents have different views on whether there will be phenomenal applications in the coming year. Wang Fengyang, vice president of Baidu Group and head of mobile eco-business system, believes that phenomenal generative AI applications will definitely appear and will exceed everyone’s expectations. Wang Jiaping, a chair scientist at the AI Security Inclusive System Research Center of IDEA (Guangdong-Hong Kong-Macao Greater Bay Area Institute of Digital Economy), said that "it will come faster than the phenomenal application of the original Internet". An Xiaopeng, director of Alibaba Cloud Science and Technology and Research Center, is cautiously optimistic, and points out that the premise of China’s argument that there are rich application scenarios is that there are enough data accumulated in specific industries. In addition, the underlying computing power, open source models and various tools are needed to build the whole ecology and reduce the technical threshold, application threshold and cost.

"The turning point of the industrial revolution brought about by any major technological change must come from the turning point of cost." An Xiaopeng said that the steam engine was first invented to pump the water from the mine. Its cost is high and it often breaks down. "What did Watt do? He greatly improved the stability, safety and reliability of the steam engine and reduced the cost, so the steam engine changed from a special machine that can only pump water to a general machine that can pull the train forward. "

The following is an interview record, which has been deleted due to space reasons:

澎湃 Technology: What are the enterprises or industries that have achieved profitability due to the application of generative AI?

Chen Lei (Vice President of Xinyi Technology, Head of Big Data and AI):We have seen many enterprises whose valuation, user volume or revenue have increased a lot. Because of the blessing of generative AI on the Office system, Microsoft’s revenue should have a relatively big improvement, and its market value has returned to the trillion scale. In the future, there should be companies that are profitable because of generative AI.

Zhang Peng: It’s in every scene. Customer service can be partly replaced by AI, or the quality can be improved by AI. In the scientific research scene, AI helps to read literature, find information and analyze data, improve the efficiency of scientific research, and even provide some key research ideas.

Chen Ran [Founder and CEO of Beijing OpenCSG]:Domestic applications are trying to generate value, but rarely make profits. Being a "small workshop" for digital people really makes money.Foreign applications have been very well adapted, such as Copilot’s auxiliary development code, and Tom Cat’s companion is also quite successful. In the future, applications whose data are ready, can be used immediately, are used more, and bring a lot of value to everyone will immediately form an industrial chain.

Liang Jiaen (Chairman and CTO of Yunzhisheng Intelligent Technology Co., Ltd.):Midjourney, an AI image generation company, is said to have achieved $100 million in revenue. In the past, UGC (note: user-generated content) was mainly text. With this multimodal tool, UGC will be more colorful. Therefore, the application of this piece may be faster, because it is equivalent to generating many candidates for us, and then people will work together to deal with them. If you directly let the machine generate a very good result, all AIGC (note: artificial intelligence generates content) can’t do it at present.

Xiao Yanghua (Director of Shanghai Key Laboratory of Data Science and Professor of Fudan University):Whether it is profitable or not depends on costs and benefits. At present, the cost problem of large-scale model application is very prominent, and the refining of large-scale model requires huge costs, and the application of large-scale model also has costs. After considering the cost factor, whether the income is significant enough and whether it is worthwhile relative to the cost is also the key issue in empowering thousands of industries in the big model industry.

At present, it is still in the initial stage. If the cost input and income are calculated, the profitable industries are still rare. If you ask another question, what are the industries and enterprises that have achieved the application effect of the big model, then I think the answer is very clear. The big model has achieved remarkable results in many industries. For example, a large number of virtual anchors are based on the big model, and most of the work of ordinary translators can be replaced by the big model to some extent. Still, it should be emphasized that the fact that a large model can achieve results does not mean that it can be profitable, which involves many factors, especially the cost factor. Although the big model can reach some abilities and levels of ordinary people, the cost may not be lower, so this is another problem completely.

澎湃 Technology: What are the most successful industries in which large models landed first or landed? What are the difficulties?

Wang Xiaohang (Vice President of Ant Group and Head of Financial Big Model):There are two types,One is creative industries, such as design, entertainment and games; The other is highly knowledge-intensive industries, such as finance, medical care and law.Large language model is a powerful container of world knowledge map, which can rival, empower and even replace some knowledge workers to some extent.

The big model is trained based on the public data available in the whole network, and it has a strong ability to understand and generate, but there are many challenges when it comes to professional and rigorous industries. The general big model is short in professional general knowledge, such as financial professionalism. The complexity and rigor of various financial decisions are very high, and the medical industry is more complex and rigorous. For example, making a family asset allocation protection plan is not a simple recommendation, but a calculation of deviation, risk concentration, risk level and affordability. Decisions like this are not good at by big models, and it cannot be learned. Even with enough data, its rigorous combing and calculation are far from meeting today’s industry requirements.

Strong regulatory industries such as medical care and finance have extremely high requirements for reliability. The reliability I am talking about is not just an illusion, but also financial compliance and the value proposition of each industry. If these three problems are not solved, the potential of large models will not be brought into play when they land in rigorous industries. How to solve these three problems? First, large models should be combined with small models in professional fields, such as asset allocation. After understanding the needs of users, asset allocation tools should be mobilized without recalculating how assets should be allocated. Second, a structured knowledge map is very important. For example, in order to do a good job in medical claims, we should build a very complete medical and insurance knowledge map, inject it into the training process of large models, reduce hallucinations, improve professionalism, and give priority to how to combine knowledge map with large models in the application process. The retrieval enhancement technology is also very effective. Answering after content positioning in the professional field is just like finding the answer from a professional book. These technologies can greatly improve the professionalism and factuality of the large model. This is a systematic project.

澎湃 Technology: What kind of big model application can really generate value?

Zhang Peng (CEO of Beijing Zhipu Huazhang Technology Co., Ltd.):A technology will produce several values in application, such as cost reduction, efficiency improvement, quality improvement and innovation. More specifically, for example, we can do things that people can’t do, help people do simple and repetitive work, free people from this kind of work, and improve the efficiency and effect of data flow, exchange and processing in the digital age.

Chen Ran:Applications should ultimately solve pain points and serve human beings, and human beings pay for the process of generating value. Many current applications will not immediately form the next generation of applications by leaps and bounds. The intermediate stage is to make the current applications AI and eventually become native applications, that is to say, they don’t even need to click on the webpage. These applications involve shopping, tourism, catering, clothing, etc.

Liang Jiaen:At present, there is no real AGI-Native(AGI application.Just like when the mobile Internet first came out, everyone’s idea was to make the PC application smaller and put it into the mobile phone. At present, the big model application is still at this stage, and the real AI-Native(AI application still needs iteration.

But no matter what the final form is, we still have to answer a question: what problem did we help users solve? For example, in a hospital, what users want most is to have a super doctor, all problems can be solved, and even the hospital is not needed. But in this serious scene, it is not realistic to do it in one step. We can now provide doctors with some tools to help them improve their efficiency and quality, let the basic work be done by machines, and better release more high-quality medical resources. In the process of cooperation between man and machine, man is adapting to the machine, and the machine is constantly improving in the process of learning from man. In the end, it may reach the upper-middle level of experts. But there may be some difficult problems left in the future, which need people to work together to solve.

Medical treatment is one of our important directions, which is a very knowledge-intensive industry. The accuracy and quality of medical-related data can’t reach the level of good medical experts just by grabbing them on the Internet. Therefore, we will also supplement relevant data to optimize related applications. In the end, it is still problem-oriented to find the final form of AI-Native.

澎湃 Technology: How does AI apply to intelligent medicine and life sciences, and how to consider privacy and ethical factors?

Liu Qingfeng (Chairman Iflytek):Over-the-counter drugs account for 45% of residents’ medication (the over-the-counter drug market in China was 195.17 billion yuan in 2022, accounting for 45.4% of the retail drug market), but there were more than 40 million suspected irrational drug use cases in more than 600 million follow-up cases at the grassroots level. Many people have basic diseases and are prone to improper medication. There is an 85-year-old man around us who suffers from Alzheimer’s disease. After taking related drugs, he had toothache. After taking a common anti-inflammatory drug, he stopped eating for nearly 20 days, and then he slowly recovered after seeing a doctor in a provincial hospital. Later, it was found that the reason was that I didn’t know that this anti-inflammatory drug had a reaction with the original drug. In addition, there were some contraindications for drug use. The people didn’t know it, nor did the sales staff in the pharmacy, and it was impossible to ask the doctor for every disease. So, how to meet this demand?

I think ourThe medical model can remind 90% of irrational drug use.Similarly, many people can’t understand whether there are deep-seated problems after getting the medical report, but not everyone has the opportunity to consult a doctor. Iflytek has tried thousands of internal sampling examples, and it can be seen that 40% of the samples should be given more reminders, some should seek medical treatment immediately, or pay attention to various taboos, and more than 3% should be reminded to deal with them immediately.

