Women’s online shopping for mobile phone accessories led to a fraud case worth 100 million yuan.

CCTV News:Ms. Wu, a citizen of Yangzhou, Jiangsu Province, is usually very cautious in shopping, and generally only chooses to buy genuine products. But this year’s online shopping experience made Ms. Wu very angry. I didn’t expect that after she called the police for help, she even brought out a fake and fake gang involving hundreds of millions of yuan!

Not long ago, Ms. Wu’s mobile phone broke the back cover. After searching and comparing online, Ms. Wu selected a back cover of the same model in a company called "Three Hammer Flagship Store". After the merchant swore that it was the original back cover, Ms. Wu readily paid.

After installing it on the mobile phone, Ms. Wu found that after the mobile phone, Gigan started to crack a little, and then the crack became bigger and bigger. After a few touches, the whole back cover cracked.

Ms. Wu asked for a refund, which was rebuffed by the online store customer service. Ms. Wu reported the police. Yangzhou police identified the back cover of the mobile phone bought by Ms. Wu and confirmed that it was a counterfeit registered trademark, so they immediately launched a secret investigation on the online shop involved. After investigation, the owner of the "Three Hammer Flagship Stores" is Liu from Shangrao, Jiangxi Province. This online store has many return addresses, which is obviously abnormal!

An online shop generally has 1-mdash; 3 return addresses, but in the background data of this online store, the police found that there are more than 30 return addresses.

Further investigation by the police found that Liu was a middleman who sold short, and the actual delivery place of counterfeit mobile phone accessories was the professional electronic market in Guangzhou and Shenzhen. The capital flow of Liu’s online shop was finally collected in the account of Shenzhen Yao.

From January 2019 to the present, all online shopkeepers and Yao involved in the case have huge capital transactions, which are generated almost every day. In summary, the average monthly transaction volume is more than 1 million.

The police investigated Yao, but the result was unexpected, and he was not the source of counterfeiting.

In order to find the fake dens, Yangzhou police in Jiangsu Province conducted an in-depth tracking of Yao’s bank flow and company logistics, and found Zhao, a female boss who has close capital exchanges with him. Her fake factory may be in Chang ‘an Town, Dongguan.

According to the capital and logistics data of Yao’s company, a large number of fakes originated from Yinying Electronic Technology Co., Ltd. under Zhao’s name. At the end of August, 2020, Yangzhou police, under the guidance of the Ministry of Public Security and the Jiangsu Provincial Public Security Department, deployed hundreds of police officers, divided into six roads, and collected the nets in Yangzhou, Jiangsu, Shenzhen, Shandong, Linyi, Shangrao, Jiangxi, Shijiazhuang, Hebei and other places.

The police found in their factory that there are two complete production lines for counterfeiting. There are 8 production workshops on each production line, and nearly 5 workers operate in each workshop.The shipment is huge and there is no rest.

At the same time, the biggest middleman of this criminal gang — — Yao was arrested at home. Another policeman found the warehouse of Ge Mou, a wholesaler, in Linyi, Shandong Province, and obtained a large number of counterfeit mobile phone accessories at the scene.

The police’s arrest operation destroyed the counterfeit black factory in Chang ‘an Town, Dongguan, Guangdong Province, and sealed up two production lines; In all parts of the country, more than 40 people involved in the wholesale and retail sectors were arrested, eight dens warehouses were destroyed, and nearly 80,000 pieces of accessories of well-known domestic mobile phone brands such as Huawei and 100,000 pieces of semi-finished accessories were seized. After investigation, from 2019 to now, Yinying Company’s counterfeit factory in Dongguan has sold counterfeit mobile phone accessories with a total value of nearly 110 million yuan. At present, the case is still under investigation. 

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The Ministry of Industry and Information Technology responded to "disable VPN": the clean-up target is unqualified people.

At the press conference of the State Council Office on the 15th, Zhang Feng, spokesperson and chief engineer of the Ministry of Industry and Information Technology, said that the target of this time was that VPN suppliers in China had stopped operating recently.Mainly those who operate without a license and do not meet the standards are cleaned up. It is not affected by enterprises and individuals who abide by the law.

