Report on the Work of the Government
-Delivered at the Third Session of the 13th Guangdong Provincial People's Congress on January 14, 2020
MA Xingrui, Governor of Guangdong Province
*The English version of this Report is for reference only. Click to download the full text of government work report.
On behalf of the Guangdong Provincial People's Government, I will now report to you on the work of the government for your deliberation and approval. I also invite comments from the members of the Guangdong Provincial Committee of the Chinese People's Political Consultative Conference (CPPCC) and other guests present at the session today.
I. Review of Work in 2019
The year 2019 marked the 70th anniversary of the founding of the People’s Republic of China. It was also a crucial year for us as we endeavor to achieve the building of a moderately prosperous society in all respects. Under the strong leadership of the Party Central Committee with Comrade Xi Jinping at its core, together with people across the country, we launched mass activities to celebrate the 70th anniversary of the founding of the People’s Republic of China, which greatly aroused confidence and patriotism of all our people and strengthened the cohesiveness of our province to further press ahead. The Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area and the Guidelines on Supporting Shenzhen in Building a Pilot Demonstration Area of Socialism with Chinese Characteristics were issued by the Party Central Committee and the State Council in 2019, which are both important strategic decisions made by General Secretary Xi Jinping and the Party Central Committee, bringing new historical missions and significant opportunities to Guangdong’s development. Over the past year, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we fully implemented the guiding principles of General Secretary Xi Jinping’s important remarks and instructions on Guangdong, conscientiously acted on all major policies and plans made by the Party Central Committee and the State Council. Following the work requirements of the CPC Provincial Committee, with the oversight of and support from the Provincial People's Congress and its Standing Committee, and the Provincial Committee of the Chinese People's Political Consultative Conference (CPPCC), we followed the general principle of pursuing progress while ensuring stability, and continue to apply the new development philosophy. We fully seized the important opportunity of developing Guangdong-Hong Kong-Macao Greater Bay Area and supporting Shenzhen in building a pilot demonstration area of socialism with Chinese characteristics. We implemented the "1+1+9" working plan and made coordinated efforts to maintain stable growth, advance reform, make structural adjustments, improve living standards, guard against risks, and ensure stability. As a result, we ran our own affairs well, made significant progress in building a moderately prosperous society in all aspects, and made new ground in being “a forerunner of the country in four aspects of economic restructuring, scientific innovation, opening-up and better governance” and “two important windows of China”.
The following are the highlights of our work over the past year:
First, we fully implemented the macro regulation policies and the Six-Sphere Stability assignment of the central government including employment, finance, foreign trade, foreign capital, investment and expectations, vigorously responded to the complicated environment where domestic and international risks and challenges were looming large, and strove to sustain a healthy economic and social development in the province. We prioritized stability on top of the agenda, took timely measures to confront the downward pressure hung over the economy, effectively and appropriately handled economic and trade frictions between China and the United States, and kept major economic indicators within an appropriate range. Guangdong’s Gross Domestic Product (GDP) topped 10.77 trillion yuan, with a year-on-year growth of 6.2%, highlighted by Foshan becoming the third city in the province whose economic aggregate ascended to the 1-trillion-yuan level. The industrial mix of the primary, secondary, and tertiary industries was adjusted to 4.0: 40.5: 55.5. New economy accounted for 25.3% of the province’s GDP. The energy consumption per unit of GDP is estimated to drop by 3.7%. The general public budget revenue increased by 4.5% to 1.27 trillion yuan. We newly slashed more than 300 billion yuan as a move to implement the policy on tax and fee reduction. We supported rapid investment growth, and continued to optimize the structure. Fixed asset investment grew by 11.1% to nearly 4 trillion yuan, in which the investment in infrastructure and industrial technical transformation rose by 22.3% and 12.9%, respectively. We introduced 29 measures to boost consumption. As such, the total retail sales of consumer goods registered 4.27 trillion yuan, up by 8%; online retail sales and package handling capacity grew by 19.3% and 29.7%, respectively; and consumer prices gained 3.4%. We worked at full stretch to stabilize foreign trade and foreign investment. The total amount of the import and export reached 7.14 trillion yuan, down by 0.2%, with the export registering 4.34 trillion yuan, up by 1.6%. The actual use of foreign investment is estimated to be 150 billion yuan, up by 3.5%. The financial sector witnessed higher quality and efficiency. For financial institutions, the balance of deposits in domestic and foreign currencies and that of loans grew by 11.7% and 15.7% respectively. The added value of the financial sector stood at 888.1 billion yuan, up by 9.3%. Special efforts were made to increase market vitality, and 2.21 million new market entities were registered, adding up to more than 12 million in total, with 13 on the Fortune Global 500 list. We put into practice the Nine Policies on Promoting Employment, which helped to create 1.4 million urban jobs, and contributed to sustaining a stable employment situation with the surveyed urban unemployment rate within 5% and the registered urban unemployment rate of 2.25%. The disposable income per capita for residents reached 39,000 yuan, up by 8.9%.
