Speakers:

Lian Weiliang, vice chairman of the National Development and Reform Commission; 

Tian Yulong, chief engineer of the Ministry of Industry and Information Technology; 

Liu Xiaoming, vice minister of transport; 

Wang Bingnan, vice minister of commerce; 

Li Bin, vice minister of the National Health Commission; 

Gan Lin, vice minister of the State Administration for Market Regulation.

Chairperson:

Xi Yanchun, spokesperson of the State Council Information Office

Date:

Feb. 3, 2020

Xi Yanchun:

Ladies and gentlemen, friends from the media, good morning. Welcome to the press conference on the provision of key medical supplies and daily necessities for the prevention and control of the novel coronavirus pneumonia outbreak. We have invited Mr. Lian Weiliang, vice chairman of the National Development and Reform Commission; Mr. Tian Yulong, chief engineer of the Ministry of Industry and Information Technology; Mr. Liu Xiaoming, vice minister of transport; Mr. Wang Bingnan, vice minister of commerce; Mr. Li Bin, vice minister of the National Health Commission; Ms. Gan Lin, vice minister of the State Administration for Market Regulation.

First, I'll give the floor to Mr. Lian.

Lian Weiliang:

Ladies and gentlemen, friends from the media, good morning.

There has been wide-ranging attention on the novel coronavirus pneumonia outbreak. The CPC Central Committee and the State Council places great importance on the prevention and control of the epidemic and the livelihood of the people living under its shadow. General Secretary Xi Jinping chaired a meeting of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee for an investigation into the situation on the first day of the Lunar New Year and gave major instructions on the work needed to deal with the outbreak. He called for firm confidence, unity in times of difficulty, scientific prevention and control, and precise measures. He also emphasized the need to guarantee market supply, ensure the supply of various materials in Hubei province and Wuhan city, safeguarding the normal basic life of the general public, and winning the battle of epidemic prevention and control. Premier Li Keqiang also chaired the meetings of the central leading group on responding to the novel coronavirus pneumonia outbreak, and made systematic plans for inter-agency prevention and control as well as for the supply of various materials. On Feb. 1, he paid a visit to a platform for the provision of medical supplies.

After the outbreak of the epidemic, especially since the implementation of more stringent prevention and control measures by Wuhan on Jan. 23, logistics and supplies were affected. People placed a lot of attention on securing a constant supply of daily necessities, and there were also some concerns. There have also been temporary increases in the demand for some daily necessities and a notable rise in prices. In response to the situation, the central leading group set up an inter-agency task force for joint and quick coordination. They went all out in their efforts to increase the supply of daily necessities, set up green channels for the transportation of food, vegetables, medical materials and other necessities, and spared no efforts in guaranteeing the supply of daily necessities in priority regions including Wuhan. In the spirit of solidarity and mutual assistance, various localities and relevant enterprises also provided selfless support in supplying daily necessities to the people in Hubei province and Wuhan city.

Through the concerted efforts of various sides, the aggregate supply of daily necessities in Wuhan city and Hubei province is secure, and after the temporary increases, prices are now coming down. The supply to other regions of the country is also adequate and secure. That being said, problems such as a lack of coordination have also emerged and require timely resolution. For example, the supply of different types of fresh vegetables is not varied enough, the stocks of certain daily necessities are not replenished in a timely manner due to slow logistics, and the transportation of certain materials are not optimal because of epidemic control requirements. Enterprises that produce and supply daily necessities also face labor shortage and problems in their industrial chain upon resumption of production. We are now coordinating our efforts to solve these problems.

Going forward, the related departments and local governments will fully implement the decisions and plans of the CPC Central Committee and the State Council, and will introduce more effective measures to ensure the smooth supply of daily necessities.

First, further increasing supplies. For example, we will work with the vegetable-producing provinces, such as Shandong, Jiangsu, Anhui and Guangxi, to better coordinate with Hubei province so as to increase the supply of fresh vegetables. We will also increase the supply of rice, flour and edible oil by coordinating with major companies, such as the China National Cereals, Oils and Foodstuffs Corporation, the China Grain Reserves Corporation and the China National Salt Industry Corporation. We will also increase the supply of frozen food by coordinating with the major production companies. We will also make arrangements to deliver frozen pork from the central reserves into the market. 

Second, resuming production in an orderly way while strictly implementing epidemic prevention and control measures. We will ensure that companies involved in epidemic prevention and control and those that impact the national economy and people's livelihood will resume production as soon as possible. This would include companies in the sectors of energy supply, transportation, logistics, city operations, medical materials production and those supplying daily necessities. We will also push for the resumption of major projects, major engineering construction and the operations of companies with the right conditions as quickly as possible.

Third, keeping logistics and transportation unimpeded. In order to ensure that aid materials can be sent to Hubei province successfully and to reduce the risk of cross-infection, transport authorities have set up road transport transit service stations in five existing logistics parks in Hubei province. This has been done so that cargo can be unloaded more efficiently and vehicles can return as soon as possible. We will also enhance the building of green transportation channels in Hubei province so as to improve the efficiency of transportation as well as the redistribution of materials. We will give priority to vehicles transporting medical materials and daily necessities and they will not be required to stop, undergo checks or pay tolls.

Fourth, guaranteeing the factors for production. We will help address the difficulties that companies may face during their resumption of production, such as challenges related to labor supply, energy supplies, as well as financing and industrial chains. We will help Hubei province deal with the problems of resources, transportation and dispatch so as to guarantee safe and stable supplies of coal, power, petroleum and natural gas.  