The following is a record of the press conference:

The host attacked Yan Chun:

Good morning, ladies and gentlemen. Welcome to the press conference of the State Council Information Office. Today, we are very pleased to invite Mr. Zhang Feng, spokesperson and chief engineer of the Ministry of Industry and Information Technology, Mr. Zheng Lixin, spokesperson and director of the Operation Monitoring Coordination Bureau of the Ministry of Industry and Information Technology, and Mr. Wen Ku, director of the Information and Communication Development Department, and ask them to introduce the development of the industrial communication industry in the first half of 2017 and answer your questions. Let’s ask Mr. Zhang Feng to make an introduction first.

Zhang Feng:

女士们、先生们,新闻界的朋友们,大家上午好。我首先简要介绍上半年工业通信业发展情况,然后我和我的同事一起回答大家关心的问题。

今年以来,在以习近平同志为核心的党中央坚强领导下,全国工业和信息化系统不断增强“四个意识”,认真落实中央经济工作会议精神和政府工作报告部署,坚持以新发展理念统领各项工作,坚持以供给侧结构性改革为主线,深化“放管服”改革,大力振兴实体经济,全面实施“中国制造2025”,各方面工作取得了积极的进展,工业运行保持稳中向好的态势,主要指标好于预期,信息通信业保持较快发展。

工业经济延续一季度稳中向好运行势头。上半年全国规模以上工业增加值同比增长6.9%,增速同比加快0.9个百分点,处于近三年同期最好状态;前5个月规模以上工业企业实现主营业务收入和利润同比分别增长13.5%和22.7%。

The effects of structural adjustment, transformation and upgrading have been further manifested. Electronics and equipment manufacturing continued to lead the industrial growth, with the added value increasing by 13.9% and 10.9% respectively in the first half of the year. The industrial benefits of raw materials rose steadily, with a profit increase of 46.2% in the first five months. The consumer goods industry was generally stable. The added value in the first half of the year increased by 7.7% year-on-year, which was 0.8 percentage points higher than the overall industrial growth rate. In the first five months, the profit increased by 10.6%, and the supply level of middle and high-end consumption improved.

The key work of supply-side structural reform in the industrial sector has been steadily advanced. The de-capacity of steel was accelerated. In the first five months, 84.8% of the annual task of resolving excess steel capacity was completed, and the task of banning "strip steel" was fully completed by the end of June. Positive progress has been made in resolving excess capacity in industries such as electrolytic aluminum, cement and flat glass. Cost reduction measures continued to be strengthened, urging all regions to cancel more than 200 deposit projects involving enterprises and return more than 30 billion yuan of deposit. Steadily promote deleveraging, and the asset-liability ratio of industrial enterprises above designated size decreased by 0.7 percentage points year-on-year at the end of May. Vigorously develop advanced manufacturing industry and achieve new results, organize and implement five major projects, such as manufacturing innovation center and intelligent manufacturing, and promote the construction of "Made in China 2025" pilot demonstration urban agglomeration. In the first half of the year, the added value and investment of high-tech manufacturing industry increased by 13.1% and 21.5% respectively, which was 6.2 and 6.9 percentage points faster than that of the whole industry.

Positive progress has been made in the entrepreneurial innovation of small and medium-sized enterprises, and the efforts to support the innovation and entrepreneurship of small and micro enterprises have been further strengthened. The pilot demonstration of the manufacturing dual-innovation platform was actively promoted. In the first half of the year, the added value of small and medium-sized industrial enterprises above designated size increased by 7.6% year-on-year; In June, the PMI of small enterprises was 50.1%, ending the 32-month contraction period.

The information and communication industry maintained rapid development. The network has made greater strides in speeding up and reducing fees. The penetration rate of stable broadband households has increased to 67%, and the penetration rate of mobile broadband users has increased to 77.4%, all of which have exceeded the annual target. In the first half of the year, the revenue of telecom business increased by 5.7% year-on-year, and the revenue of Internet and related services increased by 19.8% year-on-year. 4G users increased by 120 million, reaching 890 million, accounting for 65% of the total mobile users; The proportion of optical fiber access users reached 80.9%, the prosperity index of China’s Internet industry grew steadily, and the software business income increased by 13.2% year-on-year.