However, the best doctor can’t be 100% right, and even if the model is more professional than the doctor, it can’t be 100% right. Therefore, we hope that the society should be strict and cautious about such business on the one hand, and never recommend prescription drugs casually according to law, and never make a conclusion casually. Once problems are found, we must remind people to "go to the hospital for medical treatment". The task of the model is to make patients more clear, not to replace doctors, but to help patients better understand the situation in the future so as to better communicate with doctors.

Ren Feng (Co-CEO and Chief Science Officer of Intel):After the appearance of ChatGPT, we conducted secondary training based on it with internal data, so that the model can support professional and accurate information question and answer of biomedicine. In the past, the traditional way was to consult a lot of literature on the biological mechanism of each target. Now, we can talk directly with the big model, such as asking "Help me find a target for treating a certain cancer" to get relevant results. This impressed me deeply, as if overnight, things that could not be done before could be done suddenly.

We are currentlyAutomated laboratories assisted by AI are already being used.Combining artificial intelligence with automation, robotics and biological capabilities, it can not only perform a single task, such as Qualcomm screening, high-content imaging, second-generation sequencing, etc., but also realize an integrated series process, such as a fully automatic closed-loop wet and dry experiment that can complete target discovery and verification within 14 days. What is the effect? Take DMTA(Design, Make, Test, Analyze) in drug research and development as an example. In the past, it took a chemist about 3 to 6 weeks to manufacture, purify, quantify and identify the required compounds in each round of synthesis, and then a series of biological analysis was carried out. The automated laboratory can process it 24 hours, the reaction can be carried out at any time, and it is possible to shorten the synthesis time from 3 to 6 weeks to 3 to 10 days. In addition to the perspective of research and development, for hospitals, doctors and patients, the empowerment of AI is all-round, such as assisting diagnosis and tracking changes in patients’ conditions in an intelligent way.

Chen Ran:We see that multimodal molecular models and image models are being made. The fields and industries that need high IQ of human beings are the development direction of large models, and the directors in hospitals are scarce resources.

Liang Jiaen:The first thing we do is to write and review medical records. We will help doctors check whether there are hidden risks in diagnosis and treatment and which ones do not meet the medical insurance standards. The bottom line we have to keep is to protect users’ privacy, and our customer-related data are desensitized data.

澎湃 Technology: What specific educational changes will AI trigger? You can refer to your practice.

Xiao Yanghua:In the future, with the rapid development of general artificial intelligence technology, its impact on education will be very far-reaching. What to teach and learn in the future, and how to teach and learn will become problems.

Every progress of artificial intelligence seems to be marked by AI passing some human examinations, such as college entrance examination, registered doctor examination and registered judicial license examination. Then the progress of AI often reflects many problems in human education, such asSince AI has passed so many human exams, what is the significance of our exams?Advanced artificial intelligence seems to have been cultivating machines into adults, while backward education seems to be cultivating people into machines, and many excellent students have been cultivated into machines that brush questions. This is a problem that education should try to avoid, so the educational problems mapped out by the development of AI deserve our attention.

The second question is how to teach and learn. In the future, the significance of knowledge acquisition and skills learning will be reduced. Modern civilization has always taken knowledge discovery and acquisition as its main purpose. We used to take "reading poetry books and learning five cars" as our glory. Such a pursuit will become less dazzling in the era of big models. Because it is the big model that is the most knowledgeable, and he has learned almost all human knowledge, then the cheapness and depreciation of knowledge will be replaced by the wisdom of human survival and development.

Zhang Peng:Once I talked with the technicians of Good Future. AI is better at learning than human beings and faster than human beings. Do our children still need to learn these basic knowledge in the future? What will children in the future learn? I said in a joking tone, learn AI. In such an era, everyone should master the principles or basic knowledge of AI. Second, we still need to learn basic knowledge. Of course, we can consider how to use auxiliary means to improve learning efficiency.

The evolution of AI is forcing the evolution of human beings. If human beings don’t want to be replaced and enslaved by AI, their own intelligence level and learning ability need to be adjusted and evolved.

Chen Ran:School resources are limited. If the resources of good teachers are precipitated through AI and become teachers in all subjects, education will definitely change qualitatively.

Liu Cong (Dean of Iflytek Research Institute):The field of education belongs to a very important and deeply accumulated scene in iFLYTEK. Therefore, when we started the large-scale model research and established the "1+N" system in December 2022, we made it clear that education belongs to one of the important landing fields of "N". Facing parents and students, iFLYTEK AI learning machine empowered by iFLYTEK Spark Cognitive Model has realized the correction of Chinese and English composition, carried out companion dialogue practice in oral dialogue, and scored children’s pronunciation. Spark language companion App allows students to communicate face to face with virtual teachers. Facing teachers, Spark teacher assistants can innovate the planning unit teaching design, inspire the creation of situational teaching activities, and generate interactive teaching courseware with one click, thus improving the efficiency of teachers’ lesson preparation.

澎湃 Technology: With reference to your case, what progress has been made in the big financial model?

Wang Xiaohang:In the small model era before the big model era, we have been fully AI-oriented, involving digital guidance, risk management, claims, financial planners, consultants and sales teams. But the arrival of the big model has brought us great shock. It can easily refresh the best performance of the small model era in many financial scenarios.Intention understanding, qualitative analysis, quantitative analysis and other fields have surpassed manual work.In the era of small model, every application scenario needs to be deeply customized end-to-end. algorithm engineer and time cost are very expensive. The large model unifies the algorithm architecture. After simple fine-tuning and adaptation, a model can solve a large number of problems, do better than before, and improve the business efficiency of enterprises, so it can accelerate innovation and make people focus on professional and in-depth creative work. Specialized financial services will also have an alternative experience. At present, all mobile Internet interactions are mainly based on graphical interface (GUI).Future services will be completed through multi-modal interaction and language interaction. How to integrate with the graphical interface of the mobile Internet to form a new interface and experience may happen in the next two years.

Our big model has been tested in depth for half a year, which is the new version of Xiaobao. We hope to bring different generations of service experiences to mass customers, answer questions in finance, be responsive to hundreds of digital tools, customize personalized service plans, and change the interactive mode of graphical interfaces. We have high expectations and hope to collect user feedback in an orderly manner to provide a better experience. Internally, we provide "small assistance" for financial planners, analysts, sales staff, claims experts and content operation creation teams. On the basis of the original digital exhibition platform tools, AI brings new productivity and improves efficiency. As a big model room, financial technology has just started, but we have also seen some rapid iterations, which have opened our eyes under the impact of the big model.

Chen Lei:What we do is a vertical model, with one end assisting manual service users and improving customer service experience; One end serves internal professional staff, combined with our understanding of business and data in finance, and is used for code-aided generation and automatic data mining. Without optimization, the efficiency of verification stage is improved by about 20%.

澎湃 Technology: Will there be a phenomenal generative AI application in the coming year?

Wang Xiaohang:I’m sure it will, but I don’t know when it will appear The next application will not be GPT itself. It should be in the industry. There will be more than one application in the industry, and all industries will have it, such as e-commerce and finance. Digital financial services have been very rich and diverse, but it is still too complicated for the public. How to bring simple, professional and intelligent wealth management services to customers is of great value. The next service experience upgrade can only be achieved through AI. Every industry is waiting for its own AI super application. Whoever has more digital conditions in the industry and who combines industry and technology will be able to bring such products.

Chen Lei:Yes, especially for code generation and code-aided applications, it will be spread in the industry soon. Everyone is trying, and many attempts have shown initial results.

Wang Fengyang (Vice President of Baidu Group and Head of Mobile Eco-business System):We have seen some apps that can reach the top of the app store in 12 hours, and the number of users behind them has exceeded 1 million. I think the phenomenal generative AI application will definitely appear, and it will exceed everyone’s expectations.

Wang Jiaping [Chair scientist, AI Security Pratt & Whitney System Research Center, IDEA (Guangdong-Hong Kong-Macao Greater Bay Area Institute of Digital Economy)]:I thinkThis will be faster than the phenomenal application of the Internet.Generative AI directly produces content, and does not need to work hard to accumulate content producers. As long as it finds consumers, its iteration and growth will definitely be much faster than before. However, the existing technology needs to be improved, because the quality is not good enough now, and many people will say that it can be seen at a glance that it was created by AI. Because the existing content system has raised the threshold to a very high level, I think it will take time for AIGC to reach this height. Once it crosses this height, it will "kill" many industries dominated by content consumption, including online texts, short videos, short plays and so on. I think it will be subversive, but this subversion may not be new or a new source industry.

Chen Ran:Not for a while, any technological development has stages and accumulation. We developed by leaps and bounds, and it took us a year to walk for 10 years. Now I’m running blindfolded on the highway at a speed of 100 miles. How do you know where the next exit is? With the rapid development of technology, it must be difficult for you to judge the direction. When you slow down, you know where the scenery is the best. It is possible to get off the bus and open a supermarket and a homestay next to it. Stop and think a little while flying, and then there will be various business models and applications.