Fifth, enhancing monitoring. We will check the supplies of daily necessities in various areas and will closely monitor the daily levels of consumption of vegetables and food in Hubei province as well as in other major regions to address any potential supply problems on a timely basis.

Sixth, improving our reserves. We will focus on our reserves of winter and spring vegetables and their delivery to major northern cities. We will also implement and improve the government's temporary reserves by following the principle of storing surplus supplies for future use and using our reserves only when necessary. This will enable us to ensure the supply of daily necessities to the greatest extent possible.  

The provision of daily necessities is of crucial importance to people's daily life as well as prevention and control of the epidemic. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the inter-agency task force for the supply of daily necessities led by the National Development and Reform Commission and the Ministry of Commerce will work with the relevant departments and local governments to ensure the supply of daily necessities and win the battle against the epidemic. Thank you.

Xi Yanchun:

Thank you Mr. Lian. Next, I'll now give the floor to Mr. Tian Yulong.

Tian Yulong:

Ladies and gentlemen, friends from the media, good morning. The spread of pneumonia caused by the novel coronavirus (2019-nCoV) has been severely affecting people's health and threatening their lives. Since the epidemic's outbreak, both the CPC Central Committee and the State Council have attached great importance to it. General Secretary Xi Jinping is personally commanding and deploying the prevention and containment efforts, stressing that these are currently the top priority.

In order to act as soon as possible in accordance with the deployment of prevention and containment, we have mobilized resources in every province and city, as well as all industries and sectors, to comprehensively secure emergency medical supplies, especially those urgently needed in Wuhan and Hubei. Under the leadership of the leading group of the CPC Central Committee on the prevention and control of the novel coronavirus outbreak, the State Council medical supplies group has been established out of the joint prevention and control mechanism. The Ministry of Industry and Information Technology has taken the initiative in securing the production of key medical supplies, including medical protective clothing, goggles, eye protection, face masks, disinfection and sterilization supplies, negative pressure ambulances, as well as infrared thermometers. We have also been coordinating the urgently needed materials. All the group members are working in a coordinated manner and are taking their own responsibilities. The industry and information technology systems of every province and city have been connected to jointly step-up efforts in ensuring medical supplies focusing on Wuhan and Hubei. 

As the Spring Festival took place during these more than 10 days of working on the emergency medical supplies, most of the medical material suppliers and logistics systems were on vacation. As such, it has been very difficult to resume production during this period. The Ministry of Industry and Information Technology, with help from relevant parties, has adopted four measures to effectively secure the supply of medical materials.

First, we have been organizing relevant companies to resume and further expand production as soon as possible. Since Jan. 21, the Ministry of Industry and Information Technology has sent seven successive public telegrams to every province and city, specifically deploying material supplies regarding the epidemic prevention and control. We are urging medical material suppliers to resume production as soon as possible, and are strengthening the integrated management and deployment of major medical supplies. 

Second, we have sent commissioners relevant companies to strengthen the coordination and supervision of production. In order to implement the requirements of the State Council, task forces led by 30 senior government officials have been sent to major medical supplies companies to work with local systems concerning industry and information technology, as well as the administration of medical products. We have been helping these companies coordinate and resolve issues concerning raw materials and logistics, so as to effectively increase valid supplies. 

Third, we have established a national dispatch platform for major medical supplies. In accordance with the CPC Central Committee's guidance on improving the coordination of medical supplies, the platform has been established to collect, analyze and monitor statistics on the production capacity, output, inventory and relevant logistics of medical supplies, thereby organizing dispatches accordingly. The effectiveness of the dispatch of the supplies has been improved through the use of information technology. 

Fourth, we have been actively seeking international supplies of medical materials. In order to make up for the domestic shortage of urgently needed materials, we have been organizing international procurement under the support of relevant government bodies. Many companies got a large number of urgently needed medical supplies from other countries through procurement or donation. In the meantime, the Ministry of Industry and Information Technology has been working with the National Health Commission and the National Medical Products Administration to accelerate the mutual recognition between foreign and Chinese standards of medical supplies, so that the exported medical products under EU, Japanese and U.S. standards can also be applied to some fields in China.

Premier Li Keqiang visited the Ministry of Industry and Information Technology and made an inspection on Feb. 1, putting forward specific requirements for our work in securing major medical supplies. Li stressed that now is a critical moment for the prevention and containment of the epidemic, and that securing key medical supplies in Wuhan and Hubei remained the top priority. As such, Li noted that we should continue to coordinate the supply of urgently needed materials, and every relevant company should work at full capacity and spare no effort to ensure the quantity and quality of the medical supplies.

Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, as well as the deployment of the leading group of the CPC Central Committee on the prevention and control of the novel coronavirus outbreak, and the State Council's joint prevention and control mechanism, the Ministry of Industry and Information Technology will work with our member organizations as well as every province and city to effectively organize and secure the production of major medical supplies, actively mobilizing all sectors of society to resume, expand, and improve production capacity. We are confident that we will be able to successfully complete the task of securing medical supplies; we will be able to win the fight against the epidemic; and we will be able to protect people's lives and health. That's all for my introduction. Thank you.

Xi Yanchun:

Thank you, Mr. Tian. Now the floor is open for questions. Please identify your news outlet before asking questions. Thank you.

Lianhe Zaobao:

I have two questions. First, there are some reports saying that materials in Hubei province - especially medical supplies at the frontline - are in serious shortage. Some people have reflected that because of a shortage of test reagents, a number of suspected novel coronavirus cases cannot be confirmed at the earliest possible time. Could you give us more information about the supply of materials at the frontline? Is the situation serious? Are the material access channels smooth? Second, we are all being told to wear face masks, but we have heard that all over the country it is difficult to purchase masks. Could you tell us when this issue will be resolved? Thank you.

