Xi Yanchun (host):

Good morning, ladies and gentlemen, welcome to the State Council’s policy briefing. Today’s policy briefing mainly focuses on two topics. The first one is about building demonstration bases of mass entrepreneurship and innovation. On this issue, we are glad to have Lin Nianxiu, vice chairman of the National Development and Reform Commission, Sui Zhenjiang, vice mayor of Beijing, and Chen Biao, vice mayor of Shenzhen, to give introductions. The second one is about policy measures to promote and stabilize foreign trade. On this issue, we are glad to have Qian Keming, vice minister of Commerce, and Zhang Ji, assistant minister of Commerce, to give introductions. Now, Mr. Lin, please.

Lin Nianxiu:

Good morning, I’m very glad to attend today’s policy briefing. As you know, on April 20, the State Council executive meeting passed a plan to build demonstration bases of mass entrepreneurship and innovation. I want to take this opportunity to give you a brief introduction on this from three aspects.

First, plan drafting. Premier Li Keqiang stressed that mass entrepreneurship and innovation is becoming the new engine that drives economic and social development, and efforts should be made in policy implementation and priority work for construction of demonstration bases and platforms. At the same time, efforts should also be made in building a marketing mechanism that supports mass entrepreneurship and innovation, cultivating mass entrepreneurship in all sectors, boosting new technologies, products, industries, and models, promoting development of a new economy, and achieving the transformation to new driving forces. This year’s government work report explicitly put forward that a group of demonstration bases should be built. According to the Premier’s instructions and the plan of the State Council, eight departments, including the ministries of Education, Science and Technology, Industry and Information Technology, Finance, Human Resources and Social Security, State-owned Assets Supervision and Administration Commission, and the China Association for Science and Technology, jointly studied and drafted the plan.

Lin Nianxiu:

During the draft work, we strived for the “three adherences”:

First, adherence to solving problems and categorizing demands. Mass entrepreneurship and innovation has integrated all sectors of economic and social development. To motivate people’s enthusiasm and creativity, efforts should be made to tackle problems that restrict the development of mass entrepreneurship and innovation. During the draft work, we made deep analysis based on diverse features of entrepreneurship and innovation among different social groups and designed a working plan by categorizing the needs of all sides.

Second, adherence to mass wisdom and suggestions. The drafting group went to places such as Zhongguancun and Shenzhen and held expert meetings regarding entrepreneurship investment and services and heard suggestions, especially advice from makers. We also organized cities, universities, and enterprises to carry out studies.

Third, adherence to effectiveness and coordination. To start the construction of demonstration bases of mass entrepreneurship and innovation as soon as possible, we jointly put forward suggestions regarding the layout of the first group of demonstration bases. At the same time, detailed construction plans of some demonstration bases have been made and are ready to be implemented.

Lin Nianxiu:

Second, main content of the plan. The plan explicitly stipulates construction target, detailed missions, and related work arrangement, and encourages demonstration bases to gather resources from universities, scientific research institutions, manufacturing enterprises, Internet platforms, and financial and intellectual property rights service agencies to develop with audacity, accumulating replicable and successful experiences and pushing mass entrepreneurship and innovation to a higher and deeper level. The main content of the plan can be generalized into “four targets, three types of demonstration bases, and dual enthusiasm of central and local governments”.

“Four” refers to four goals: construct advanced and distinctive demonstration areas for mass entrepreneurship and innovation; develop supportive platforms; break through the bottleneck of policies that restrict the development of mass entrepreneurship and innovation; promote some typical successes and modes nationwide. The document was made according to these goals.

“Three” refers to three types of demonstration bases. The current work done by different ministries and local governments, and the features of eastern, central, western and northeastern regions were taken into consideration. The document proposed three types of demonstration bases of mass entrepreneurship and innovation - regional demonstration bases, colleges and scientific research institutions demonstration bases, as well as enterprise demonstration bases. Their demonstration function and development goal were also made clear in the document.

“Two” means that the active role played by both the central and local governments. At the central government level, related ministries such as the National Development and Reform Commission (NDRC) should enhance overall planning and give more support in policy. They should also pay attention to supervision and evaluation. Local governments should improve the organization and system, innovate the mechanism and carry out various tasks assigned to them. We need to consider the role of market mechanism, which is also important.

Lin Nianxiu:

Fourth, Demonstration area construction

Three phases of promoting the construction of demonstration areas.

First is the starting phase. The first demonstration areas need to further make clear what to demonstrate and the goal according to their characteristics and practical situation. They should make detailed schedules and publish them to receive public supervision.