Judging from the operation in the first half of the year, the industrial economy has achieved a good trend of speed stabilization, efficiency improvement, quality improvement and structural optimization while striving to overcome the complex and changeable external environment and the increase of unstable and uncertain factors, which laid a good foundation for the smooth operation of the industry in the second half of the year and the realization of the annual objectives and tasks.

In the next step, our department will focus on the following aspects:

First, further consolidate the momentum of steady growth of the industrial economy. The second is to focus on promoting the structural reform of the supply side in the industrial sector. The third is to vigorously revitalize the manufacturing industry. The fourth is to actively promote the conversion of old and new kinetic energy. The fifth is to enhance the supporting role of the information and communication industry in economic and social development.

The above is a brief situation. Now my colleagues and I are willing to answer your questions.

The host attacked Yan Chun:

Thanks to Mr. Zhang Feng for his introduction. Let’s enter the question-and-answer session. As usual, please inform your news organization before asking questions. Please ask questions.

CCTV reporter:

I think it is mentioned in the data that the industrial economy was at its best in the first half of the year in the same period of nearly three years, and the added value of industrial enterprises above designated size increased by 6.9%. Does this mean that the industrial economy has bottomed out and showed a steady and positive trend? In addition, I would also like to ask the spokesman to predict the trend of industrial operation in the second half of the year. Thank you.

Zhang Feng:

Please ask Director Zheng Lixin to answer this question.

Zheng Lixin:

Click to view larger image.

Thank you for your question. In the first half of the year, China’s industrial economy was generally stable, stable and positive, mainly manifested in the steady growth of industrial production, continuous improvement of benefits, accelerated conversion of old and new kinetic energy, and active promotion of structural adjustment. The main indicators were better than expected, and the current "good" situation of industrial operation can be understood from four aspects.

First, from the perspective of industrial production, the good situation is continuing.

First, the industrial growth rate is accelerating, and the momentum of steady growth is obvious. In the first half of the year, the growth rate of added value of industrial enterprises above designated size was 6.9%, which was the best in the past three years. In June, the growth rate of added value of industrial enterprises above designated size reached 7.6%, which has been higher than 6% for 14 consecutive months and has remained above 6.5% since this year; Among them, the growth rate of added value of manufacturing industry increased by 8% year-on-year.

Second, driven by major measures such as supply-side structural reform, the profits of upstream industries have increased substantially, and the benefits of enterprises have continued to improve. In the first five months, the total profit of 38 of the 41 major industrial sectors increased year-on-year. The income and profit of the main business above designated size increased by 13.5% and 22.7% respectively year-on-year, which is also relatively high in recent years, accelerating by 10.6 and 16.3 percentage points respectively over the same period of last year. While the profits of the whole industry increased substantially, the profits of the raw materials industry increased by 46.2% year-on-year, which played a great role in the profit growth of the whole industry.

Third, the international foreign trade market has picked up, and industrial exports have shown a recovery growth. In the first half of the year, export delivery value, an industry above designated size, grew by 10.9%, 11.6 percentage points faster than that of the same period last year, which strongly supported the industrial growth this year.

Second, from the perspective of industrial restructuring, good power is increasing.

First, the development of advanced manufacturing industry has been actively promoted. "Made in China 2025" has progressed steadily, and five major projects, such as manufacturing innovation center, intelligent manufacturing, strong industrial base, green manufacturing and high-end equipment innovation, have progressed smoothly, and major breakthroughs have been made in the development of major equipment such as domestic large aircraft and the first domestic aircraft carrier. In the first half of this year, the added value of electronics and equipment manufacturing increased by 13.9% and 10.9% respectively, and these two major industries became important forces for industrial growth in the first half of this year.

Second, the pace of transformation and upgrading of traditional industries has accelerated. We have implemented the "Three Products" special action, and internet plus and sharing economy have driven traditional industries to open up new development space. Smartphones, high-definition TVs and other products that meet the requirements of consumption upgrading have maintained rapid growth. In the first half of the year, the added value of consumer goods industry increased by 7.7% year-on-year, which was 0.8 percentage points faster than that of the whole industry.