Tian Yulong:

Thank you for your questions. Regarding your first question, generally speaking, the situation of material shortages in Hubei has been significantly alleviated, and we define the current stage as "tightly balanced." Just now, I spoke about the supply of materials; we are resuming work and production, but it will still take some time to restore full production capacity.

Here is some data for you. By 24:00 on Feb. 2, we have coordinated domestic medical supply companies to send a total of 154,500 protective suits to Hubei province, of which 131,200 have arrived. In addition, 133,600 N95 face masks have been delivered. According to new division of labor, the National Development and Reform Commission will guide the overall work regarding face masks, and we will actively cooperate with them. Up to now, 130,000 N95 face masks have arrived. As for the question of face masks, Mr. Lian will give you more information later. So far, 82 fully automatic infrared monitors have been sent to Hubei, of which 62 have arrived.

What I want to stress here is that the production capacity in Hubei province has also recovered very quickly, especially concerning medical supplies such as protective suits and goggles. Since Hubei is an important production base for medical supplies in China, the recovery of capacity there will definitely alleviate the shortage of supplies on the frontline. However, the supply of protective suits and N95 face masks are still in a "tightly balanced" stage. Under the deployment of the State Council, the supply connection between Hubei and other provincial regions will remain close and precise.

Regarding your question about test reagents, the nucleic acid test is a mature testing measure for infectious diseases: hospitals and the health system purchase the test reagents directly from authorized enterprises. Theoretically speaking, there is no supply shortage of test reagent kits; but due to limited time and production resumption, we have previously faced some difficulties. However, at present, production capacity has recovered. As of Jan. 21, daily production had reached 773,000, which is 40 times the number of suspected cases, and can generally meet the needs. Since the recovered production capacity at present only accounts for 60%-70% of the total capacity, our main work in the future will still focus on resuming production.

As for your second question, the total production capacity of face masks in China has reached over 20 million per day, which is the highest of any country in the world. Overall, it will still take some time to recover the production capacity for N95 and surgical masks. Mr. Lian will provide you with more information. Thank you.

Lian Weiliang:

I would like to share more information about the supply of medical face masks. The shortage of some medical resources has triggered huge public concern and the Party Central Committee and the State Council places great importance on the issue. General Secretary Xi Jinping has given important instructions on various occasions. The day before yesterday, Premier Li Keqiang inspected a national coordination center for key medical supplies used in epidemic prevention and control and helped resolve their most urgent problems. Mr. Tian just said that the National Development and Reform Commission is now working with the Ministry of Industry and Information Technology to coordinate the allocation of medical face masks. As a result of this, the allocation and availability of medical resources has more than doubled in the past two days.

To address the lack of face masks, we will step up our efforts in two aspects. First, increasing supply is a fundamental solution. Second, we should call for the scientific and rational use of face masks. To increase supply, we are now devoting all our efforts, day and night, to expand production capacity and increase production. As a result, important progress has been made. For example, N95 masks for medical protective purpose are in high demand. Many tend to consider the worst-case scenario and keep in reserve more masks than they can actually consume. Given that, by last night we managed to more than double our production capacity by preparing raw materials and starting to increase production and supply. Many enterprises worry about overcapacity in the future, so we have made it clear that the government will purchase and stockpile any excess products after the epidemic ends. With that in mind, enterprises can run now at full capacity as long as they meet standards. Also, more importance should be attached to the scientific and rational use of face masks. We call on the public to use face masks of different functions according to their specific needs, and avoid overuse. We do not encourage people to use valuable medical supplies for only general protective purposes. In this regard, we call on the press to help guide the public based on expert advice. As long as all parties work together, we will soon solve this problem.

CCTV:

What is the current state of supply of daily necessities, such as grain, oil and vegetables, across the country? What is the price of these goods now? As the Spring Festival holiday ends, the demand for meat, eggs, milk and daily necessities is increasing in large and medium-sized cities, but many small and medium-sized enterprises are still operating below their normal productive capacity. How can we secure a stable supply of daily necessities? Thank you.

Lian Weiliang:

To measure the supply of daily necessities, price is the most important benchmark. You mentioned the price of goods in your question, so I guess you understand the key point. Data from supermarkets and marketplaces in 36 large and medium-sized cities on Feb. 2 shows that the average retail prices of pork, beef, lamb and eggs have dropped by 0.3%, 0.6%, 0.8% and 1.3% respectively from their previous highs. The data also shows that the average price of 15 different vegetables dropped by 6.2%. Although some products such as chicken saw price increases, the fluctuation margin is still acceptable. Taking Wuhan in Hubei province as an example, the prices of some daily necessities surged when traffic control measures were implemented. However, prices have now fallen. The price of pork in supermarkets and marketplaces has dropped by 0.7% from its previous high. The average prices of 15 different vegetables dropped by 3.8% while the prices of beef, lamb, chicken and eggs remained the same.

From the supply perspective, most of the necessities across the country, especially the supply of food, are guaranteed. China's total grain output remains stable and has surpassed 650 million metric tons for the fifth consecutive year. We have a sufficient supply of stock. The stock of rice and wheat from all enterprises has surpassed China's total domestic consumption in a year. The production of beef, lamb, poultry and eggs has also increased to varied extent. Pork production has steadily recovered. Regarding the supply of vegetables, we also have an adequate inventory. The cultivation area of vegetables exceeded 5.6 million hectares, an increase of 2% year-on-year, and the output is estimated to increase by over 2%. There are some short-term supply shortages in some areas which are mainly caused by the difficulty in distribution due to the strict implementation of epidemic prevention and control measures. Several areas still face problems with the timely distribution of vegetables to markets. We are addressing these problems with targeted solutions.