Second is the construction phase. In the first half of 2016, the NDRC will demonstrate and examine the work schedules with other related ministries. An evaluation mechanism and a notification mechanism will be established. Demonstration areas will start work according to the finalized plan, which will be rolled out in the first half of the year.

Third is the promotion phase. At the beginning of 2017, the NDRC and other related ministries will carry out supervision and third party evaluations. Mutual modes and typical experiences will be promoted nationwide. Next we will expand demonstration bases and gather the useful factors to deepen the development of mass entrepreneurship and innovation.

I just gave a brief introduction of the plan. Next I will answer your questions.

Xi Yanchun:

Thanks for Mr Lin’s introduction. Next let’s welcome Mr Qian Keming.

Qian Keming:

Friends from the press, good morning. I’m glad to attend the policy briefing today. First, on behalf of the Ministry of Commerce, I’d like to thank you for your concern and support to our work.

The State Council executive meeting on April 20 decided to carry out policies to promote the transformation and upgrading of foreign trade. Next I will give a brief introduction of the policy to you.

This year’s foreign trade situation is more complicated than last year, and the downward pressure is also increasing. Customs data show that China’s total trade volume was $802.14 billion in the first quarter of this year, a decrease of 11.3 percent year-on-year. During the same period, export volume was $463.93 billion, a decrease of 9.6 percent, and import was $338.21 billion, a decrease of 13.5 percent. But we also learned that the competitiveness of China’s foreign trade is still strong, and the development structural of foreign trade is also upgraded and optimized. We are gathering new driving forces and have the basis to develop sound and stable trade this year.

We all know that foreign trade is an important part of the national economy and an important driving force for GDP growth. Promoting stable growth in foreign trade is of great significance to maintain a smoothly operating economy. In this year’s government work report, Premier Li Keqiang clearly stated that stable growth in foreign trade is a goal of this year’s government work. Under a complicated foreign trade situation, maintaining stable growth and adjusting structure are this year’s two goals, and we should take targeted measures to promote supply-side structural reform in foreign trade and make every effort to promote stable growth in foreign trade and its upgrades.

In order to implement the government work report, the Ministry of Commerce recently organized 17 investigation teams to conduct in-depth studies on 200 key enterprises in more than 20 provinces and regions, and carry out questionnaire surveys on more than 3,000 enterprises. Along with 17 other departments such as Ministry of Foreign Affairs and the National Development and Reform Commission, the Ministry of Commerce established several measures to promote the stable growth of the foreign trade based on the survey results. These five measures can be summarized as follows:

First, encourage financial institutions to provide loans to profitable foreign trade enterprises. Expand policy financing for export credit insurance and increase the scale of short-term export credit insurance to cover exports of large-scale equipment. Increase the tax refund rates for exports of some mechanical and electrical products and improve the management methods of export tax refunds.

Second, consolidate the competitive advantages of traditional foreign trade. Improve policies for processing trade and comprehensive use of finance, land and financial policy support to transfer the processing trade from eastern regions to the central and western regions.

We will encourage enterprises from central and western China to attract investments from eastern China. After moving the processing plants out of eastern areas, the vacated land can be used for developing business, tourism and nursing homes. We will also cancel the approvals for the processing trade businesses and improve regulations. We will support the development of border trade, improve the government’s financial support for border trade and guarantee that frontier areas receive the funds to promote the development of small-scale traders in border areas.

Third, create new competitive advantages for the growth of foreign trade. We will speed up the building of an international marketing network, set up a batch of overseas demonstration and distribution centers, wholesale market and retail outlets. We will encourage enterprises to build overseas marketing and service systems, and support key companies to build service centers and production bases in areas such as cars, machinery, telecommunications and railway transportation and ocean engineering. We will speed up the creation of domestic foreign trade brands and specific export-targeted brands. We will also boost overseas promotions of domestic brands, increase credit support for acquisitions of overseas brands and marketing systems.

Fourth, optimize the structure of foreign trade. We will expand the number of pilot projects in cross-border e-commerce, market purchase trade model and comprehensive trade service enterprises. We will support enterprises to build overseas storage of export goods and overseas operation centers. We will implement an active import policy, support the import of advanced equipment and technologies. We will lower the import rate for some daily consumption products to bring people’s consumption enthusiasm back, and continue to promote foreign trade through two-way investment. And we will try to stabilize the scale and speed of foreign investments, and improve the quality of inbound investment.

Fifth, improve the foreign trade environment. We will further facilitate foreign trade, reduce the inspection rate for exports and intensify guide and supervision over the categorization of goods.

By the end of this year, the “single window” method in international trade will be expanded to some central and western areas from the coastal regions. We will promote paperless working procedure for customs clearance and reduce and regulate some fees collected from enterprises and implement the charging lists for customs fees and the charging methods of port goods.