Third, the cultivation of new kinetic energy is promoted in an orderly manner. The implementation of the innovation-driven development strategy has been accelerated, mass entrepreneurship and innovation in the manufacturing industry have flourished, and new technologies, new products, new models and new formats have emerged. In the first half of the year, the added value of high-tech manufacturing increased by 13.1% year-on-year, which was 6.2 percentage points faster than that of the whole industry. The output of industrial robots and integrated circuits increased by 52.3% and 23.8% respectively. In the first half of the year, we actively promoted structural adjustment, made positive progress in the transformation and upgrading of traditional industries, and achieved a great leap in emerging industries.

Third, from the perspective of regional development, a good foundation is being consolidated.

First, the industrial growth of the eastern coastal provinces with strong innovation ability and large investment in technological transformation is stable. Shanghai, Fujian and other provinces and cities have formulated policies and measures to accelerate the development of advanced manufacturing industries and promote the transformation of old and new kinetic energy, and continued to expand industrial investment and investment in technological transformation, thus maintaining rapid development of regional industries. The growth rate of industrial added value in Jiangsu, Guangdong, Shandong, Henan and Zhejiang, which account for the top five in the national total industrial output, is higher than the national average growth rate, and the support of industrial provinces for steady industrial growth is further enhanced.

Second, the northeastern and western provinces with heavy industrial structure and poor efficiency in the previous two years showed a good trend. In the first half of the year, the industrial growth rate in Ningxia, Yunnan, Qinghai and other regions was faster than the national average growth rate. The decline in industrial growth rate in Liaoning narrowed by 3.4 percentage points year-on-year, and profits in Xinjiang and other provinces all turned from a sharp decline in the same period last year to a rapid increase.

Fourth, from the indicators related to industrial activities, good expectations continue. In the first half of the year, the ex-factory price (PPI) of industrial producers increased by 6.6% year-on-year, which has maintained a positive growth for 10 consecutive months. The purchasing managers’ index of manufacturing industry has been above threshold for 11 consecutive months, indicating that the production of enterprises keeps expanding. Industrial electricity consumption and freight volume increased by 6.1% and 10% respectively, and increased by 5.3 and 6.9 percentage points respectively. The matching between these related indicators and industrial growth is increasing.

Just now, a reporter friend asked about the expected situation of industry in the second half of the year. Generally speaking, the signs of stable and good industry in China are increasing, especially under the impetus of supply-side structural reform, the transformation and upgrading of traditional industries has become an important force to consolidate economic development. However, we also notice that structural contradictions are still outstanding in economic development. With the continuous implementation of the central government’s policy of supporting the real economy, industrial development is constantly overcoming various difficulties, achieving a growth rate of 6.9% in the first half of this year, achieving the best state in the past three years, and constantly overcoming various difficulties.

Looking forward to the situation in the second half of the year, there are more and more factors conducive to the steady growth of industry, but we still have to focus on solving some new situations and new problems that may arise in industrial operation. We also focus on strengthening the monitoring, early warning and prediction of industrial operation, constantly discovering the problems that affect the steady growth of industry and constantly solving these problems. It should be said that the good momentum of ensuring stable industrial growth in the second half of the year will be further consolidated, and it is expected that the industry will continue to operate smoothly in the second half of the year. According to the deployment of the CPC Central Committee and the State Council, we will conscientiously implement policies and measures to stabilize growth, promote reform, adjust the structure, benefit people’s livelihood and prevent risks, further promote the supply-side structural reform in the industrial sector, continuously accelerate the conversion of old and new kinetic energy, revitalize advanced manufacturing industries, maintain healthy industrial development, and strive to accomplish all tasks this year. Thank you.

American cable news reporter:

Recently, some media pay more attention to China’s VPN-related policies. I heard that some VPN providers in China have stopped operating. Can you confirm or clarify it? In addition, what laws and policies does China have on VPN management? Thank you.