I think next year is an important time, how to let all kinds of forms settle down and form a closed-loop business. The United States has formed the ecology of thousands of companies, and now China is fighting alone, without forming an ecological platform and community, so our company is doing this. The business model comes from practice. It requires platforms to connect upstream and downstream. Some people produce big models, some people use big models, and some people serve big models. Finally, an ecology is formed. Company A and Company B can do business together. The element of platform and community ecology is open source, through which the ecology develops rapidly.

An Xiaopeng (Director of Alibaba Cloud Science and Technology and Research Center):I am cautiously optimistic about the forecast. It is the result of many factors going hand in hand, not a single factor. First of all, for China’s argument that there are rich application scenarios, we still have to go back to the previous stage.The premise of rich application scenarios is that there is enough data accumulated in a specific industry, which means that even if the application scenarios are very rich, if this premise is lost, the quality of the model will be discounted.Second, we need the basic computing power, open source model, model training, deployment and operation, and various tools to build the whole ecology, lower the whole technology threshold, application threshold and cost, and promote the whole commercial application, which is also the work that Alibaba Cloud has to do today.

The inflection point of industrial revolution brought by any major technological change must come from the inflection point of cost. When the input-output ratio has not changed, the industrial revolution will not come. The steam engine was first invented to pump up the water in the mine, and its cost was very high. So before Watt, the steam engine was invented long ago, but the steam opportunity often broke down. What did Watt do? He greatly improved the stability, safety and reliability of the steam engine and reduced the cost, so the steam engine changed from a special machine that can only pump water to a general machine that can pull the train forward.

Let’s look at the digital technology revolution, such as computers. When IBM’s mainframes and minicomputers appeared, its influence on the progress of the whole society was limited. Only when the PC (personal computer) arrived, especially when the Internet speed was highly improved and the cost was extremely reduced, did it promote the whole round of industrial revolution. soThe inflection point of technology and the arrival of the inflection point of technology cost, coupled with the lowering of the threshold of use, will promote the technological progress of an industry.This is very critical.

Everyone says that GPU is very important, and everyone can develop GPU, so what is the most important thing we can see from NVIDIA? As Andrew Ng said, before the emergence of CUDA (note: closed-source parallel computing platform and application programming interface developed by NVIDIA, which allowed software to use certain types of graphics processing units for general processing), there may not be more than 100 people who could program with GPU in the world, but at present, the number of CUDA developers in the world has reached several million. CUDA has extremely lowered the threshold of use, and when the threshold of use has been extremely lowered to build an ecology, this ecology is a powerful moat. It’s the same for us. Real commercialization needs technology and industrialization, but in fact, the use threshold of the general public and the sharp reduction of the use cost are the key points. But this is the result of iteration, not waiting for it to decrease one day, but under the continuous iteration of technological progress and industrial application, its cost will decrease rapidly, thus promoting the development of the whole ecology.

澎湃 Technology: What is the question you want to know the answer to about the application direction of the big model?

Wang Xiaohang:In which mainstream, rigorous and deep industry will major application innovations emerge and be recognized on a large scale?

Chen Lei:What is the commercialization path of the big model? At present, the charging mode of all large models is based on the number of tokens called (note: token usually refers to the smallest unit in the text processing process in the AI field), but the hardware and manpower input are uneven. In the future, it is a key problem that the application of big model can be related to the actual business value and fed back to its pricing, and we are also curious.

Zhang Peng:Will the phenomenal AI application exist, or where will it exist?

Liang Jiaen:How to solve the controllability and reliability problems of large models when entering vertical industries to solve practical problems? At present, it is difficult to fundamentally eliminate the "illusion" in the framework of the large model, and many back-end means are needed to help improve the large model. In the laboratory, 90% and 95% of the controllability and reliability are quite high, but it is difficult for users to use it with confidence in serious scenes.

Chen Ran:The application of big model serves people, but various applications may replace people, so how to identify people’s skills?

Ten Questions about the Current Economy of China

  Xinhua News Agency, Beijing, April 18th  Question: Ten Questions about the Current Economy of China.

  Xinhua news agency reporter

  On April 18th, the first quarterly report of China economy was released. In the first quarter, the economic operation continued to recover, the growth rate of major indicators was basically stable, the quality and efficiency of development were improved, and the overall start was stable. However, the world situation has evolved in a complicated way, domestic epidemics have occurred frequently recently, some unexpected factors have exceeded expectations, and the new downward pressure has further increased.

  How to look at the economic situation, how to solve the employment pressure, how to stabilize the supply chain of the industrial chain, and how to break the difficulties of small and micro enterprises … … Xinhua News Agency reporters sorted out the top ten concerns about China’s economy and interviewed authoritative departments and people to answer them.

  (1) Difficulties and challenges are increasing. How do you view the current economic trend?

  Since the beginning of this year, China’s economy has recovered steadily, with positive changes in the first two months. However, in March, due to the changes in the Ukrainian situation and the domestic epidemic, the recovery momentum was under pressure.

  What do you think of the current economic situation? How to ensure the realization of the annual growth target of around 5.5%?

  Overall, China’s economic operation in the first quarter kept in a reasonable range and started smoothly. The current achievements are not easy.

  On April 14th, an ambulance passed by Songjiang East Road in Jilin City, and the peach blossoms on the roadside were in full bloom. Xinhua News Agency reporter Zhang Nanshe

  The important indicators supporting the macro-economy are generally stable. In the first quarter, the GDP exceeded 27 trillion yuan, up 4.8% year-on-year, higher than the growth rate of 4% in the fourth quarter of last year; The added value of industrial enterprises above designated size increased by 6.5% year-on-year, higher than the two-year average growth rate in 2021; Fiscal revenue has grown steadily, and expenditures in key areas have been strongly guaranteed; Foreign investment and foreign trade continued to maintain double-digit growth, the balance of payments was generally stable, and foreign exchange reserves remained at around 3.2 trillion US dollars.

  The transformation and upgrading continued to advance, and many indicators showed the trend of "progress".

  In the first quarter, the added value of high-tech manufacturing and equipment manufacturing increased by 14.2% and 8.1% respectively, which was significantly faster than all industries above designated size; The production and sales of new energy vehicles increased by 1.4 times year-on-year; Online retail sales of physical goods increased by 8.8%; Energy consumption per unit GDP continued to decline, and reform and opening up continued to deepen.

  At present, the economic operation is facing greater downward pressure, and the difficulties and challenges have increased significantly.

  The triple pressures of demand contraction, supply shock and expected weakening faced by economic development have not changed. The domestic epidemic situation is distributed at many points, and some cities press the "slow button", and some of the closed management areas are shut down and stopped production, and the supply chain of the industrial chain is blocked; Difficulties in some industries have increased, and small and micro enterprises are facing operational difficulties; Contact gathering consumption activities such as tourism accommodation, transportation, catering and entertainment are restricted; The employment difficulty of key groups has increased, and the number of employed people in some industries has decreased … …

  Since the Central Economic Work Conference was held last year, we have adhered to the principle of "striving for progress with stability". From the central government to the local government, macro-policies, micro-policies, structural policies, science and technology policies, reform and opening-up policies, regional policies and social policies have been accelerated, especially in the near future, we have made further efforts to race against the epidemic and difficulties, and constantly released the power of "stability" in helping the economy climb the hill.

  At present, China’s development still has many strategic advantages, such as large economy, wide room for manoeuvre and super-large-scale market. The long-term positive fundamentals will not change, and it has strong resilience and vitality. We not only face up to difficulties, but also strengthen our confidence, adhere to the principle of stability and strive for progress, and strive to achieve the goals and tasks of economic and social development throughout the year.

  (2) How to make a good account of the overall epidemic prevention and development?

  Since March, the local epidemic has spread to 30 provinces, including cities with trillion-dollar GDP such as Shanghai and Shenzhen, and agricultural provinces such as Jilin. The radiation area is wide and the chain is long, and the downward pressure on the economy is amplified in stages.

  Some overseas media and institutions frequently question that strict epidemic prevention in China is "expensive and unsustainable", and there are also arguments in society such as "lying flat" and "coexisting with viruses".

  Epidemic prevention and control is "the country’s greatest". Insist on dynamic zero clearing, and calculate big accounts and life accounts. The prevention and control work always puts "people first, life first", which is the primary criterion to judge the effectiveness of epidemic prevention.

  Omicron is not a "pandemic influenza". It spreads quickly, with a large number of infected people, and vulnerable groups are at great risk. Among China’s population of more than 1.4 billion, the population aged 60 and over reached 267 million. If it is not strictly prevented and controlled in time, it will inevitably increase the risk of infection among susceptible people. Once a large-scale rebound is formed, it will cause more serious losses to people’s lives and property, and it is easy to lose the hard-won prevention and control achievements in the early stage.