At the same time, governments at all levels should attach great importance to the foreign trade work and help make sure all the policies are implemented. We will improve the accuracy of policies, learn from the successes and release targeted measures according to local situations. The combined measures taken by central and local governments and their continuous strive for restructuring will help to advance the innovative and stable growth of foreign trade.

Just as a national teleconference on foreign trade was held on April 21 to give advice on import and export stabilization, through exchanges among local governments and enterprises, the Ministry of Commerce will focus on the goal of stabilizing import and export trade. We have made 2016 as the year for putting a foreign trade policy in place, and will adopt a batch of targeted and effective measures, and concentrate on helping enterprises cut down costs and optimizing the environment for foreign trade. We should be confident that the difficulties will be overcome and the goal for a stable foreign trade will be achieved.

Now I’m ready to take your questions.

Xi Yanchun:

Thanks for Mr Qian’s introduction, now the floor is open. Please identify yourself before raising your question.

CCTV:

Could you tell us, what’s the government’s consideration in the decision to build the demonstration bases, when mass innovation and entrepreneurship are currently in full swing, and how is it different from other pilot projects? Also, could you give us an introduction to the ongoing venture at Zhongguancun in respect to the current situation and the features? In addition, as Zhongguancun is to build one of the first batches of the demonstration bases, what’s your plan to carry out the construction work?

Lin Nianxiu:

As I said before, building the demonstration bases to promote mass entrepreneurship and innovation is one of the key tasks presented in this year’s government work report. The purpose is to spur people’s initiative to make efforts and tackle the problems in innovation and entrepreneurship. I would like to make three explanations for the decision.

First, it will help form an environment in which innovation is encouraged and failures are tolerable. In the demonstration bases, we will take measures, such as streamlining administration, delegating power, strengthening regulation and improving service, to eliminate the obstacles constraining innovation and entrepreneurship, and further open the markets. Next, the successes from the demonstration bases will be duplicated and promoted to other research institutions and companies, and we can foster the culture of innovation and a favorable environment for innovation of the whole society.

Second, a multi-layer system for promoting innovation and entrepreneurship will help release the innovation potential for many people from different backgrounds, from elites to grass-roots. We also attaches great important importance to grass-roots entrepreneurship. For different groups of people, we will carry out targeted measures to meet their various needs. For example, we will give support to grass-roots entrepreneurs, relieving them from economic worries, facilitate two-way mechanisms for scientific researchers, step up public products and service supply to give the entrepreneurs more opportunities, and develop incubators to improve people’s innovation capacity. In short, we expect people, including not only researchers, but employees and entrepreneurs, to give full play to their potential for innovation.

Third, it will be good to cultivate new industries through the integration of resources and open and shared platforms in building demonstration bases. It is of significance to integrate resources concerning public services on an open and shared platform, which will help and encourage market participants to establish new companies, industries, and even markets, and foster clusters of innovation and competitive industries with regional features.

Lin Nianxiu:

This implementation plan has three characteristics, especially in its convenient operability.

First, implement different policies in different regions. We have chosen some representative demonstration bases based on the differences in eastern, central, western and northeastern China. We have planned three bases, as just mentioned: regional demonstration bases, colleges and scientific research institutions demonstration bases, as well as enterprise demonstration bases. Construction goals and tasks have been specified for the three bases.

Second, focus on problems and think of targeted approaches to solve these problems. We have to find and solve problems through practice. It is generally believed that problems will still exist before the policy is implemented. We insist that we not only need top-level designs to establish and improve the transmission mechanism, but also we should explore practical solutions from the grass-roots. During the process, we have to enhance communication and interaction. We also have to draw up and examine good experiences on the basic level. On a universal level, we want to bring effective policies and measures from practice on the basic level. Then they will be promoted and coordinated on a national level to solve these problems.

Third, focus on comprehensive cohesion, making overall plans and taking all factors into consideration. This is the starting point of this policy. We all know that the State Council has done much work in building the innovative capability, supporting small and medium-sized enterprises, promoting talent flow and ensuring employment. The plan stressed that we have to connect all kinds of pilot projects and demonstration work mechanism through a joint ministerial meeting system. We have to mobilize the initiatives of central and local governments, enterprises, colleges and entrepreneurs to form strong forces to further promote mass entrepreneurship and innovation.