With respect to daily necessities, in particular food, our supplies are sufficient. Everybody knows that China's food-processing capacity is very large, and its utilization rate is very low under normal circumstances. As long as production resumption and logistics distribution are well organized under the strictly-implemented measures for epidemic prevention and control, the provision of food and other living supplies will not be a problem.

In response to the resumption of work and production, as well as preparing for a potential increase in peoples' living needs after the Spring Festival holiday, we will focus on four areas of our work: increasing supplies, stabilizing prices, maintaining good social order, and prioritizing the needs in key areas.

In view of increasing supplies, we'll ensure that they will be provided to a level that exceeds normal demand. In other words, we'd rather have excessive stockpiles, which may be little or not used at all, than face shortages. By strictly following prevention and control measures, we will give priority to increasing supplies, cooperating with labor organizations to ensure that the workforce returns to their jobs and restarts production as well as to guarantee the smooth operation of logistics. For instance, we are jointly working with six provinces neighboring Hubei to secure an adequate supply of local vegetables. So far, there are nearly 60,000 metric tons of vegetables in the inventory, which can ensure a sustained supply of about 8,000 metric tons to Wuhan every day. In addition, the storage of 10,000 metric tons of frozen pork from the central reserve in the Shanghai Port is ready to be sent to Wuhan when needed.

To secure stable market prices, we will closely monitor the price indicators of daily necessities. Once there are obvious fluctuations, we will find the causes and launch targeted measures, especially the plans to guarantee constant supply.

To maintain stable social order, we'll continue to keep a close eye on the market, punishing those who violate the laws by spreading price-hike rumors or scheming or colluding to drive up prices. In particular, product quality supervision should be strengthened and we will impose severe penalties on people who sell counterfeit or shoddy products in accordance with the law.

Regarding our priorities in the key areas, we will prioritize demand from Wuhan, from Hubei as well as from severely affected regions where efforts to prevent and control the disease have been strained.

All authorities are coordinating and cooperating with each other in line with their respective roles and duties. Now, the Ministry of Commerce (MOC) and the State Administration of Market Regulation will give you more specific information. Thank you.

Wang Bingnan:

I'd like to say something more about this issue. The supply of daily necessities has been affected to some extent since the outbreak of the epidemic. Over the past few days, some regions have faced a temporary shortage in daily necessities and the intensified situation has drawn great concern from governments at all levels. To address the problem, the MOC has joined hands with the National Development and Reform Commission as well as local governments to take immediate action by asking the retail sector to increase the frequency at which they restock. Now, the situation seems to have been alleviated. According to the data monitored by the MOC, the supply of daily necessities is sufficient and their prices remain stable.

In addition to safeguarding supplies across the country, we have prioritized the demand from Hubei province, and of Wuhan in particular. The MOC has mobilized other cities and provinces to lend a helping hand to support Hubei through its difficult time. So far, the supply of daily necessities to Hubei has increased and the sales and inventory of vegetables have been restored to their normal levels. According to the Wuhan Administration of Commerce, on Feb. 2, the two biggest wholesale markets — Baishazhou and Sijimei — had 8,772 metric tons of vegetables in their combined stock. The three chain supermarkets —Wushang, Zhongbai and Zhongshang — had a stockpile of 2,155 metric tons of vegetables on Feb. 1, up 19.2% from three days earlier. At the same time, retail prices fell by 14%.

As you mentioned in your question, the demand for daily necessities in medium and large cities will continue to grow after having been affected by the prolonged Spring Festival vacation and the rush of people returning to work in the cities. Moreover, the logistics in some regions remain bottlenecked, there is a shortage of staff in commercial and trade companies and the capacity of small and medium enterprises cannot develop to its fullest extent. The MOC has placed great importance on these problems. We resolve to implement the planning decisions by the Central Committee of the CPC and the State Council, focusing on addressing problems and upholding bottom-line thinking. We have already made a plan to further guarantee the supply of daily necessities, mobilizing and directing the personnel involved in this issue to be more accountable for their work in the different regions. In this way, we will ensure that local markets keep a stable supply of necessities and goods.

We are carrying out work in the following four areas:

First, we are organizing and mobilizing people and entities to resume work. We call on local governments to encourage small and medium-sized businesses to open their doors and start operations as soon as possible. This would include getting staff to return to work; implementing internal prevention and control measures such as ensuring adequate ventilation, disinfection, and professional guidance for personnel at offices and work sites; and increasing the supply of basic living services such as shopping and catering for the public. I emphasize here that in the face of this developing epidemic, all local governments must conduct timely and full evaluation as well as hierarchical management and control. They cannot arbitrarily stop or close food markets and other places of business operation but must ensure the steady supply of daily necessities for the people.

Second, we need to strengthen joint guarantees and joint controls. We will strengthen the cooperation mechanism for joint guarantees and controls in Hubei and the surrounding nine provinces, autonomous regions and municipalities, and further mobilize all forces to ensure the steady supply of daily necessities in Hubei province, especially in Wuhan city. Director Lian just said that over the last few days, Shandong, Chongqing, Guangxi, Jiangxi, Yunnan and other places have transported more than 2,000 metric tons of vegetables to Wuhan, alleviating the tight supply situation there. The Ministry of Commerce will also send a special working group to Wuhan to carry out on-site coordination and guidance in response to any new situations and problems that may affect the local market supply.