Zhang Feng:

Let me answer this question for you. The problem you mentioned just now is like this. In order to strengthen market supervision, maintain a fair and orderly market order and promote the development of the industry, in January this year, the Ministry of Industry and Information Technology issued the Notice on Cleaning up and Regulating the Internet Network Structure Service Market. The Notice is mainly to better regulate market behavior.The main targets of the regulation are enterprises and individuals who have not been approved by the competent telecommunications authorities and have no qualification for international communication business, who rent international private lines or VPN to carry out cross-border telecommunications business activities in violation of regulations. You can also take a closer look at the relevant provisions on cross-border business activities, which will not affect domestic and foreign enterprises and users to carry out this normal cross-border access to the Internet, and he will legally carry out various business activities according to regulations, and will not bring them any impact. Mainly to clean up those who operate without a license and do not meet the standards. It is not affected by enterprises and individuals who abide by the law.

At the same time, we also noticed that some foreign trade enterprises and multinational enterprises can rent from telecom operators who set up international communication import and export bureaus according to law when they need to cross-border networking through special lines for office use and other reasons, and the relevant provisions of the Notice will not affect their normal operation.

China International Television reporter:

Since the summer of this year, there have been frequent rainstorm disasters in many areas of China. We know that communication is very important for emergency rescue and disaster relief. I would like to ask, what is the current progress of communication support in the disaster area? Thank you.

Zhang Feng:

This question is answered by Director Wen Ku.

Wen Ku:

Click to view larger image.

China is a country where various geological disasters occur frequently. Communication plays an important role in emergency rescue and disaster relief, whether it is to report safety to relatives and friends or to communicate emergency rescue and disaster relief information. In order to do a good job in emergency communication support this year, at the beginning of this year, our Ministry issued relevant documents on flood control communication support, sent inspection teams to Henan, Anhui, Hunan, Guangdong, Fujian and other places to carry out inspections on flood control emergency communication support, and organized emergency communication support drills in key areas such as Beijing, Jiangsu and Guangdong to continuously improve the emergency communication support capability of the whole industry.

Since the flood season, many parts of the country have been hit by heavy rains. In view of the exceptionally heavy rain and flood disasters that are rare in history, under the overall arrangement of the Ministry of Industry and Information Technology, the local communication industries responded in time and fought against disasters, and the relevant communication administrations took the lead and went to the front line to supervise and dispatch flood fighting and rescue; The basic telecommunications enterprises acted quickly and dispatched a large number of personnel and equipment to repair damaged communication facilities and do a good job in emergency communication support. According to statistics, as of July 23, the national communications industry has dispatched 182,000 emergency repair personnel, 67,000 emergency repair vehicles and 85,000 power generators, and sent 180 million emergency short messages. After all-out repair, 52,900 base stations (accounting for 97.3% of the total number of returned base stations) have been restored, and 10,000 kilometers of lines have been restored (accounting for 95.3% of the total number of damaged lines). In the early stage, the communication facilities affected by floods in southern China have been basically restored, and staged results have been achieved in flood control and disaster relief. At present, it is mainly due to heavy rainfall in Northeast Jilin, and some facilities are damaged and are being fully repaired. The overall operation of the national network is stable, and there is no total communication resistance in large areas above towns and villages, and the emergency rescue and disaster relief dispatching and command communication in the affected areas is smooth.

Our department will continue to pay close attention to the development of flood, dispatch and respond in time, do a solid job in emergency communication support, and provide strong support for flood fighting and emergency rescue.

Reporter of China Radio International:

We know that this year is the third year that China has proposed to speed up and reduce fees. How does the Ministry of Industry and Information Technology evaluate the work progress in these three years? In addition, what are the specific work plans for the second half of the year? What is the overall benefit of speeding up and reducing fees? Thank you.

Zhang Feng:

Let me answer your question. Thank you for your question. According to the request of the State Council, the work of speeding up and reducing fees has been started, and this year has entered its third year. The CPC Central Committee and the State Council attached great importance to it, and in this year’s "Government Work Report", they asked the Internet to take greater steps to speed up and reduce fees.