Sui Zhenjiang:

I would like to take this opportunity to thank the media for your concerns and support to the work of entrepreneurship and innovation in Beijing and Zhongguancun. There are six aspects for entrepreneurship and innovation in Zhongguancun, First, a long history. Since the reform and opening-up, entrepreneurship and innovation trends have been formed in Zhongguancun. In the 1980s, a group of scientific and technical personnel started to create their own businesses. They made their fortunes beginning with trade, and then developed pillar industries and key products through technical innovation. For example, Lenovo, the first generation of innovative enterprises, and Baidu, the second generation. Today, with the development of a new era of information technological revolution, a large number of enterprises in emerging industries have been developed, such as enterprises in the sectors of Internet, intelligent manufacturing, artificial intelligence and machine learning.

Second, big influence. The work concerning mass entrepreneurship and innovation has been developed with the promotion of the CPC Central Committee and the State Council since the 18th CPC National Congress. On Sept 30, 2013, President Xi Jinping came to Zhongguancun with members of the Political Bureau and called for building an innovative country. In May and October 2015, Premier Li Keqiang came to inspect Zhongguancun twice. He inspected the Zhongguancun Innovation Street and delivered an important speech at the first mass entrepreneurship and innovation week. A new situation is growing in Zhongguancun, with talent from both home and abroad gathering here, and the business environment is improving.

Third, abundant platforms. In the past two years, over 200 innovation service platforms of all kinds have been built at Zhongguancun, with 305 branches across the country. These platforms include professional ones such as those for colleges, enterprises and academies, as well as community-oriented ones serving ordinary people.

Fourth, a good environment. With over 30 years’ development, the innovation culture at Zhongguancun is getting richer. A series of pilot policies and measures have been successful and are being promoted in other innovation demonstration zones. As a result, the atmosphere for entrepreneurship and mass innovation is improving.

Fifth, fruitful results. The total number of newly established enterprises in Zhongguancun jumped to 24,000 in 2015, from 13,000 in 2014, and their advantages focus more on the transformation from Internet plus business innovation to deepening technological innovation such as artificial intelligence, intelligent hardware, intelligent manufacturing, self-driving cars, and new materials. Data shows that entrepreneurial investment cases accounted for 32% of all of the investment cases, accounting for 25% of all investment last year, which shows that people’s passion for mass innovation and entrepreneurship is very high. The number of patents applying for authorization reached 35,000, and the value of transactions for technology contracts reached 345.2 billion yuan. Since its establishment two years ago, Zhongguancun Innovation Street has been the incubator of up to five start-ups every day, and is attracting more investment and innovative talent.

Sixth, new trends. With mandates from the central government, colleges, academies, and State-owned enterprises are making efforts in innovative development, thus a trend of popular innovation is being formed.

Sui Zhenjiang:

Concerning how to promote mass innovation and entrepreneurship in Beijing after the release of the plan, I want to put it in four points. All in all, our major goal is to build an innovation demonstration base that could be seen as the updated version of Zhongguancun.

First, further promote all-around innovation and reform pilot measures. We have set up some new goals in this regard, with the Ministry of Commerce and the Ministry of Public Security making efforts to expand trade in service and facilitating visas, respectively. In addition, we have released new policies to attract overseas talent to China, and new measures in medical and health reform, commercial system and system concerning science and technology.

Second, expand the scope of innovation. In the next phase, the innovation demonstration bases will expand to satellite towns, and towns with special features, and even to Tianjin municipality and Hebei province from the Zhongguancun area, with an effort to integrate with the Belt and Road Initiative.

The mayor of Shenzhen was also present at today’s policy briefing.

As for innovation, Beijing and Shenzhen are the two leading cities in the country, and are now frequently interacting with each other.

For example, the Fangshan district in Beijing is launching an innovation and entrepreneurship platform.

The Huilongguan community in Changping district of Beijing used to be known as a “bedroom community” for commuters. Cooperating with Shenzhen-based Tencent Holdings Ltd, we have established a vibrant innovation and entrepreneurship community there.

Third, deepen reforms in the field of science and technology and to improve the quality of innovation and entrepreneurship.

We will mainly explore and energize innovative spirits in higher education institutions, such as the China Academy of Science, Peking University and Tsinghua University, as well as State-owned enterprises involved in high-technology.

To materialize and transform scientific and technological findings supported by the national funds, we should closely communicate with other countries, and establish some market-oriented innovation and entrepreneurship platforms outside of China, thus to serve innovative teams, talents and events that are backed by national funds.

Fourth, to push forward integration and cooperation.

We will further integrate resources for innovation within the region of Beijing, Tianjin and Hebei province. We will combine hardware conditions, such as experimental and verification platforms, and software conditions, such as standard services, to satisfy the need for innovation and promote a service industry catering to scientific research.

Meanwhile, we will attract to Beijing talent and enterprises supporting innovation and internationalize the process of innovation and entrepreneurship.

