Page 3 - REPORT ON THE WORK OF THE GOVERNMENT

significantly increased transfer payments to local governments.
We provided guidance to financial institutions on increasing credit supply and

lowering financing costs. Average interest rates on new enterprise loans fell to the
lowest level on record, and time-limited measures were taken to defer principal
and interest repayments on loans to businesses severely affected by Covid-19, such
as micro, small, and medium enterprises (MSMEs), self-employed individuals, and

enterprises in catering, tourism, and freight transportation, and to lower interest
rates on inclusive loans to micro and small businesses. We injected fresh vitality
into the market through reform. Many MSMEs and self-employed individuals in
various sectors have benefited as a result.

To address lack of effective demand, we adopted a combination of measures to
expand investment, stimulate consumption, and stabilize foreign trade.
Consumer spending was hit hard last year, and investment also suffered. In
response, we launched several major projects set out in the 14th Five-Year Plan
ahead of schedule, expedited the processes of issuing and utilizing local

government special-purpose bonds, made better use of carryover quotas for
special-purpose bonds in accordance with the law, and issued development and
policy-backed financial instruments in two batches totaling 740 billion yuan to
replenish the capital for major projects.

We used targeted re-lending, loan interest subsidies, and other policies to
support key sectors in upgrading equipment. To speed up project screening,
different government departments established joint offices and a
commitment-based approval system was adopted for local governments.

In 2022, investments in infrastructure and the manufacturing sector increased
by 9.4 percent and 9.1 percent respectively, while fixed-asset investment increased
by 5.1 percent. This has, to some degree, offset the contraction in consumption. We
fostered new modes and new forms of consumer spending and adopted measures

including reductions and exemptions on vehicle purchase tax to boost spending on
automobiles. As a result, sales of new-energy vehicles surged by 93.4 percent.
Initiatives were launched to stimulate spending on green and smart home
appliances and green building materials in rural areas. Thanks to these efforts, we
kept total retail sales of consumer products generally stable.

We adopted financial measures to meet people’s demand for buying their first
home or improving their housing situation and took concrete steps to ensure that
overdue housing projects were completed and delivered to meet people’s basic

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