  On the other hand, at the beginning of this year, many countries and regions gradually relaxed their epidemic prevention policies, but the result was a sharp increase in the number of cases and deaths. At present, the cumulative number of confirmed cases in the world has exceeded 500 million, and the number of deaths has exceeded 6.19 million. The infection level in Britain has risen to an all-time high since March. Some British media people pointed out that the policy of coexistence with COVID-19 was "tantamount to a gamble".

  Then calculate the economic account — — Adhering to scientific accuracy and dynamic zero clearing is to win the initiative for the development of China.

  In 2020, it is precisely because China took the lead in controlling the epidemic situation and resuming production in the world that it finally took the lead in realizing economic growth from negative to positive in major economies. In 2021, China’s economy grew by 8.1% year-on-year, with an average growth rate of 5.1% in two years, and its economic development and epidemic prevention and control maintained a leading position in the world.

  Omicron mutant spreads fast, and it is more difficult to realize dynamic zero clearing. Closure measures will inevitably bring short-term economic impact, but the anti-epidemic practice in China further proves that temporary "control" is just for better "release".

  At present, policies and measures are intensively introduced from the central government to the local government, and efforts are made to achieve the maximum prevention and control effect at the minimum cost and minimize the impact of the epidemic on economic and social development.

  On April 13th, in Huapichang Town, Jilin City, Zhang Shouguo (right), director of Jilin Agricultural Mechanization Technology Extension Center, instructed farmers to purchase agricultural machinery. Jilin Agriculture and Rural Bureau has opened up a "green channel" for spring ploughing and transportation, and delivered agricultural materials and agricultural machinery to the villages where farmers are located on time and on demand. Xinhua News Agency reporter Zhang Nanshe

  On the one hand, do not miss the farming season to keep the spring ploughing. The central government issued 20 billion yuan to grant one-time subsidies to the actual grain farmers, and the National Development and Reform Commission deployed and put in 1 million tons of national potash reserves … … The agricultural situation scheduling shows that at present, 19.4% of the intended area of spring sowing grain has been completed, and the progress is 1.2 percentage points faster than that of the same period of last year.

  On the other hand, race against time to resume work and production. In Shenzhen, it took less than 10 days from pressing the "slow key" to the orderly recovery of social production and life order; Shandong, on March 29th, announced that this wave of epidemic situation since the end of February has been dynamically cleared, and the resumption of work and production has entered the "fast lane"; Jilin, on April 14th, announced the realization of social clearing and the gradual recovery of social production and living order; In Shanghai, the epidemic spread index of this round has dropped from 2.27 to 1.23. On April 16th, the epidemic prevention and control guideline for industrial enterprises to resume work and production & HELIP; …

  On the one hand, we will persist in dynamic clearing and create favorable conditions for economic and social development; On the other hand, we must adhere to scientific and precise prevention and control, and prevent layers of overweight from being "one size fits all". Only by making overall plans can we ensure that we will resolutely win this tough battle of epidemic prevention and control.

  (3) Can employment be stable in response to unprecedented pressure?

  The downward pressure on the economy bears the brunt of employment.

  According to the latest statistics, affected by multiple factors, after a moderate start in the first two months of this year’s employment, the fluctuation was obvious in March. In the first quarter, the national urban survey unemployment rate averaged 5.5%, including 5.8% in March.

  According to the data of recruitment agencies, this is the traditional peak season in March and April, and the job market is in a downturn. With the increasing uncertainty of environmental complexity at home and abroad this year, can employment be stable?

  On April 14th, in the Career Guidance Center of Central South University in Changsha, Hunan Province, students conducted job interviews through the Internet. Xinhua News Agency reporter Chen Si Khan photo

  From the perspective of employment demand, the total pressure is increasing. This year, there are nearly 16 million new growth laborers who need to be employed in cities and towns, including 10.76 million college graduates, both of which are new highs in recent years.

  From the perspective of job supply, many enterprises and individual industrial and commercial households are facing obvious difficulties, slowing down recruitment, and even reducing staff and layoffs. In the real estate, education and training, internet and contact service industries, the recruitment demand has dropped significantly.

  From the perspective of supply and demand matching, the structural contradiction of "difficult employment" and "difficult recruitment" is more prominent. The phenomenon of youth’s slow employment is increasing, and the employment problems of key groups such as college graduates and migrant workers are outstanding. In March, the unemployment rate of urban youth aged 16 to 24 was 16%, the highest in the same period in recent years.

  Stabilizing employment has become the top priority of current economic work.

  Since the Central Economic Work Conference last year, a distinctive feature is that the employment priority orientation has been further strengthened. Stable employment is placed at the macro-policy level and fully reflected in various policies. This year, the central government allocated 61.758 billion yuan for employment subsidies, an increase of 5.168 billion yuan over last year.

  Grasp the basics — — For poor industries such as catering, retail, tourism, civil aviation, highway, waterway and railway transportation, the policy of delaying the payment of pension, unemployment and work-related injury insurance premiums will be implemented; Significantly increase the proportion of stable return of unemployment insurance for small and medium-sized enterprises, up to 90%; Allow local governments to set aside another 4% of the unemployment insurance fund balance for skills training, and issue a one-time training subsidy for small and medium-sized enterprises in difficulty & HELIP; … Do everything possible to stabilize the enterprise and stabilize the post.

  Key points — — Study and introduce policies and measures to promote the employment and entrepreneurship of young people such as college graduates, and carry out special actions such as public employment services entering the campus, raising millions of trainee positions, and visiting enterprises by secretaries and presidents of colleges and universities nationwide to promote employment; Organize and implement "Spring Breeze Action" to provide employment services for migrant workers and people out of poverty … … Multi-pronged approach to ensure the employment of key groups.

  Expand space — — Strengthen efforts to promote entrepreneurship and promote employment; We will improve the flexible employment policy, carry out pilot projects of occupational injury protection for employees in new employment forms in seven provinces and seven Internet platform enterprises such as Beijing and Hainan, fill in the shortcomings of rights protection, and give full play to the role of flexible employment as a "reservoir".

  While implementing the policy of giving priority to employment, we should also do a good job in stabilizing and expanding employment, and go all out to stabilize the basic employment.

  (4) How to boost the "double engine" of investment and consumption by releasing the potential of domestic demand?

  In the "troika" that drives the economy, investment and consumption constitute domestic demand and are the "main engines" of economic growth.

  Actively expanding effective investment is the focus of current macroeconomic policies.

  Overall, the growth rate of investment rebounded rapidly and the scale continued to expand. In the first quarter, investment in fixed assets exceeded 10 trillion yuan, up 9.3% year-on-year, better than last year’s 4.9%.

  From the structural point of view, infrastructure investment, manufacturing investment and real estate development investment show "cold and warm differentiation".

  On April 14th, in the workshop of Harbin Boiler Factory Co., Ltd. of Harbin Electric Power Group, workers carried out production operations. Xinhua News Agency reporter Wang Jianwei photo

  In the first quarter, infrastructure investment increased by 8.5% year-on-year, which was faster than the previous two months and 8.1 percentage points faster than last year. It is estimated that Tiegong Shuihang has completed investment in fixed assets of about 636 billion yuan, and sichuan-tibet railway has made steady progress. Since the beginning of the year, it has issued 46.75 billion yuan of funds in the central budget for railways, civil aviation, highways and other fields … … The role of infrastructure investment in stabilizing the economy is prominent.

  In the first quarter, manufacturing investment grew rapidly, up 15.6% year-on-year, 2.1 percentage points faster than last year; However, investment in real estate development increased by 0.7% year-on-year, and the growth rate slowed down. Factors such as rising raw material prices, declining enterprise efficiency and epidemic situation may have an impact on expanding effective investment.

  Consumption plays a fundamental role in stabilizing the economic market.

  In the first quarter, the total retail sales of social consumer goods increased by 3.3% year-on-year, and household consumption was basically stable. The relatively active online retail, the rapid growth of consumption in the new country, the increasing demand of "one old and one small" and the upsurge of ice and snow economy show the great potential of upgrading residents’ consumption.

  Under the epidemic situation, consumption recovery is also facing greater constraints.

  Compared with the previous two months, the total retail sales of social consumer goods increased by 6.7% year-on-year, and the index in March was negative growth. Among them, the contact aggregate consumption such as tourism accommodation, catering and entertainment, transportation and travel has been obviously impacted — — In March, the business activity index of the service industry decreased by 3.8 percentage points compared with the previous month to 46.7%, and the domestic tourism income during the Qingming holiday was less than 40% in the same period of 2019 … …

  The stamina of domestic demand to stimulate the economy depends not only on the strength of expanding effective investment, but also on the degree of promoting consumption recovery.