We will also strengthen cooperation with institutions from foreign countries, such as those in Silicon Valley in the US, as well as those from Israel and Germany. Some of these innovative platforms are already running in the region.

In a nutshell, we have adopted a series of measures and policies to build the innovation and entrepreneurship bases as required by the State Council, to enhance the quality and efficiency of work in this regard, and to further materialize the city’s strategic standing as the national scientific and technological center.

China Radio International:

We all know that the government has issued a bundle of measures to stabilize and promote foreign trade in recent years. Now, a new round of such measures will soon be released. What’s the reason behind this move? How will it differ from previous measures?

Qian Keming:

The Central Committee of the Communist Party of China, and the State Council always pay strong attention to the work concerning foreign trade.

The State Council has issued a series of policies to support the development of foreign trade. These policies cover various fields within foreign trade, including those to stabilize trade growth, spur imports, foster a new competitive edge in foreign trade, promote cross-border e-commerce and enhance processing trade.

Despite the world’s gloomy economic situation in 2015, China’s foreign trade volume still grabbed first place in the world, though the growth rate dipped.

Notably, the proportion of China’s exports to the world’s total grew to 13.8 percent in 2015, up 1.5 percentage points from the previous year.

However, the world climate for China’s foreign trade is more severe and complex than that in 2015. It is against this background that the State Council executive meeting passed measures to stabilize and promote foreign trade.

The International Monetary Fund and the World Trade Organization adjusted their forecast on the growth of the world economy and trade, warning that global trade is at its worst in 30 years.

In general, foreign demand is withering, and the world economic situation is relatively complex, with countries’ macro-control policies diverging from each other, making it harder to coordinate.

In the face of such a complicated situation, foreign trade volume, exports and imports all declined in the first quarter, by 11.3 percent, 9.6 percent, 13.5 percent, year-on-year, respectively. The decreases were greater than last year.

Of the 64 economies that have released their economic data, 58 reported falling import figures in the first two months of this year. Their imports constitute China’s foreign demand, or the country’s exports.

In addition, global competition is fiercer than before. Trade frictions are intensifying in the fields that China mainly supports, or where it has long enjoyed export advantages.

Trade protectionism is staging a comeback at a time of an adverse economic situation in the world, making trade frictions against China aggravating.

Domestically, costs for export enterprises keep rising. Labor costs in coastal regions are four to six times that of our neighboring countries. Therefore, industries and orders are increasingly flowing out from China.

China’s exports have dropped by $95 billion since 2013 due to the country’s industrial transfer overseas, which has brought about trade transfers, leading to continuous and drastic decreases in the processing trade. In addition, the business environment also needs to be improved. A recent survey by the Ministry of Commerce of 3,000 foreign trade enterprises shows that about 57.7 percent of the companies think the export situation this year is more serious than last year.

Qian Keming:

Everyone knows that foreign trade is an important part and driver of the national economy. Efforts to stabilize and improve foreign trade return are of great importance to maintaining smooth economic operation and realizing economic upgrade. Trade with other countries and regions, including overseas investment in China, has greatly promoted the country’s economic growth since the reform and opening-up drive was launched. The policy measures rolled out this time amid the complicated foreign trade situation have two characteristics.

First, consideration was given to stabilizing economic growth and adjusting economic structure. The two tasks are just like the two wheels of a vehicle, as smooth coordination is needed for them. China’s foreign trade is on a bumpy uphill road, with the need to reach two goals. One is to strengthen the traditional advantages in foreign trade, and the other is to develop new locomotives. Therefore, the latest policies need to attach importance to the two tasks. Regarding the traditional advantages, with the aim of addressing the common concerns of many enterprises, measures were taken to further reduce the inspection rate for exports, remove or cut fees on enterprises, and encourage banks to lend money to enterprises with good returns. The measures are expected to help reduce the burden on companies and promote their competitiveness. In terms of cultivating new drivers, steps will be taken to better support new types of businesses, develop domestic brands, and strengthen the protection of intellectual property rights.

Second, efforts are made to make policies more precise and targeted. For example, differentiated policies were introduced to boost the processing trade and support the transfer of processing trade to the country’s central and western parts. In addition to policies rolled out by the central government, localities are urged to learn from each other’s experiences and create measures according to their own needs. These new targeted and precise policies are expected to contribute to stable growth and a more reasonable foreign trade structure.

This year, the Ministry of Commerce will make great efforts to implement the State Council’s policies. To ensure the goal is met, the ministry has worked out some measures and will continue to create more supporting measures with local governments and other ministries to boost foreign trade.