Third, we need to do a good job in matching demand with existing supplies and ensuring that supplies are transported to the areas in need. The Ministry of Commerce has identified a number of key companies which can help in the nation's effort to guarantee the steady supply of goods and necessities and has also established a guarantee mechanism for hundreds of large-scale distribution companies. As of Feb. 1, the 50 large agricultural wholesale markets across the country could transfer vegetables and other goods in a relatively large scale to the areas in need. We compiled daily statistics: On Feb. 1, there were 30,000 metric tons of vegetables, 12,000 metric tons of meat, and 268 metric tons of eggs that could be transferred to other places. Once demands are raised by localities, the Ministry of Commerce will immediately organize the process of matching supplies with their needs and start the transportation of goods and necessities to affected areas so as to meet their demands as soon as possible. Regarding the problem of logistical bottlenecks in some areas, the State Council has made it clear that all localities must not block the passage of daily necessities without its prior approval.

Fourth, we will strengthen monitoring and guidance. We will make further efforts to ascertain the maximum supply of key daily necessities such as vegetables, find and handle abnormal situations in which certain items go out-of-stock in a timely way. We will release information about market supply, guarantee of supplies and price stabilization, strengthen guidance, stabilize expectations, and strengthen consumer confidence.

Kyodo News:

What's inter-provincial traffic like? And what role does e-commerce play in the guarantee of supplies?

Liu Xiaoming:

Thank you for your question. First of all, as for the inter-provincial traffic, the operation of the national highway network is generally orderly. In order to implement staggered shifts and organize logistics and passenger services safely and in an orderly fashion, we have extended the "free travel policy" for minibuses from today to Feb. 8. At present, the guarantee and operation of the national road network is also good. Since the Spring Festival, traffic on the national highway network has decreased significantly. On Feb. 2, the total volume of road network traffic had decreased by nearly 80%, and the operation of the overall road network was very reliable. However, recently, in some provinces, the need for epidemic prevention measures such as the measurement of body temperature has led to local traffic congestion. The Ministry of Transport and the Ministry of Public Security are coordinating with local transport departments and public security departments to strengthen traffic guidance. They are also working with health departments to increase the number of personnel deployed to measure body temperature and are using double- or multi-detection methods to alleviate traffic congestion.

Meanwhile, we also remind drivers not to occupy emergency lanes, and ensure the smooth transportation of important products and daily necessities such as medical supplies.

Overall, daily supplies are transported in an orderly way. Since the coronavirus outbreak, the Ministry of Transport, in accordance with the deployment of the State Council's joint prevention and control mechanism to respond to the epidemic, has worked hard to establish a joint mechanism with all provinces to ensure smooth transportation. The ministry aims to better resolve the issue of emergency transportation, and in particular to guarantee the transport of epidemic prevention and control materials, living materials such as livestock and poultry needed by Hubei province, as well as important materials needed for production such as electricity, coal and liquefied petroleum gas to the affected areas. Yesterday from 0:00 a.m. to 24:00 p.m., 17,000 vehicles carrying emergency supplies had gone through the green channels on expressways across the country. Of that total number, 8,362 vehicles carrying emergency supplies were driving along the expressways of Hubei province, and 2,625 were driving on the expressways around Wuhan city. The entire transportation system guaranteeing the efficient delivery of necessities and materials is working in an orderly manner.

Liu Xiaoming:

I think the e-commerce aspect you highlighted is also very important. Under normal circumstances, the Spring Festival is usually an off-season period for express courier services. However, in order to combat the epidemic during the Spring Festival this year, the national postal department rallied postal and express delivery companies together. These companies tapped on their extensive transportation networks, quickly opened international and domestic routes, secured smoother land transportation, and ensured the transportation of emergency relief supplies and daily basic supplies to people in the key affected areas such as Wuhan. Enterprises such as China Post, SF Express, and JD.com also used their respective advantages to safeguard the basic needs of the local people during the Spring Festival. Subsequently, 13 large express delivery companies opened green channels for relief supplies. As of Feb. 2, China Post organized the operation of 32,000 postal vehicles and 5 special postal airplanes. The special planes transported 49,000 cases of epidemic prevention materials such as masks and medicines, which greatly eased the pressure on transport. Thank you.

Wang Bingnan:

I would like to add a few words. As you know, e-commerce, which features online transactions and offline delivery, is one of the most important ways that Chinese consumers now shop for goods and services. Since the coronavirus outbreak, online shopping can not only meet people's daily needs, but also reduce the risks of infection brought about by mass gatherings of people.

Since the outbreak, the Ministry of Commerce has galvanized 11 major e-commerce companies in China to play a unique role in guaranteeing market supply. The work has been done in the following three aspects.

First, we have actively boosted supply. As vice minister Liu Xiaoming said just now, several e-commerce companies, such as JD.com, Wumart and SF Express, have used their global supply chains to make cross-border procurements of face masks, protective gowns and goggles of which there was a dire shortage. Meanwhile, they have strengthened cooperation with upstream suppliers to encourage manufacturers to resume production as soon as possible to increase medical supplies. Consumers can now buy those much-needed supplies online.

Second, we have created smoother delivery channels. Coordination between e-commerce and logistics and delivery services has been strengthened, with a large number of deliverymen working round the clock on the front-line. During the Spring Festival, we made sure that online stores remained open and offline delivery services operated in a timely manner. In particular, a slew of e-commerce companies selling seasonal fresh food made full use of their pre-positioned warehouses and brick-and-mortar stores to make doorstep deliveries, which met people's daily needs.

Third, we have guaranteed shopping safety to avoid infection. A number of e-commerce companies have adopted a new "zero-contact" mode of delivery to improve safety during the delivery of goods. In this method, deliverymen will put the goods at a certain place designated by customers to avoid direct contact and reduce the risks of infection. This mode of delivery originated from Hubei province and has been popularized across the country. Thank you!