  Actively expanding effective investment is accelerating its efforts — — By the end of March, all the 3.65 trillion yuan local government special bond quota for project construction has been released; The 102 major projects planned in the "14th Five-Year Plan" are being pushed forward, and 71,000 special debt projects have been reserved in various places. The annual investment in water conservancy projects and projects can be about 800 billion yuan … …

  Measures to promote consumption recovery have been introduced one after another — — The relief policies for poor industries such as catering, retail, tourism, civil aviation, highway, waterway and railway transportation have been put in place; Do a good job in ensuring the supply and stable price of basic consumer goods to ensure smooth logistics; Expand consumption in key areas, promote the consumption of services such as medical care, old-age care and nursery education, and support social forces to fill the short board of service supply … …

  The characteristics of big country’s economy are that domestic demand is dominant and internal circulation is possible. The "Opinions of the Central Committee of the Communist Party of China and the State Council on Accelerating the Construction of a National Unified Market" released a few days ago has injected a strong impetus into expanding domestic demand from a deeper level.

  As the second largest economy in the world, China’s large-scale market and huge domestic demand potential mean that the strategy of expanding domestic demand will be firm, and the "engine" of domestic demand to drive the economy needs to be stronger.

  (V) Under multiple pressures, can foreign trade and foreign investment continue to grow at a high rate?

  Foreign trade and foreign investment, two indicators of China’s outstanding economic performance last year, still performed well in the first quarter of this year, and both achieved a "stable start" with double-digit growth.

  In the first quarter, the total import and export of goods was 9.42 trillion yuan, a year-on-year increase of 10.7%; The actual use of foreign capital was 379.87 billion yuan, a year-on-year increase of 25.6%. In the face of repeated epidemics at home and abroad and the increase of new variables in the international situation, it is not easy for the two indicators to continue to grow steadily at last year’s high base.

  On April 14th, the first train of Great Wall Motor special train was running on the special railway line of Yongchuan National High-tech Zone in Chongqing (photo of drone). Xinhua News Agency reporter Tang Yushe

  What are the reasons for the steady growth of foreign trade?

  Trade "friends circle" is more diverse — — In the first quarter, ASEAN surpassed the European Union to become China’s largest trading partner again. China’s import and export of countries and regional comprehensive economic partnership agreements (RCEP) along the "Belt and Road" continued to grow. "the west is not bright and the east is bright." More new markets also mean more room for growth.

  More business entities have strong support — — In the first quarter, the number of foreign trade enterprises with import and export performance was 432,000, a year-on-year increase of 5.7%. Among them, the import and export of private enterprises was 4.52 trillion yuan, up 14.1%, accounting for 48%, up 1.4 percentage points year-on-year. Under pressure, the growth of foreign trade subjects is the best proof of resilience and vitality.

  Of course, compared with the high growth rate of nearly 30% and 40% in the same period last year, the growth rate of foreign trade and foreign capital in the first quarter of this year has declined.

  This is mainly affected by the high base last year, repeated epidemics at home and abroad, and the complex evolution of the Russian-Ukrainian conflict. Many foreign trade enterprises with good orders in the first quarter admit that the pressure will increase in the second and third quarters. The impact of the epidemic on production and transportation, coupled with the erosion of profits by high sea freight, will be further revealed.

  In order to stabilize foreign trade, a series of policy measures have been taken in time — — Measures such as tax reduction and fee reduction, smooth logistics, speeding up the progress of export tax rebate, strengthening export credit insurance support, and developing new foreign trade formats have been accelerated, bringing "timely rain" to enterprises and escorting foreign trade.

  Considering the high base and some unexpected factors exceeding expectations, it is difficult for foreign trade to continue the high growth last year, but the "stable start" of foreign trade just proves the solid foundation and great potential of China’s foreign trade. China’s industrial chain and supply chain are complete, and enterprises themselves are working hard. Coupled with the help of enterprises and the implementation of foreign trade policies, all parties work together to achieve the goal of maintaining stability and improving quality in foreign trade in the future.

  Stabilizing foreign investment also has foundation and confidence — —

  According to the recent report of American Chamber of Commerce in China, under the influence of epidemic and other factors, over 60% of the enterprises surveyed plan to increase their investment in China this year, and over 80% of the enterprises in Huamei will not consider moving out of China. Recently, many well-known multinational companies have increased their investment and layout in China around low-carbon business.

  In the first quarter, China continued to attract foreign investment on a "stable" basis, and the investment in high-tech industries increased by over 50% year-on-year, with the growth of high-tech service industry approaching 60%. The new opportunity for China to build a new development pattern of generate is the gold spot for foreign investment.

  In the face of all kinds of uncertainties, many policy measures are also making active efforts: further strengthening the service guarantee of foreign capital, and coordinating and solving the problem of foreign-funded enterprises returning to work and production; In-depth implementation of the negative list of foreign investment access to accelerate the landing of major projects … …

  Under the downward pressure of the economy, China has unswervingly promoted high-level opening-up, implemented national treatment for foreign-funded enterprises, and created a more convenient business environment, so that more foreign-funded enterprises can stay and take root in China.

  (6) With the global inflationary pressure rising, will domestic prices rise sharply?

  Under the background of widespread inflation in major economies around the world, China’s prices generally operate in a reasonable range.

  In the first quarter, China’s CPI rose by 1.1% year-on-year, including 1.5% in March, which was larger than the previous two months, but it was still in a moderate category and lower than the expected domestic target of 3%. In March, the national producer price index (PPI) rose by 8.3% year-on-year, and the growth rate dropped for five consecutive months.

  The "scissors difference" between CPI and PPI has further narrowed. In 2021, the "scissors difference" between CPI and PPI was 7.2, and it was 6.8 in March this year, indicating that the effect of ensuring supply and stabilizing prices continued to appear.

  Although the PPI rose in March, it was still at a high level. This is closely related to the international import influence. Affected by geopolitical conflicts, international commodity prices continue to rise, driving up domestic prices of oil and non-ferrous metals, and enterprises in the middle and lower reaches are facing higher cost pressure.

  In this regard, the relevant state departments have taken timely measures such as two-way regulation of supply and demand and joint supervision of futures and spot markets to stabilize abnormal fluctuations in commodity market prices, stabilize market expectations, and promote PPI growth to fall for months.

  At present, the supply of industrial and agricultural products and services in China is abundant, and the ability to effectively cope with abnormal fluctuations in market prices has been significantly enhanced, which still has good support for maintaining the stable operation of prices throughout the year.

  Meihekou city, Jilin Province, staff sorting "vegetable bag" dishes (photo taken on April 7, drone photo). Xinhua news agency

  CPI index is related to the price of people’s "vegetable basket" and "rice bag".

  Recently, the prices of some people’s livelihood commodities, such as vegetables, gasoline and diesel, which have a high correlation with daily life, have increased greatly and have a wide range of increase, which has led to a strong feeling of rising prices among residents, and there is a "temperature difference" between the data and the people’s feelings.

  This is mainly because the price of pork accounts for a relatively large proportion in China’s CPI "basket" commodities. Since the beginning of this year, pork prices have continued to decline sharply, with a year-on-year decrease of 41.4% in March, which lowered the CPI increase.

  Since the beginning of this year, the prices of some domestic people’s livelihood commodities have risen, mainly due to changes in the international situation and epidemic situation, not changes in the fundamentals of China’s market supply.

  As commodity prices continue to run at a high level, the trend of PPI transmission to CPI will continue, and the prices of general commodities will rise slightly. In addition, with the transition of the pork market from the basic balance of supply and demand to the tight balance, it is expected that pork prices will enter the upward channel in the second or third quarter, driving CPI to rise moderately.

  On the whole, the annual price increase may be larger than last year. In view of the short-term upward pressure on prices, it is necessary to further improve the price control mechanism. Especially in areas affected by the epidemic, we should strengthen price monitoring and early warning, appropriately reduce the starting conditions of price subsidies, and avoid the impact of price fluctuations on basic people’s livelihood.

  (7) Smooth the supply chain cycle of the industrial chain, and how to get through the blocking points?

  Industrial products logistics accounts for about 90% of the total social logistics, and more than 90% of the whole process of production supply chain is in logistics. The epidemic situation caused the transportation of some raw materials and finished products to be blocked, which affected the extension to the production end.

  At the same time, some factories stopped production due to the epidemic, the price of raw materials rose at a high level, and the cost of enterprises rose … … The superposition of multiple factors has caused people’s concerns about the supply chain of industrial chain.

  On April 13th, in Daxing Agricultural Products Logistics Park, Zhougudui, Hefei, the driver scanned the code on the intelligent access control system. The park has set up an intelligent access control system with the functions of temperature measurement, checking Ankang code and data collection, so that drivers and passengers entering the park can check quickly without getting off the bus, realizing the intelligent temperature measurement for epidemic prevention and the traceability of people and vehicles. Xinhua News Agency reporter Du Yu photo

  At present, the domestic supply chain is partially blocked, and the uncertain factors affecting the stability of the industrial chain increase. On the one hand, logistics efficiency has decreased. The conflict between Russia and Ukraine disturbed the international logistics order, and the trains in China and Europe and international air transport were affected. The epidemic situation has led to poor transportation across regions and ports in some areas. On the other hand, supply faces some constraints. For example, Shanghai has key industrial clusters such as automobile manufacturing, biomedicine, integrated circuits, etc., and it is also a base for warehousing and product assembly of many processing and manufacturing enterprises. The epidemic will inevitably have an impact on related industries.