The Ministry of Industry and Information Technology resolutely implements the decision-making arrangements made by the CPC Central Committee and the State Council, and works with relevant departments and basic telecommunications enterprises to push forward all work in a down-to-earth manner. At present, relevant work is progressing well.

First, we will continue to promote the construction of high-speed broadband networks. All three companies continue to promote the construction of fiber-optic broadband and 4G mobile broadband networks, and constantly strengthen the breadth and depth of network coverage. By the first half of 2017, all cities in China had built optical network cities with a total of 2.99 million 4G base stations. The proportion of broadband users over 20M nationwide reached 86%, and the proportion of 4G users reached 65%. We will continue to promote the full coverage of rural broadband, and jointly organize and implement the pilot project of universal telecommunications service with the Ministry of Finance. More than 130,000 administrative villages have been deployed with optical fibers. All the 32,000 administrative villages supported this year have been confirmed, and bidding has been started in various places.

The second is to vigorously promote the popularization of broadband. As of May, the total number of fixed broadband household users in China exceeded 300 million, and the household penetration rate reached 67.0%. Mobile broadband users have surpassed the 1 billion mark, and the penetration rate in the national population has reached 77.4%. Both of the two penetration indicators have achieved their annual development targets ahead of schedule.

Third, various preferential measures for fee reduction have been implemented. Since May 1st, all three companies have significantly reduced their international long-distance telephone charges in major directions to 0.49-0.99 yuan/minute, with an average drop of up to 90%. At the same time, the Internet private line access charges have been lowered by more than 15%, and the international settlement negotiations will be further intensified, and the international long-distance telephone charges in more directions will be gradually lowered. For industrial parks, dual-innovation enterprises, etc., we will launch special broadband products such as business lines and micro-broadband that can better meet the needs of small and medium-sized enterprises.

With regard to the cancellation of domestic long-distance roaming charges for mobile phones, our department has continued to push the three basic telecommunications companies to speed up their work in accordance with the principle of ensuring that the work is in place and striving for early implementation. According to what we know now, the three companies are going all out to promote system transformation and other related work, and strive to achieve their goals ahead of schedule.

Speed-up and fee reduction have promoted the continuous development and growth of China’s digital economy. According to the White Paper on the Development of Digital Economy in China (2017) issued by China Institute of Information and Communication, in 2016, the scale of China’s digital economy reached 22.6 trillion yuan, a nominal increase of over 18.9% year-on-year, which was significantly higher than the GDP growth rate of that year, accounting for 30.3% of GDP. Digital economy has become the core driving force for economic growth in recent years, and its contribution to GDP growth is increasing. The deepening of speeding up and reducing fees and the development of digital economy have also driven the competitiveness of related enterprises in China to continue to increase. At present, the total market value of 89 listed Internet companies in China has reached 7.4 trillion US dollars, an increase of nearly 40% compared with the end of 2016. Three companies have entered the top 10 listed Internet companies in the world, and nine companies have entered the top 30.

It should be said that the significance of speeding up and reducing fees is very great. Thank you.

Hong Kong Cable TV reporter:

I am very concerned about VPN. I would like to ask, according to the Notice issued in January, what is the approval standard for relevant enterprises?

Zhang Feng:

Not only private Internet lines, including VPN, but also basic telecommunications services and value-added telecommunications services need to be approved by the government. There are regulations from the People’s Republic of China (PRC) Telecommunications Ordinance to the directory of telecommunications services, and these regulations have different requirements for different services. For example, operating basic telecommunications services requires basic telecommunications services, and operating value-added telecommunications services requires value-added telecommunications services. There are many value-added telecom services now, which are all described in the new telecom service catalogue. So the standard question you just asked has different requirements for different businesses, and accordingly there are different standards. For example, big data, cloud computing, data centers, etc., mainly strengthen management, strengthen norms, ensure consumer rights and interests, and provide high-quality, long-term, fixed and safe services. For example, there are still some data centers, namely IDC, where the standards have also been revised, mainly to ensure the quality of service and security, which is the most important. Many of our businesses are now in the cloud, and the data center is an important support. If the data center is not well protected and does not operate safely and reliably, it will have great hidden dangers for enterprises. Thank you.

