Page 18 - REPORT ON THE WORK OF THE GOVERNMENT

To accelerate the pace of equipment upgrading and technological
transformation of enterprises, the preferential policy on accelerated depreciation of

fixed assets was extended to cover the entire manufacturing sector.
We sped up the development of emerging industries like high-end equipment,
biomedicine, optoelectronic information, new-energy vehicles, photovoltaic power,
and wind power. The digital economy was further integrated with the real

economy. Continued efforts were made to provide faster broadband speeds and
lower internet rates, and Internet Plus initiatives were boosted. The number of
mobile internet subscriptions increased to 1.45 billion. We supported the
development of the Industrial Internet and vigorously promoted digital and smart

manufacturing. The number of innovative SMEs that use special and sophisticated
technologies to produce novel and unique products exceeded 70,000.
We promoted the sound and sustainable development of the platform
economy and fully leveraged its role in boosting employment and business
startups, expanding the consumer market, and creating new production modes.

Producer services such as R&D and design, modern logistics, and inspection,
testing, and certification registered further growth. Across-the-board quality
management and national quality infrastructure were improved. Chinese products
are now of a higher quality and more competitive.

5. We expanded effective domestic demand and promoted coordinated regional
development and new urbanization.
To create a new pattern of development, we fully leveraged China’s
super-sized market and carried out the strategy of expanding domestic demand to
foster more growth engines.

We strived to expand consumption and effective investment.
Before the outbreak of Covid-19, consumption had become the primary driver
of China’s economic growth. In the face of insufficient and even shrinking demand,

we acted to secure a swift recovery in consumption.
We promoted personal income growth through various avenues and saw the
earnings of middle- and low-income groups rise. Spending on automobiles, home
appliances, and other big-ticket items was supported. The number of cars in use in
China topped 300 million, an increase of 46.7 percent compared to five years ago.

We vigorously promoted both online and offline consumption, raising the
share of online sales for physical goods from 15.8 percent to 27.2 percent of total
retail sales of consumer goods. Businesses serving residents’ daily needs flourished

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