  Although the challenges have increased, it is mostly due to the short-term impact brought by the epidemic, and the overall operation of the industrial chain is still stable. Controlling the epidemic in time and refining the measures to ensure the smooth supply chain of the industrial chain will add stability and safety to the normal operation.

  China has an independent and complete industrial system, with obvious supporting advantages. In the first quarter, the added value of industrial enterprises above designated size increased by 6.5% year-on-year. In March, the added value of 37 industries in 41 industrial categories increased year-on-year. The resilience of industrial economy itself provided strong support for the stability of industrial chain and supply chain.

  At present, the key is to focus on blocking points and unblock them in time, to avoid short-term difficulties turning into long-term trends, and to protect enterprises in the "chain" from being dragged down by current problems.

  Ensuring logistics is a top priority. Ten important measures to ensure the smooth flow of logistics and promote the stability of supply chain in industrial chain are deployed in the national video conference, which requires efforts to achieve "people’s livelihood should be guaranteed, freight should be unblocked, and industries should be recycled" Announce the national unified vehicle pass for key materials transportation, effectively guarantee the passage of key materials and postal express delivery, and optimize the control measures for epidemic prevention … … While strictly implementing the epidemic prevention policy, a series of deployments have accelerated the opening of the blocking points that restrict the domestic circulation.

  Stable production is the key. The white list system of supply chain enterprises with stable key industrial chains in many places across the country is accelerating; The working group in front of the Ministry of Industry and Information Technology rushed to Shanghai to find out the situation of enterprises, and concentrated resources to give priority to ensuring the resumption of work and production of 666 key enterprises.

  Focus on the present, do a good job in ensuring the supply and price of raw materials, implement preferential policies such as tax reduction and fee reduction, financial credit, etc., and ease the operating pressure of enterprises; Focus on the long-term, strive to break through the bottleneck of "stuck neck" technology, accelerate the digital transformation of manufacturing industry, and develop "specialized and innovative" small and medium-sized enterprises … … To fight the tough battle of upgrading the industrial base and modernizing the industrial chain, China needs to make continuous efforts to strengthen the chain.

  (8) Stabilize market players, and how can we help small and medium-sized enterprises to bail out more effectively?

  On April 12th, workers were busy in a textile enterprise in shishi city, Quanzhou, Fujian. Xinhua News Agency (photo by Zhou Yi)

  In March and April, which should be the textile peak season, many textile factory owners were in a panic. Affected by the epidemic, some clothing trade wholesale markets temporarily closed down, and textile mills cut production one after another.

  In the first quarter, the development index of small and medium-sized enterprises declined, and the indexes of industry, construction, transportation, postal storage, wholesale and retail, accommodation and catering were all below the critical value of prosperity.

  At present, many small and medium-sized enterprises are facing challenges such as reduced orders and operating income, increased arrears, high raw material prices, and rising labor and transportation costs. The contradiction of "increasing production without increasing income, increasing income without increasing profits" is prominent, and the differentiation among enterprises continues to expand.

  It is a top priority to help small and medium-sized enterprises.

  On the one hand, it is necessary to do "subtraction" in operating costs, and tax reduction and fee reduction are the first choice. The scale of tax refund and tax reduction this year is about 2.5 trillion yuan, of which about 1.5 trillion yuan is reserved for tax refund. In order to direct funds to enterprises, the central government has issued the first batch of special transfer payments of 400 billion yuan for small and micro enterprises to stay and refund taxes. Since April, the large-scale tax refund policy has been officially implemented, and within 11 days, 155.7 billion yuan of tax refund funds have fallen into the accounts of 203,000 taxpayers.

  On the other hand, it is necessary to do "addition" on cash flow, and credit support can be described as "timely assistance". In the first quarter, the loan demand of small and micro enterprises was further released. At the end of March, the balance of Pratt & Whitney small and micro loans and the number of credit granting households increased by 24.6% and 42.9% respectively.

  On April 15th, the People’s Bank of China announced an overall RRR cut of 0.25 percentage point, and an additional 0.25 percentage point reduction for city commercial banks and rural commercial banks with deposit reserve ratio higher than 5%, so as to enhance the ability of financial institutions to provide credit to small and micro enterprises and "agriculture, countryside and farmers".

  The National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Human Resources and Social Security and other departments have successively launched relief measures. The People’s Bank of China has newly set up two special re-loans for scientific and technological innovation and universal pension, increased re-loans for supporting agriculture, and increased financial support for smooth logistics and stable supply chain of industrial chain & HELIP; …

  At the same time, Jiangsu introduced "40 measures", Guangdong introduced "47 measures" and Hunan introduced "36 measures" … … From rent reduction to subsidies, various localities have launched more targeted relief measures according to local conditions; Enterprises are also trying to actively "hematopoietic" to save themselves.

  Respond to the new difficulties and demands of small and medium-sized enterprises in a timely manner, ensure that the "combination boxing" of burden reduction and relief will be effective as soon as possible, and use real money in the cutting edge, so as to better stabilize the expectations of small and medium-sized enterprises and stimulate market vitality to a greater extent.

  (9) How to prevent and resolve risks and guide the virtuous circle and healthy development of the real estate market?

  At present, the national real estate market is generally stable. In March, among the 70 large and medium-sized cities, the sales prices of commercial housing in various cities stabilized from the previous month; Investment in real estate development increased by 0.7% in the first quarter, down 3 percentage points from January to February.

  The real estate industry is large in scale, long in chain and wide in scope, and plays a decisive role in the national economy. In 2021, the added value of China’s real estate industry accounted for 6.8% of GDP.

  Under the influence of multiple factors, such as multiple outbreaks of epidemic, this round of real estate market adjustment is facing new situations and challenges. From the supply side, in the first quarter, the newly started housing area and land acquisition area decreased by 17.5% and 41.8% respectively, and the investment in real estate development grew slowly; From the demand side, due to the shortage of funds and the debt risk of individual real estate enterprises, the market expectation weakened and buyers delayed entering the market.

  Since the beginning of this year, the market differentiation has become more obvious. The expectation of market rebound in some hot cities in the Yangtze River Delta and Pearl River Delta regions has gradually increased, and some urban markets with continuous population outflows are still operating at a low level.

  In response to the new situation and new challenges, all localities focus on supporting the first set of rigid housing demand, reasonable improvement demand and rental housing demand. Banks in more than 100 cities have lowered their mortgage interest rates independently according to market changes and their own operating conditions; In some cities, if families with two or three children buy the first home, the upper limit of the housing provident fund loan amount will be raised … …

  At present, the rental population in Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou and other big cities has accounted for more than 40% of the permanent population. Increase the supply of affordable rental housing in response to the rental needs of new citizens, young people and other groups. Statistics show that in 2022, the total investment in affordable rental housing for capital construction in China is estimated to be about 850 billion yuan.

  To guide the virtuous circle and healthy development of the real estate market, we must firmly hold the position that "houses are for living, not for speculation".

  It should be pointed out that the corresponding adjustments made by various localities in view of different situations in the real estate market are not the reversal of real estate control policies. It is necessary to maintain the continuity and stability of regulatory policies, enhance accuracy and coordination, and strive to achieve the goal of stabilizing land prices, housing prices and expectations.

  On April 3, in Daowai District, Harbin, workers were working at the construction site of Beimen Street Elevated Project of China Railway No.1 Bureau. Xinhua News Agency reporter Xie Jianfei photo

  At present, the debt default risk of individual head real estate enterprises still exists. In this regard, relevant departments and local governments are carrying out risk disposal and resolution according to laws and regulations, with the primary goal of "ensuring the delivery of buildings, ensuring people’s livelihood and ensuring stability" and working together to mitigate the risks of real estate enterprises.

  Maintaining a virtuous circle and healthy development of the real estate industry is related to the people’s housing and the stable development of the macro-economy, which is the embodiment of China’s overall development and security under the complicated situation.

  (10) Under the multiple challenges, how to ensure the stable supply and price of grain and energy?

  Ensuring food and energy security is crucial to the stable and healthy development of the economy and society.

  Affected by the rare autumn flood last year, the late sowing area of winter wheat accounted for one third, and the proportion of first-class and second-class seedlings has basically remained the same as in previous years. Under the closed management in some areas, the swing of agricultural materials, straw leaving the field and the return of agricultural workers are affected to varying degrees.

  At the east exit of Jilin Changchun Expressway, returning farmers boarded the returning bus line (photo taken on April 12). Xinhua news agency

  The price of agricultural materials has risen. In the second week of April, the wholesale prices of urea, diammonium phosphate and potassium chloride increased by 35.5%, 17.9% and 82.4% per ton year-on-year, and the price of agricultural diesel oil rose sharply. Nearly 30% of China’s potash consumption is imported from Russia and Belarus. Due to the conflict between Russia and Ukraine, the exports of the two countries are blocked.