Economic Daily:

Mr Chen, would you please brief us on Shenzhen city’s efforts to boost mass entrepreneurship and innovation? And how are makerspaces in the city doing after Premier Li Keqiang visited the Chaihuo Makerspace in early 2015?

Chen Biao:

I want to thank media organizations for their support for and attention to Shenzhen’s development and reform. As everyone knows, mass entrepreneurship and innovation is an important strategic initiative aimed at pressing ahead with economic restructuring, creating new drivers and boosting economic growth. The State Council executive meeting on April 20 also made some arrangements about the initiative. The city has made the following efforts based on its actual conditions.

First, great efforts are made to encourage the public’s participation in entrepreneurship and innovation. The Shenzhen municipal committee of the CPC and the municipal government have drafted many measures to promote the development of innovation and makerspaces. For example, a 300 million yuan special fund was established for makers to mobilize the public to take part.

We will promote the cultivation of creative talent, establishment of platforms and carriers for mass entrepreneurship and innovation and provide financial and social support for the construction of Makerspaces as well as financial support for enterprises of mass entrepreneurship and innovation through crowdfunding.

Second, to focus on the cultivation of the culture of mass entrepreneurship and innovation. After the 18th National Congress of the CPC, President Xi Jinping made an inspection tour to Guangdong and Shenzhen. He expressed his expectations to young entrepreneurs and urged them to step up efforts in innovation and in accumulating strength for China’s economic and society development. Just now a reporter mentioned that Premier Li Keqiang conducted market research as he visited the Makerspace in Shenzhen last year, where he also raised several expectations on mass entrepreneurship and innovation. In this regard, Shenzhen, as a city of immigrants and a majority of young people, has formed an innovative and tolerant atmosphere in the process of development. The atmosphere has enriched the heritage for an entrepreneurial culture that we are striving to create and cultivate.

Chen Biao:

Third, to focus on the construction of the foundation for mass entrepreneurship and innovation, which, as I understand it, is about human resources and talent. We widely attract batches of innovative talent from home and abroad by a number of programs, including the “Peacock Team” project, leading talent project and a youth program. Currently, the Shenzhen “Peacock Team” project consists of 83 high-quality, innovative teams from overseas. We should give full play to this kind of resource, beefing up efforts to encourage social participation, and building carriers for Makerspaces.

Fourth, to focus on organizing activities on mass entrepreneurship and innovation and building up the demonstration effect through the promotion of such activities. Many Makerspace enterprises organized a large number of activities, which had been strongly supported by the government. For example, last June, Shenzhen organized the first “Shenzhen Makerspace Week”, which gathered many experts and people interested in and enthusiastic about Makerspace. These included the founder of Maker magazine, as well as the founder for “Fabrication Laboratory”. “Makerspace Week” garnered the participation of representatives and institutions from 35 countries and regions, with 265,000 people taking part, resulting in a prominent effect. Last October, Shenzhen was a branch venue for the national entrepreneurship and innovation week with the participation of hundreds of thousands of people. Enterprises in Shenzhen also joined activities at the main venue as major participants. Also, last December, we organized activities to “discover stars for entrepreneurship and innovation”.

Five, to further focus on creation of a sound environment of entrepreneurship and innovation. Director Xiu just now mentioned that grassroots innovation is an important part for mass entrepreneurship and innovation. We need to further mobilize social participation and create a sound environment, together with related institutions to promote the synergetic development of entrepreneurship and innovation.

Just now a reporter referred to Makerspace. Since Premier Li Keqiang gave on-site instruction last year, they have further promoted it in accordance with the Premier’s expectations and the rule of entrepreneurship and innovation. One is to extend the Makerspace activity to schools by establishing cooperation with over 40 primary and secondary schools in Shenzhen and equipping schools with related hardware and software, including 3D printers. It’s also providing specific teaching plans, and mobilizing the school students’ enthusiasm for participating in the activity.

We also held a series of maker exchange activities. There were more than 70 exchange activities last year, including those with different overseas salons and makers’ workshops.

Most important, through the incubator of makerspaces, we can cultivate many projects. Last year, there were 120 incubator projects, and four of them have succeeded.

China National Radio:

You have just mentioned that various rising costs at home have led to the transfer of industries and orders overseas and continuous decrease in processing exports and imports. Will you please elaborate on the new measures to support the processing trade?

Zhang Ji:

Processing trade is an important part of our foreign trade and open economy. With 30 years of development, processing trade has played a very important role in establishing our trade power, in solving the employment issue and our participation in division of labor of the international industrial chain. Processing trade is a trade policy from a trade perspective, a supervisory one in the bonded areas from a supervision perspective, an industrial one from its feature of participating in international industry and one solving the employment of migrant workers. With upgrades in such processing trade businesses, it will play a vital role in solving the employment issue of university graduates. Currently the processing trade hires over 40 million people, and it is an amazing contribution to employment.