Southern Metropolis Daily:

My question is about the supply of materials such as face masks, rice, flour and cooking oil. Since the outbreak, and in the face of a shortage of supplies, some manufacturers have been involved in activities such as price gouging, hoarding and counterfeiting, which has caused fear-induced purchases and aggravated the demand-supply tension. What will the relevant departments do to stop these activities in order to guarantee market stability? Thanks.

Gan Lin:

Thanks for your question. Price maintenance and quality and safety supervision for supplies including face masks, rice, flour, cooking oil, vegetables and fruits during the battle to prevent and control the epidemic is a key task for departments involved in market regulation. The primary political task of these departments is to crack down on epidemic-related illegal activities in accordance with the law, safeguard market order and people's interests, and contribute to the victory in this battle.

In line with the planning and requirements set by the CPC Central Committee and the State Council, the State Administration for Market Regulation has adopted extraordinary measures to ensure the steady supply of medical necessities such as face masks as well as goods essential to people's livelihoods such as rice, flour, cooking oil, vegetables and fruits. This is in addition to their work to improve market regulation on a daily basis. By holding ourselves to the highest standards, implementing the strictest measures and deploying the most resources, we have strengthened price stability and the supervision of the quality of products. We have also improved monitoring, inspection, evidence-based investigation,law enforcement and increased the exposure of illegal activities. We have issued urgent notifications to all market regulation departments across the country, released public notices to ensure price maintenance for epidemic-related supplies and set guidelines for cracking down on price gouging to make it clearer for law enforcement. As of Feb. 1, 390,000 law enforcement officers across the country had been mobilized and 1,413 cases of price gouging had been handled. I would like to raise two examples. The first one involved a drugstore that was fined three million yuan by the market regulation department of Fengtai district, Beijing municipality for hiking the prices of N95 masks. The second one involved another drugstore that was slapped with a three million yuan fine for hiking the price of masks by the market regulation department of Jinnan district, Tianjin municipality. Both stores faced the maximum punishment according to law. Using an iron hand, we will crack down on anyone who hikes prices to profit from the epidemic. You can check out the details of other cases which have been released on the websites of the State and local administrations for market regulation.  

The price order in the market is now generally stable. In addition to price, the quality of goods is of great importance, especially that of epidemic prevention products like masks and general commodities necessary for people's livelihoods, including rice, flour, edible oils, vegetables and fruit. With this objective, the State Administration for Market Regulation, jointly with the Ministry of Public Security, the National Health Commission and other relevant departments, launched a joint law enforcement campaign yesterday to crack down on the illegal production of masks and other protective products. This was done to preserve the market order and safeguard the interests of the general public during the epidemic. We will make sure that all cases are investigated and dealt with strictly and rapidly in accordance with the law, and all wrongdoings are severely punished regardless of who is involved. Last night, the Zhejiang Provincial Administration for Market Regulation investigated and dealt with a counterfeit mask case involving illegal online sales of 9.12 million yuan. The case has since been transferred to the relevant public security departments. We will continue to strengthen quality supervision of masks and other epdeicmic prevention products.

The market regulation department is maintaining supplies and stabilizing prices, by doing everything possible to play to our functional advantages. We are also contributing to the production and supply of epidemic prevention products and daily supplies in numerous innovative ways. First, special measures have been taken. 

We are in charge of market admission, business registration and the issuing of production permits. As of now, masks are in short supply, so it is likely some new enterprises will offer extra production capacity. When that happens, our administration will prioritize these affairs and open fast-track channels for them. As long as they meet our requirements, we will fast-track the completion of their business licenses and production permits so the enterprises can start production immediately. We have already implemented this measure in Haidian district, Beijing. In addition, Shenzhen has accelerated domestic sales of commodities originally produced for export. The export-oriented masks, once meeting the medical criteria of the importing countries, can be reregistered by our market regulation department and marked with Chinese tags to be sold domestically. We have put in a lot of effort via multiple means to guarantee the supply of goods in shortage. 

Second, we have given full play to the positive role of joint social governance. The State Administration for Market Regulation has set up a communication platform between market entities and consumers and launched campaigns to guarantee prices, quality and supplies. We are advocating for enterprises to act with integrity and self-discipline. We need them to set an example to the whole society and pass on the torch of conscience, confidence, compassion and determination. By focusing on consumer demand, we are mobilizing medical device producers, decontamination companies and online and offline platforms to take part in our campaign. At present, 33 leading enterprises have made promises to guarantee prices, quality and supplies. The administration has established the secretariat of the campaign and launched a website to report on specific measures and achievements of the campaign involving market regulation departments of all levels, as well as production, operation and service businesses.

In the process of safeguarding the market order, we've got a lot of support and participation from the whole society, especially the media. In the future, we hope to welcome more public oversight on market entities and our law enforcers. Thank you.

Bloomberg:

I'd like to ask what kind of influence the novel coronavirus outbreak will have on China's economy. For example, how will it affect the economy in the near future or next month? And what measures will China take to maintain investors' confidence in China?

Lian Weiliang:

Thanks for your questions. Your questions concern the overall situation. Judging from the current situation, the epidemic has put an increasing dampener on the economy, especially on consumption sectors including transportation, culture, tourism, hotel and accommodation as well as catering and entertainment. At present, the passenger volume during the Spring Festival travel rush, or "Chunyun" in Chinese, has decreased significantly and revenues from box office movie ticket sales, tourism and catering have also declined sharply year-on-year. But at the same time, there has been fast growth in burgeoning sectors such as online shopping and online food and entertainment businesses.