Second, by giving full play to the growth driving effects of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and Shenzhen’s endeavor to build a pilot demonstration area of socialism with Chinese characteristics, we made significant strides in the development of the former and enabled a solid progress in the latter. We fully implemented the important decisions made by the Party Central Committee and formulated detailed and concrete measures and actions. We unveiled a guiding document and a Three-Year Action Plan on implementing the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area. With the GBA connectivity initiative in place, we proactively promoted the alignment of rules and regulations across the area. We provided preferential income tax policies for overseas high-quality talents and talents in urgent demand. The Guangdong-Macao Cooperation and Development Fund with the first batch of investment of 20 billion yuan operated smoothly. Vocational qualifications recognition in industries of architecture, tourism and health care made headway. We made every effort in developing the GBA into an international scientific, technological and innovation center. Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone was approved to pilot new preferential policies. Universities and scientific research institutions in Hong Kong and Macao SARs were supported to participate in Guangdong’s science and technology cooperation programs, practicing the cross-border use of Guangdong provincial research fund in Hong Kong and Macao for the first time. Infrastructure connectivity was promoted at an accelerated pace. The operation and management of the Hong Kong-Zhuhai-Macao Bridge continued to improve. The Tourists Inspection Building at Hengqin Port was completed. Renovation of Huanggang Port of Entry was started. We also made new achievements in the cooperation to improve people’s livelihood. Hong Kong and Macao start-uppers were included in the entrepreneurship subsidy program and 13 youth innovation and entrepreneurship bases were established jointly with Hong Kong and Macao. Construction of the Guangzhou campus of Hong Kong University of Science and Technology commenced. We successfully organized a number of major events including the first GBA Media Summit, the first GBA culture and art festival, and the Overseas Chinese GBA Conference. We introduced major measures of supporting Shenzhen’s endeavor to build a pilot demonstration area of socialism with Chinese characteristics and provided equal support for Guangzhou to press ahead with its four-thronged urban rejuvenation initiative to bring new vigor to this historical city with more leeway given to both cities for further reform and development. Guangzhou and Shenzhen’s roles as core engines were therefore further strengthened.