And its contribution has helped stabilize the development of the processing trade and entire trade of the country and also helped to ease the employment pressure.

But we must keep in mind that processing trade has its special feature as it undertakes the international industrial transfer. It was first transferred to Asia from Europe and America, and then to the Chinese mainland from Taiwan, Hong Kong, South Korea and Singapore. We can see from this process that processing trade only seeks to transfer to places with lower costs and leaves once the costs begin to rise. So we can see that foreign capital has slowed its pace in investment in China’s manufacturing and sped up its pace in transferring to neighboring countries, Africa and the United States. Neighboring countries, America and Europe are striving to lure foreign investment and taking over international industries. It includes not only transfer of foreign invested industries, but also national and private enterprises. So now we are facing a different situation.

One feature of the processing trade is that once it transfers, it leaves very quickly. So if its order leaves fast, it will greatly affect the stable growth of our trade. In the first quarter of 2016, the processing trade exports dropped 15.9 percent. So you can see processing trade is not only about the trade data. It plays a vital role in social stability, employment, our active involvement in the international industrial chain and learning from experience. So the CPC Central Committee and State Council both attach great importance to the development of the processing trade.

Zhang Ji:

Following the issue of the processing trade regulations, the State Council executive meeting on April 20 approved measures to promote stabilization of trade and increase support for the processing trade. It reflected its special importance at this special stage. Since the processing trade seeks lower costs and the cost of factors of production is rising at home, we need to take some special measures, which should abide by the rules of the World Trade Organization through strictly controlling environmental standards and market access. Such transfer includes both the direct overseas investment attracted by the central and western regions and those taken over from the eastern regions of China.

Now the processing trade in eastern China is undergoing transformation and upgrades, with positive results. Some industries are also moving to neighboring areas. We hope that this part can also move to the central and western regions and the transfer to overseas countries can be reduced or slowed. Therefore, there must be a differentiated policy on leading processing trade transfers to the central and western regions. The executive meeting of the State Council on April 20 clearly stated the intent to study related differentiated policies and also put forward specific directions and requirements, such as, the lands cleared out by the withdrawal of processing trade enterprises in eastern regions can be used for business, tourism and retirement homes upon approval; concerted efforts should be formed by implementing comprehensive measures and making use of related fiscal, land and financial policies to provide powerful support for the processing trade’s transfer to central and western China, and encourage and support the central and western regions to absorb investments through promotion, especially targeted investment from the eastern regions. The meeting also required strengthening reform efforts, canceling administrative approval for processing trade enterprises across the country and improving related regulatory mechanisms to further release market vitality and providing more favorable conditions for innovative development of the processing trade.

The Ministry of Commerce will work with related departments and the central and western regions to promote the stability of foreign trade and create a favorable environment.

China News Service:

My question is for Mr. Lin. Recently, an institution in the United State released an annual report on global entrepreneurship. It showed that China took third place among the 62 monitored countries in the rankings of governmental policy’s impact on entrepreneurship. What does the NDRC think of it? What measures will the central government take this year to promote entrepreneurship?

Lin Nianxiu:

We did notice the report published by the Global Entrepreneurship Monitor. I think the organization’s assessment is objective and also a recognition of the Chinese government’s efforts on mass entrepreneurship and innovation. I remember that during a policy briefing last year, I said that China had entered into an “era of entrepreneurship,” which means that entrepreneurship and innovation has become the theme of our times. So I think the foreign organization’s assessment confirmed my assessment.

We all have the same feeling that in the last two years, the Chinese government paid great attention to mass entrepreneurship and innovation. We can see that this year and last year’s government work reports both highlighted the important role of mass entrepreneurship and innovation. In the last two years, the central government has strengthened the top-level design of mass entrepreneurship and innovation and released a series of significant plans. According to early estimates, since last year, the State Council has issued about 20 documents. This is unprecedented in terms of the number of documents.

In the last two years, local governments have also carried out a series of measures regarding mass entrepreneurship and innovation, which is important to implement policies regarding mass entrepreneurship and innovation. At the same time, we also feel that currently, society is enthusiastic about entrepreneurship and innovation as never before. Such a situation is the result of joint efforts from all sectors, including you the media. So I want to take this opportunity to thank you for your attention and support to mass entrepreneurship and innovation. I do think that you have made tremendous contributions to create a nice atmosphere for mass entrepreneurship and innovation.