The impact of the novel coronavirus outbreak on the economy depends on the progress and effectiveness of our epidemic prevention and control work. Here, I wish to stress that the novel coronavirus epidemic will only have a temporary impact on China's economy, and the country's good economic fundamentals for long-term growth remain unchanged. Some people compared the coronavirus outbreak to the 2003 SARS epidemic and made economic loss projections based on the SARS damage. China's current economic strength, resources and abilities to deal with emergencies have been significantly strengthened since then, and we are fully confident in and capable of winning the battle against the epidemic. At present, our most urgent task is in accordance with the decisions made by the Central Committee of the Communist Party of China (CPC) and the State Council to take measures in an effective, orderly, scientific and accurate way to prevent and control the outbreak, and make sure that everything returns to normal as soon as possible.

As for the next steps to respond to the impact caused by the outbreak, we will put into practice the decisions made at the Central Economic Work Conference, and remain committed to the general principle of pursuing progress while ensuring stability, as well as to the new development philosophy of high-quality development. We will coordinate all work to maintain stable growth, advance reform, make structural adjustments, improve living standards, guard against risks, and ensure stability. As part of the coronavirus outbreak prevention and control work, enterprises that produce key medical supplies and daily supplies or are linked to sectors such as energy, transportation, city management, are encouraged to return to work to speed up production in order to ensure a stable supply of key necessities and materials. Companies that are responsible for major projects are also encouraged to return to work as soon as possible. In addition, we will roll out polices to aid the companies that are seriously damaged during the epidemic. More importantly, we should enhance our efforts to bolster weaknesses in key areas and links in need of attention, as well as foster new areas of growth. We are confident that together we will definitely win in the fight against the coronavirus. We will maintain stable economic development and create the foundation to complete our building of a moderately prosperous society. Thanks.

Beijing Youth Daily:

In order to curb the epidemic, what kind of financial support and policies have the relevant departments taken? Thanks.

Li Bin:

In terms of policy support, the Ministry of Finance, the Ministry of Human Resources and Social Security, the National Healthcare Security Administration, and the National Health Commission and other departments have rolled out favorable policies or provided funds to local governments and individuals to fight the new coronavirus so as to ensure the prevention and control of the novel coronavirus outbreak.

First, patient treatment. Patients confirmed to be infected with the virus will receive subsidies from the central and local governments for their medical expenses that are not covered by insurance or medical aid. Second, subsidies for medical workers. Medical workers and other personnel involved in preventing and controlling the virus will also be subsidized and those who become infected with the virus while on duty will be compensated. Third, supply of epidemic prevention and control materials and daily necessities. The central government will also provide necessary help to local governments to purchase medical equipment and testing kits to battle the epidemic.

The Ministry of Finance has earmarked a total of 5.4 billion yuan ($769.8 million) to support local governments across the country to prevent and control the epidemic. This includes 1.5 billion yuan for Hubei province, which is the epicenter of the battle. The National Development and Reform Commission has also invested 300 million yuan from the central budget to support the construction of a new hospital in Wuhan, the capital city of Hubei province. This new hospital is designated to treat patients infected with the new virus. In addition, the Ministry of Finance and the National Health Commission spent 60.33 billion yuan in advance to support the development of basic public health services and the prevention and control of the outbreak at the grassroots level. Thanks. 

CNBC:

Many provinces in China announced that the resumption of production would not take place before Feb. 10, and some enterprises have suspended operations. According to statistics acquired by CNBC, exports from these provinces accounted for over 90% of China's tota exportsl. My question is how all of this is affecting international supply chains. Thank you. 

Wang Bingnan:

Thank you for your question. We all know that every January China's imports and exports face greater variation than in other months because of the effect of the Spring Festival holidays. Most foreign trade enterprises resume production and ship their goods and services after the 15th day of the first Lunar month. The novel conoravirus outbreak happened during the holidays, and we have been keeping a close eye on the situation. The Ministry of Commerce has discovered that many foreign trade enterprises are rapidly resuming operations, various departments and local governments are fighting against the epidemic caused by the novel conoravirus and implementing targeted measures to improve the business environment and ease the burdens of all businesses. One perfect example from yesterday's news - the Suzhou municipal government in Jiangsu province introduced 10 policies to support small and medium-sized businesses affected by the epidemic. Actually, China's central authorities and local governments at all levels are now rolling out targeted policies to stimulate exports.   

In the context of the overall sluggish growth in global trade, the international community should work together to overcome these difficulties through concerted efforts. The World Health Organization (WHO) believes that China's epidemic prevention and control work is outstanding, that letters and packages from China are safe, and it opposes imposing travel or trade restrictions on China. We are confident that we can effectively contain the epidemic and finally overcome it. We also believe that governments and market entities at every link of the global supply chain will facilitate trade of China's products and services as well as for the commodities China imports. Thank you.

The Paper:

Just now a reporter raised the issue of the supply of medical products in Hubei, my question relates to the supply of these products across the whole country. Sources confirmed that there is a shortage of supply in other provinces. What about the supplies of emergency medical supplies such as one-piece protective suits, isolation gowns, N95 masks, medical surgical masks, goggles and protective masks across China? In addition, how long after mobilizing medical enterprises to resume full production during the Spring Festival holidays will it take to cover the shortfall of medical products in Hubei and across the country?