  Risks in the international market have increased. Last year, nearly 30% of corn and barley imported by China came from Ukraine. The export volume of wheat and corn from Russia and Ukraine accounts for 29% and 19% of the global trade volume. The conflict between Russia and Ukraine has triggered an increase in international food prices, increasing the difficulty and cost of China’s import. In the first quarter, China imported 20.28 million tons of soybeans, the quantity decreased by 4.2% year-on-year, but the amount increased by 20.9%, highlighting the increase in the price of imported soybeans. Soybean and corn, as feed raw materials, are directly related to the aquaculture industry and easily affect the price of meat.

  At present, China’s basic policy of stabilizing grain has not changed, and the country is taking a series of measures to ensure that China’s rice bowl is firmly in its own hands:

  Strong reserves. The total grain output has remained above 1.3 trillion Jin for seven consecutive years, and the grain inventory is at a historical high level. In particular, the two major grain rations, wheat and rice, account for more than 70% of the total inventory, and their ability to prevent risks has been enhanced.

  On April 12, farmers in Yangwan Village, Cailing Town, duchang county, Jiujiang City, Jiangxi Province drove agricultural machinery to work in the field. Xinhua News Agency (photo by Fu Jianbin)

  Guaranteed output. At present, the transformation of wheat seedling situation is better than expected, and the intended planting area of grain has increased steadily. All localities should pay close attention to spring sowing, and relevant departments should take measures to ensure the supply of potash fertilizer. China will increase the supply of corn and soybean, expand the soybean planting area in Northeast China, promote the strip-shaped compound planting of soybean and corn, ensure the completion of the task of expanding soybean oil seeds, make rational use of international resources, strengthen the regulation of reserves, and maintain the balance between supply and demand. This year, the area of winter rape has increased and its growth is better than that of last year.

  Ensure production capacity. This year, China will build 1 billion mu of high-standard farmland, stably guarantee the grain production capacity of more than 1 trillion Jin, accelerate the implementation of the national black land protection project, increase the comprehensive utilization of saline-alkali land, and vigorously implement the soybean and oil production capacity improvement project.

  Affected by the conflict between Russia and Ukraine, international energy prices are soaring, and the risks faced by foreign oil and gas procurement are rising. In the first quarter, the amount of natural gas imports increased by 68.7% year-on-year, but the actual import volume decreased by 5.1%.

  Many parties are taking measures to promote the storage and production of domestic oil, natural gas and coal. A good trend is that in the first quarter, the output of industrial raw coal, crude oil and natural gas above designated size in China increased by 10.3%, 4.4% and 6.6% respectively, and the power generation increased by 3.1%. This year, the country will achieve the goal of returning the crude oil output to 200 million tons, and the natural gas output will continue to increase steadily, and accelerate the construction of large-scale wind power photovoltaic bases planned in deserts, Gobi and deserts.

  Based on the national conditions, strengthen the role of coal, coal and electricity. In recent months, the National Energy Administration has approved several coal mine projects in Shanxi, Shaanxi, Ningxia and other places, and the release of high-quality coal production capacity is accelerating according to laws and regulations. Recently, the national coal output has remained at a high level. Since the middle and late February, the daily output has been over 12 million tons, an increase of more than 10% year-on-year.

  Relieve the operating pressure of coal-fired power enterprises. After fully liberalizing the on-grid tariff of coal-fired power generation, this year, we will further improve the coal market price formation mechanism, guide the coal price to operate in a reasonable range, promote the coordinated development of upstream and downstream of coal-fired power generation, and ensure the safe and stable supply of energy. Through the construction of energy storage and transportation capacity, the flexibility and toughness of energy supply chain will also be strengthened.

  Ensuring food and energy security is a major strategic and fundamental issue. Only by firmly holding the bottom line of safety and taking the initiative of development in our own hands can we better cope with the uncertainty of the external environment with the certainty of our own development.

  After a smooth start, it is even more necessary to move forward. In response to the downward pressure, relevant authorities said that on the one hand, it is necessary to adhere to scientific accuracy and dynamic clearing, and control the current epidemic as soon as possible; On the other hand, it is necessary to seize the second quarter window period, implement various measures to stabilize growth, and ensure stable and healthy economic and social development. (Reporter Han Jie, Xie Xiyao, Wei Yukun, Liu Xiacun, Wang Youling, Wu Yu, Ye Yuming, Jiang Lin, Zhang Xinxin, Yu Jiaxin, Yu Wenjing, Gao Jing, Zhao Wenjun, Wang Yueyang)

The largest ultra-deep oil field produces more than 10 million tons of oil and gas, and China has entered a new stage of ultra-deep oil and gas scale development.

CCTV News:On October 9th, China Petroleum announced that it is the largest ultra-deep oil field in China — — The cumulative production of oil and gas in Fuman Oilfield has exceeded 10 million tons, which indicates that China’s ultra-deep oil and gas has entered a new stage of scale development.

Recently, Well Fudong-1 in Fuman Oilfield has obtained high-yield oil and gas flow in an ultra-deep layer of 8,000 meters underground, which has opened up a new field of oil and gas replacement under the main pay zone of Fuman Oilfield. Since the beginning of this year, Tarim Oilfield has focused on ultra-deep oil and gas exploration in the desert hinterland. Four thousand-ton wells and 45 hundred-ton wells, including Manshen 71 and Fuyuan 8, have been drilled in Fuman Oilfield, and the drilling success rate has remained above 95%.

Li Xuguang, Head of Hade Oil and Gas Management Zone in Tarim Oilfield, PetroChina:This year, we put more than 50 new wells into operation on the east-west 190 km front of Fuman Oilfield, making its annual production capacity reach 2.6 million tons, making it the fastest ultra-deep oilfield in China’s deep field.

Fuman Oilfield is a key energy security project in China, with an oil area of 17,000 square kilometers, equivalent to that of Beijing, and oil and gas resources exceeding 1 billion tons. It is the deepest and largest ultra-deep crude oil producing area found in China at present.

Li Xuguang, Head of Hade Oil and Gas Management Zone in Tarim Oilfield, PetroChina:In the seven years since the discovery of Fuman Oilfield, oil and gas production has increased rapidly, and capacity expansion has been carried out three times in succession to speed up the construction of China’s crude oil production demonstration zone.

Tarim Oilfield, where Fuman Oilfield is located, is the third largest oil and gas field in China and the main gas source of west-to-east gas transmission. In the first nine months of this year, it produced 24.69 million tons of oil and gas, a net increase of one million tons year-on-year, the highest level in the same period in history.

Tarim oilfield: "underground Everest" oil and gas production

The average oil and gas in Fuman Oilfield is buried in the ultra-deep stratum of 7000-10000 meters. Tarim Oilfield innovates engineering technology, guides the drill bit to break through the barrier of rock layers, and exploits the oil and gas buried underground for hundreds of millions of years.

Recently, China Petroleum Company’s first ultra-deep well with a design exceeding 9,100 meters has been drilled to 8,333 meters, which is a key technology for drilling into a depth of 10,000 meters. In the past two years, Tarim Oilfield has challenged the limit of engineering technology and successfully developed a series of drilling and production tools with ultra-high temperature and ultra-high pressure of 140 MPa made in China. The annual drilling footage has exceeded one million meters, which is equivalent to drilling more than 100 Mount Everest every year.

Liu Hongtao, Dean of China Petroleum Tarim Oilfield Oil and Gas Engineering Research Institute:There have been 45 8000m ultra-deep wells drilled in the oilfield this year, and we are now tackling the drilling technology of 10,000m deep wells to support the exploration and development of 35 million tons, 40 million tons and even 50 million tons in the oilfield.

Tarim Basin is the largest ultra-deep oil and gas production base in China, with oil and natural gas buried more than 6,000m accounting for 83.2% and 63.9% of the whole country respectively. The deepest drilling record and the deepest oil and gas production record in China are set here, and the oil and gas output of Tarim Oilfield in ultra-deep strata reaches more than 15 million tons every year.

Xuzhou urban construction corruption case: bribery by lottery and corruption by yin-yang contract


Yang Yongan was questioned by the prosecutor.



Wang Shen and Zhang Jiliang were tried in court.


  In April this year, Yang Yongan, former deputy director of the demolition and resettlement office of Yunlong District Urban Construction Key Project Command (referred to as Yunlong District Urban Construction Command in this paper), and Wang Shen, former director of the General Office, were investigated and prosecuted by Yunlong District Procuratorate in Xuzhou City, Jiangsu Province, and Zhang Jiliang, former staff member of Xuzhou Urban Construction Key Project Command Office, was found guilty of corruption in the first instance. The court found that the defendant Yang Yongan paid a compensation fee of 364,000 yuan for corruption and demolition, and accepted a bribe of 635,000 yuan from the demolition contractor; Defendant Wang Shen paid compensation of 1,365,800 yuan for corruption and demolition, and accepted bribes of 10,000 yuan from others, including compensation of 1,092,200 yuan for corruption and demolition together with defendant Zhang Jiliang and 273,600 yuan for corruption together with relocated household Zhang Qingming. The above four people were sentenced to 15 years, 10 years and 6 months, 8 years and 5 years respectively by the court of first instance. On June 8, the reporter learned that after the verdict was pronounced, the four defendants did not appeal, and the judgment has now taken effect.