Lin Nianxiu:

During the two years’ work, mass entrepreneurship and innovation did play an important role in stabilizing economic growth and restructuring as well as increasing jobs. Now I am going to summarize its effects in the following five aspects:

First, the idea of mass entrepreneurship and innovate has rooted deeply in people’s minds and the group of makers continues to grow. With all kinds of support polices on entrepreneurship and innovation, the potential of scientific researchers, college students, migrant workers who return home starting their businesses, and returned overseas students have been motivated. According to our sample survey, in 2015, more than 50 percent of scientific researchers were willing to start a business. This figure almost doubled compared that of 2013. Particularly, some enterprises, colleges, and scientific research organizations have proactively become involved in mass entrepreneurship and innovation.

Second, the number of market players witnessed a dramatic increase, and economic structure continued to be optimized. In terms of total numbers, in 2015, more than 14 million enterprises got registered, a more than 14 percent year-on-year increase. In the first quarter of this year, about 3 million enterprises got registered, a 10.7 percent year-on-year growth. In terms of structure, Strategic emerging industries and modern service industries have witnessed continuous development, and the quality of entrepreneurship and innovation is improving.

Third, investment in entrepreneurship is increasing and becomes the new highlight of social investment. With government’s guidance and support, angel investments and entrepreneurial investments in China saw a fast development. By the end of last year, there were about 3,000 angel investment and entrepreneurial investment organizations, managing more than one trillion yuan. What does this mean? It means that China has become the largest entrepreneurial investment place, second only to the United States.

Lin Nianxiu:

Fourth, the policy system for mass entrepreneurship and innovation has just been established, and the ecological environment for which is being optimized. The two leaders both mentioned the sound environment, which is very important.

Reform of the business system is steadily being promoted, which opens the door to mass entrepreneurship and innovation. We started to use one business license with a unified social credit code from Oct 1, 2015. The registration time for a newly set up enterprise was shortened from the average 26 days to only three days. We also started structural tax reductions and general fees deduction, slashing 350 billion yuan of tax burdens for small and micro businesses and innovative businesses. By the end of 2015, there were altogether 2,300 makerspaces and over 2500 scientific and technological enterprise incubators. So we can see that a good environment can bring a large amount of platforms and products of mass entrepreneurship and innovation.

Fifth, mass entrepreneurship and innovation creates many opportunities and has a positive effect on employment. Increase of employment brought about by mass entrepreneurship and innovation greatly averted the impact of slowing economic growth on employment.

Last year, newly emerged market players hired over 20 million people. Such a large scale of employment mainly depends on mass entrepreneurship and innovation. Meanwhile, entrepreneurship drives the transformation of employment structure and improves the employment quality.

Lin Nianxiu:

If we say last year we made a good start in mass entrepreneurship and innovation, this year, we will carry out measures to stoke the fires of innovation, implement detailed policies, set up successful examples as models, put the innovation activities into practice and activate mass entrepreneurship and innovation nationwide. Detailed measures can be concluded in the following five aspects:

First, overcome obstacles in policy implementation and explore ways to innovate systems, such as promoting the union of investment and credit loans, perfecting the law enforcement mechanism in intellectual property rights protection and e-commerce industries. We will technology staffers to start their own businesses, and perfect the entrepreneurship and innovation mechanism of State-owned enterprises.

Second, build a batch of special demonstration bases to promote mass entrepreneurship and innovation.

Third, support the building of a batch of platforms for mass entrepreneurship and innovation. We will make full use of government funds such as the national funds for emerging industries, development funds for small and medium-sized enterprises and the funds for transformation of scientific research findings into practical application. The three kinds of government funds are helpful for mass entrepreneurship and innovation and setting up supportive platforms. We will build a batch of makerspaces in strategic emerging industries and modern service industries and create several platforms for Internet plus mass entrepreneurship and innovation.

Fourth, attract a group of innovation talent. We will help solve difficulties for those starting a business. We will expand education reform in universities, and train useful talent in rural areas and establish permanent residence regulations for foreigners to attract more innovative talent.

Fifth, hold promotion activities for mass entrepreneurship and innovation and help the public understand and support mass entrepreneurship and innovation. This job needs your help. We will release the mass entrepreneurship and innovation white paper of 2015 soon, and I suggest the media friends can take a careful look at it. The white paper will have various content, detailed materials and great value. The official website of the NDRC has set up a mass entrepreneurship and innovation information service platform and we will improve its related functions later.

This year, the NDRC will work with other related departments and local governments to organize the national mass entrepreneurship and innovation week of 2016, and we hope our media friends will continue to follow a series activities of this weekly event. We plan to warm up for these activities in May and try our best to push mass entrepreneurship and innovation to a new high.

Xi Yanchun:

That’s all for today’s policy briefing. Thank you all.