Third, we furthered the supply-side structural reform, unswervingly implemented the strategy of innovation-driven development, and realized an accelerated transformation and upgrading of the real economy with the manufacturing industry as the mainstay. We furthered the implementation of the Twelve Policies on Science and Technology Innovations and promoted self-innovation for high-quality development. We continued to support efforts in basic research and the application-oriented basic research. We exerted concerted efforts to address technologies and fields subject to other countries' technology control, and 4 batches of R&D projects in 9 major areas were launched. In 2019, the province’s expenditure on R&D is estimated to exceed 280 billion yuan, accounting for 2.8% of the regional GDP. We stayed leading in the nation in terms of the regional comprehensive innovation capacity. Our volumes of valid invention patents and PCT applications continued to rank first in China. We were awarded with 50 National Awards in Science and Technology and 9 Golden Prizes of China Patent Award. We completed the blueprint of ten provincial-level laboratories in 3 batches, obtained the approval for building the first National Key TCM Laboratory. Universities and colleges achieved substantial progress in line with the “Double First-Class” initiative. The number of disciplines qualified for ESI Top 1% in the province reached 77. We introduced the eighth batch of 44 innovation and start-up teams. Up till 2019, 89 academicians from both the Academy of Sciences and the Academy of Engineering worked full-time in Guangdong. The province’s Conference on Promoting Quality Development of Manufacturing Industries received high-level support from the provincial leadership, delivered 19 pieces of advice on quality development of the industry and pushed for the implementation of the Six Major Projects of High-quality Development to nurture industrial clusters with high competitiveness in the international market. The added value in advanced manufacturing and high-tech manufacturing industries accounted for 56.3% and 32% respectively in the industries above designated size. The number of 4K TVs produced in Guangdong and that of 5G base stations both ranked first in the country. The new projects of the LG OLED and CanSemi (12 inch wafer) came into operation. As the province continued to strengthen its innovation capacity, the number of national high and new tech companies exceeded 50,000, and quite a number of provincial manufacturing innovation centers, technology innovation centers and new-type R&D institutes were newly established. 40% of the industrial enterprises above designated size in the province had their own R&D institutions. We furthered the province’s industrial technical renovation in line with the Three-year Action Plan for ITR, and promoted the upgrade of 9,000 businesses from SME to enterprises above designated size. We worked to promote an integrated development of advanced manufacturing and modern service sector. The added value of the province’s modern service industry is estimated to contribute to 63.4% of that in the whole service industry.
Fourth, we unswervingly insisted on opening up, devoted greater efforts in exploring diversified markets and introducing major foreign investment projects, thereby driving the open economy to gain new strengths. We worked ceaselessly to open up on all fronts, to establish a trade and investment rules system in line with international standard and to make the door of opening-up wider. We introduced 32 measures to encourage the high-quality and stable development of foreign trade, and explored international markets through various channels. As a result, the import and export volume with the EU and ASEAN witnessed a respective growth of 11.1% and 6.9%. We accelerated the pace in cultivating new forms of foreign trade, as evidenced by the 45.8% increase in the import and export volume of cross-border e-commerce, and the successful launch of the pilot export program for second-hand cars. We strictly followed the foreign investment negative list, and the Ten Policies and Measures for Foreign Investment. We further slashed restrictions on market access, and created a more attractive business environment in such aspects as guaranteeing land use and providing talent-oriented supports. The quantity of foreign investment projects with an actual committed investment of over 100 million U.S. dollars is estimated to grow by 19.4%. BASF Zhanjiang Verbund Project commenced construction. With a total investment exceeding 10 billion U.S. dollars, it became China’s first large-scale integrated petrochemical project solely owned by foreign investors, and Guangdong’s largest single foreign investment project. Major foreign investment projects progressed smoothly, such as ExxonMobil Huizhou, and CNOOC-Shell (Phase III). The GE offshore wind power manufacturing base started construction. A negative list was designed for cross-border service trade with Hong Kong and Macao in Guangdong Pilot Free Trade Zone. We took forward the pilot reform of business registration confirmation system. The province was approved to replicate the free trade account system. Further, we cumulatively spread 38 pieces of replicable experience nationwide for advancing innovation-driven reform. We devotedly participated in the Belt and Road Initiative, and witnessed a 6.3% increase in the import and export with en-route countries. The network of international sister cities basically achieved the full coverage of major en-route countries. China-Europe Railway Express achieved routine operation of 9 block trains on a weekly basis, and saw a 31.2% increase in commodity exports. We successfully held the Understanding China Guangzhou Conference, Imperial Springs International Forum, and China Marine Economy Expo. Our cooperation with Heilongjiang Province in targeted fields was enhanced in an all-around manner. New fruits were yielded in cooperation in fields including economy and trade, and tourism in the Pan Pearl River Delta.