Tian Yulong:

Your questions are related to the partial and overall solution. If you look at the big picture, the restoration of production is rapid which ensures that Hubei reaches a "tight balance," This "tight balance" refers to a compromise between the supply of necessary goods and materials to Hubei and Wuhan, which is our key priority, and meeting the demands of other key epidemic-stricken cities as well as the overall national planning. So far, the situation looks optimistic. The resumed production ratio of urgently needed materials is between 60-70%, and the production capacity has moved from a state of emergency to that of a "tight balance." I believe that given our national mobilization and the continuous recovery of the industrial system, we will reach a more stable balance. 

From the perspective of production capacity, priority is given to enterprises which produce protective suits, masks, goggles, temperature measurement equipment, hospital beds and ambulances. We have also promised these enterprises that we will set up a interim collection and storage system with the National Development and Reform Commission. Just now, Mr Lian also said that loans with discounted interest will be guaranteed to encourage enterprises to restore and increase production. Since yesterday, we have reached a consensus with the National Development and Reform Commission and Ministry of Finance to pass this preferential policy for enterprises as soon as possible so as to speed up the restoration and expansion of production. On the whole, we are confident. Our industrial enterprises have exhibited a strong sense of social responsibility. Many people have given up their holidays, worked overtime and some even worked through three straight shifts.  

I believe that with the mobilization of the whole society; various enterprises, especially medical supply enterprises, have entered a state of rapid production. We are ensuring that key supplies reach Wuhan and Hubei, and are proceeding from a state of "tight balance" to "stable balance." Thank you.

Xi Yanchun:

This will be the last question. 

Ta Kung Pao:

Recently there have been several cases of the 2019-nCoV due to gatherings. China is now going to see another spike in traffic as we approach the end of the Spring Festival period and travelers are returning to their places of work. My question is what countermeasures are there to deal with this situation? Thank you. 

Liu Xiaoming:

Thanks for your question. We are now experiencing another Spring Festival travel rush where travelers are returning to their places of work. As such, the CPC Central Committee leading group, which was exclusively set up to deal with the epidemic, has issued the notice regarding the mass return trip after the Spring Festival holiday to strengthen the prevention and control of the epidemic. The Ministry of Transport has earnestly implemented the important instructions by General Secretary Xi Jinping and has made resolute efforts to curb the spread of the virus through transportation and cross infection. As everyone is concerned with the risk of the epidemic spreading during the spike in traffic brought about by people returning to work, we have worked with the relevant ministries and departments and decided to take the following measures:

The first measure is to mobilize all industries and sectors in China and carry out epidemic prevention work in accordance with first-level public health emergency response standards.

The second measure is to strengthen the ventilation and sterilization of public vehicles as well as the checking of body temperatures of travelers. Health departments have also issued a technical manual for the sterilizing of public vehicles and urged local authorities to ensure that transportation hubs and stations are equipped with thermometers. According to the manual, tests to measure the body temperature of drivers, conductors and passengers should be carried out with no exception. It also stipulates that there should be observation rooms and quarantine areas in service areas, ships, stations and wharves if conditions permit; and when any persons are found to have an abnormal body temperature, they should be observed, isolated and handed over in accordance with procedure and with no delay.

The third measure is to cooperate with other departments concerning epidemic prevention, control and quarantine. It is mainly to cooperate with health departments to do a good job in setting up and inspecting health and quarantine stations at public transport hubs and stations. 

The fourth measure is to guide local departments in the control of vehicles driving in and out of Wuhan, Hubei province. In particular, to guide them to carry out necessary inspections on vehicles moving in and out of Wuhan and to ensure the implementation of the one "cut off" and three "not cut off" principle. The one "cut off" principle refers to the need to cut off any channel through which the virus may spread. The three "not cut off" principle refers to the need to ensure that the highway transport network should not be cut off, that emergency supplies and transport routes for the prevention and control of the epidemic should not be cut off, and that the transport routes needed for the conveying of goods and materials necessary for people's daily lives and production should not be cut off. 

The fifth measure is to do a good job in tracing the persons who had close contact with the confirmed or suspected cases traveling on public vehicles. Where confirmed or suspected cases are found on passenger airlines, railway trains, or long-distance passenger transport vehicles, the origins of the infections should be investigated. At the same time, we will guide local transport departments to strengthen communication and cooperation with other departments such as human resources and social security, agriculture and rural affairs, education and so on, to implement the responsibilities of sources of migrant workers, destinations of migrant workers and schools, and to fulfill the responsibilities of governments at all levels, employers and transport enterprises. By taking all these measures, we aim to minimize the risk of the virus spreading during the traffic spike when a vast number of travelers return to their places of work and ensure success in our battle against this epidemic. 

In terms of other relevant work, we welcome supervision from the media. We hope that the media can supervise and urge local governments and enterprises to fulfill their responsibilities and travelers to protect themselves. With joint efforts, we will win this battle. Thank you. 

Xi Yanchun:

We have just had a special Spring Festival holiday without rest. I believe that our friends from media also experienced a tough holiday. I would like to take this opportunity to express my concern for all our journalist friends, especially journalists reporting from the front lines. I hope that everyone will take good of your health and protect yourselves. 

Thanks again to our speakers, and thank you all, too. The press conference is hereby concluded. 

Translated and edited by Zhang Jiaqi, Gong Yingchun, Zhu Bochen, Lin Liyao, Li Xiao, Yan Xiaoqing, Wu Jin, Zhang Rui, Liu Qiang, Mi Xingang, Cui Can, Wang Yanfang, Chen Yinjun, Li Huiru, Guo Xiaohong, Wang Qian, Zhang Junmian, Yuan Fang, Zhou Jing, He Shan, Wang Wei, Huang Shan, Jay Birbeck, David Ball, Kenneth Teh Chiu Soong. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.