  The exposure and investigation of this typical corruption case have uncovered some hidden rules of corruption in the demolition field for us: the "tricky" demolition often occurs in two links: the contracting of demolition projects (multiple bribery cases) and the payment of compensation for demolition (multiple corruption cases)-when contracting demolition projects, Yang Yongan asked the person in charge of the demolition company to draw lots to get the project list, but the project list he reserved did not enter. In the process of compensation for demolition, Wang Shen made a number of compensation targets for demolition through illegal operations, made a "yin-yang contract" by means of measuring more areas and forging official seals, and took compensation for demolition for corruption.


  Yang Yongan should be spontaneous when eating naka.


  Yang Yongan, 50 years old, was formerly the deputy director of the Administrative Law Enforcement Bureau of Yunlong District, Xuzhou City. In 2004, he also served as the deputy director of the Demolition and Resettlement Department of Yunlong District Urban Construction Headquarters, responsible for the contract work for the demolition of abandoned houses, factories and equipment after the relocation.


  "Yang Yongan in the process of demolition project contracting to the contractor how many quantities, all according to the relationship between distance, how many benefits to him. He says as much as he wants, and eating and taking cards should be done casually, so the contractor of the demolished project is called’ Yang Dazui’. " Zhuo Song, the prosecutor in charge of the Yang Yongan case, said.


  From April to August, 2007, Yang Yongan took bribes and embezzled from 11 demolition contractors for 10 projects in Xuzhou East District, with a total demolition fee of 999,000 yuan. Yang Yongan’s illegal gains obtained by taking advantage of his position are mostly used to buy funds, except for a small part of his daily expenses. In August 2007 alone, Yang Yongan bought a fund of 800,000 yuan. On the eve of the stock market crash in 2008, the amount in Yang Yongan’s fund account reached more than 1.4 million yuan at its peak, which also became a thing that Yang Yongan always talked about.


  Lot Lot is Yang Yongan’s way to make money.


  As the saying goes, "eat mountains by relying on mountains, and eat water by relying on water." Yang Yongan guarding a pile of ruins can also give birth to "gold". Through reading the file, the reporter found Yang Yongan’s way of making money-"Lot Lot Lot".


  After the demolition project is confirmed, Yang Yongan will call the responsible persons of the demolition companies and ask them to go to his office to collect the project list by "drawing lots", which is the so-called "lot lot lot". The project list contains the specific location, area and unit price of the demolition project. The construction team that greeted Yang Yongan in advance or had a good relationship with him will also get the work orders he reserved. Of course, these work orders did not enter the ranks of "lottery", which is also an important weight for Yang Yongan to take the opportunity to ask for benefits.


  In addition, it is up to Yang Yongan alone to decide whether the quantity of work on the bill of works and the objects to be demolished are good or bad (which determines the profit of demolition). In order to get Yang Yongan’s special "care", each construction team will pay tribute to Yang Yongan more or less, which has become an open secret.


  According to the regulations, each construction team should pay the project demolition fee to the financial department of Yunlong District Urban Construction Headquarters according to the engineering quantity before entering the construction site. But sometimes Yang Yongan directly asks the construction team for the demolition fee without issuing a receipt, and the whereabouts of the money is unknown. Construction teams that have encountered this situation are generally embarrassed to ask for a receipt because of face.


  Later, Yang Yongan simply asked the construction teams to pay him the "project introduction commission fee" according to the 2 yuan money per square meter of engineering quantity after getting the project list, which did not include the "tribute" part of the construction teams. Although the construction teams are angry, they need Yang Yongan to take care of them when they draw lots, so they have to submit to humiliation.


  "gambling on the orchid" leads Wang Shen to the point of no return


  Wang Shen, 46 years old, served as the deputy director of the Urban Planning and Construction Bureau of Yunlong District before serving as the director of the comprehensive department of Yunlong District Urban Construction Headquarters in 2004. Before the incident, he was mainly responsible for the compensation calculation, qualification examination and signing of the compensation agreement for demolition and resettlement of Xiangshan Road South Extension Project in Xuzhou City.


  "Compared with Yang Yongan, Wang Shen has a good reputation among cadres in Yunlong District. He is the president of Xuzhou Orchid Association. He doesn’t smoke or drink. He basically has no other hobbies except cultivating orchids. He is known as the’ Orchid Director’ in Yunlong District. It is also the orchid that led Wang Shen to the point of no return. " Zhang Tinghui, the prosecutor of Wang Shen’s case, said.


  Wang Shen liked orchids when he was young, and his love at that time was purely a hobby. In recent years, he likes to buy wild bluegrass from the mountains and wait for it to be sold when it blooms, commonly known as "gambling on bluegrass". Wang Shen once bought a pot of orchids at the Kunming World Expo for 6,000 yuan, and then sold it for 20,000 yuan. That profit made Wang Shen see the commercial value of orchids.


  Orchid is a kind of precious flower species, and people in the industry know that raising orchids means economic investment, and gambling on orchids is a kind of high consumption. Ten bets and nine losses are considered lucky, and ten bets and ten losses are common, and Wang Shen is no exception. This also laid the groundwork for his future corruption and bribery.


  Wang Shen used the "Yin-Yang Contract" to collect money crazily.


  The incident of Wang Shendong’s window originated from the "Yin-Yang Contract" in the demolition compensation case of Xuzhou Storage and Transportation Company.


  Most of the land occupied by Xuzhou Storage and Transportation Company belongs to storage and storage, which was bought by the government before the demolition was determined, and only a small part of the land and its affiliated houses were included in the compensation scope (after the implementation of the policy, the company should receive compensation of about 30,000 yuan). In the file of compensation for demolition and resettlement of Yunlong District Urban Construction Headquarters, the investigators of Yunlong District Procuratorate found the demolition compensation agreement that the company accepted compensation of 350,000 yuan. When the investigators went to the company for verification, they were surprised to learn that the compensation contract held by the company was inconsistent with the contract in the above file. The former compensation amount was 190,000 yuan, while the latter compensation amount reached 350,000 yuan. Although the company issued a receipt for receiving 190,000 yuan, it did not get a penny at the time of the incident. Although the official seals of the two contracts are similar, they are still recognized by the investigators. The "Yin-Yang Contract" incident made investigators realize that it was time to "move" Wang Shen.


  After arriving at the case, Wang Shen quickly confessed that he and Du Xinfeng listed Xuzhou Storage and Transportation Company as the object of compensation for demolition through illegal operation, and made a "Yin-Yang contract" by means of multi-bidding, multi-measuring area and forging official seals to collect compensation for demolition. He personally earned 60,000 yuan. However, Wang Shen never imagined that Du Xinfeng not only got the "multi-standard and multi-calculation" money, but also deducted all the compensation from Xuzhou Storage and Transportation Company, although the money should not be fully compensated to Xuzhou Storage and Transportation Company.


  So, who is Du Xinfeng? Du Xinfeng, formerly the deputy director of the Construction Bureau of Gulou District, Xuzhou City, often had meetings and meals with Wang Shen because of his working relationship. Du Xinfeng was also entrusted by the person in charge of Xuzhou storage and transportation company for this joint crime. At present, Du Xinfeng has been sentenced to 15 years in prison by the Gulou District Court for the crimes of corruption, bribery and fraud, among which the crime of fraud was determined because of this "yin-yang contract".


  The compensation case of Xuzhou storage and transportation company made Wang Shen succeed in his first attempt, which made Wang Shen jumpy, but was quickly overwhelmed by the joy of making a fortune and buying his beloved "orchid".


  Shortly thereafter, when Zhang Qingming, an old classmate who did not meet the compensation object policy, found him, Wang Shen did the same thing, overpaying and calculating, and defrauded the compensation of more than 210,000 yuan. The old classmate gave him 84,000 yuan.


  In March 2008, the south expansion project of Xiangshan Road in Xuzhou City came to an end, but there was still a balance of more than 1 million yuan in the special account for demolition compensation. Wang Shen couldn’t hold back any longer. He and Zhang Jiliang, the former staff member of Xuzhou Urban Construction Key Project Command, used the ID cards of Li Xiaojun and other five people, fake real estate licenses and fake demolition compensation agreements to play "empty gloves and white wolves". In just four months, they frantically took out compensation of more than 1.09 million yuan, and Wang Shen and Zhang Jiliang got 550,000 yuan and 540,000 yuan respectively.

  Related links:



  • Di Shu ‘ai: "Bribery Agreement" —— Another Hard Proof of Real Estate Corruption 2009-05-15

  • Young cadres become high-risk groups in corruption cases, and the forms of bribery are increasing. 2009-04-28