China Daily reporter:

We noticed that the PMI of SMEs in June was 50.1%, which was above the critical point for two consecutive months. Does this mean that the development trend of SMEs is improving? Next, what specific measures will the Ministry of Industry and Information Technology take to promote the development of small and medium-sized enterprises? Thank you.

Zhang Feng:

Thank you for your question. In the first half of this year, our department stepped up efforts to supervise the implementation of the support policies for small and medium-sized enterprises, promoted the introduction of preferential measures to raise the upper limit of annual taxable income of small and low-profit enterprises from the current 300,000 yuan to 500,000 yuan, organized special actions on accounts receivable financing for small and micro enterprises, and actively promoted the pilot demonstration of the "double innovation" platform for manufacturing, the national demonstration base for small and micro enterprises’ entrepreneurial innovation, and the demonstration of small and micro enterprises’ entrepreneurial innovation cities. At present, 38,000 small and micro enterprises have settled in 194 national demonstration bases for small and micro enterprises’ entrepreneurship and innovation, and 760,000 jobs have been provided.

Under the continuous action of policies and measures to support small and medium-sized enterprises, the development of small and medium-sized enterprises has shown a steady and positive trend. In the first half of the year, the added value of small and medium-sized industrial enterprises above designated size increased by 7.6% year-on-year, which was 0.7 percentage points faster than the overall industrial growth rate. In the first five months, the operating income and total profit of small and medium-sized industrial enterprises above designated size increased by 13.5% and 15.7% respectively, up by 7.5 and 6.3 percentage points respectively over the same period of last year, and the loss of enterprises was 14.9%, narrowing by 1.6 percentage points over the same period of last year. In June, the PMI of small enterprises was 50.1%, ending the situation of being in the contraction range for 32 consecutive months and being above the critical point for two consecutive months. These data show that at present, the operation of small and medium-sized enterprises is generally stable and their economic benefits have maintained rapid growth.

In the next step, our department will focus on the following aspects. First, focus on improving the policy environment. Do a good job in organizing and implementing the plan for promoting the development of small and medium-sized enterprises (2016-2020), and at the same time cooperate with the National People’s Congress to continue to do a good job in the revision of the SME Promotion Law. The second is to increase fiscal and taxation support. Continue to do a good job in the work of the National SME Development Fund, and drive social capital to promote the development of growing SMEs in seed stage and initial stage. Promote the implementation of preferential policies such as tax reduction and exemption to support the development of small and micro enterprises. The third is to further improve the financing environment. Deepen cooperation with banking financial institutions and implement cooperation agreements signed with China Construction Bank. Do a good job in the management of credit guarantee compensation funds for small and medium-sized enterprises. Cooperate with the People’s Bank of China to do a good job in pledge financing of accounts receivable. The fourth is to promote the transformation of entrepreneurial innovation of SMEs. We will continue to implement the informatization promotion project for small and medium-sized enterprises and the intellectual property promotion project for small and medium-sized enterprises. Use the "internet plus" to promote Sharing Manufacturing and promote the development of large, medium and small enterprises. At the same time, we will continue to hold the "Maker China" Innovation and Entrepreneurship Competition. Promote the construction and pilot of smart clusters. The fifth is to improve the public service system. Promote the development of SME policy services and voluntary services. We will promote the network construction and service development of public platforms for small and medium-sized enterprises. Thank you.

NPR reporter:

I want to ask ordinary people how to visit and browse foreign websites. What will happen if VPN is used? It is reported that some places have issued regulations to strengthen the management of those who use VPN to surf the Internet illegally. Is this the case?

Zhang Feng:

Please listen to the Secretary Wen’s reply.

Wen Ku:

Thank you. All three journalists are concerned about VPN. In fact, Mr. Zhang has given a very accurate answer to the VPN question just now. I’d like to repeat that to operate related businesses in China, you should apply for permission according to the laws and regulations of China, which is actually done in many countries all over the world. This is done in the United States, Europe and Asia, and the management methods of each country are different.

I don’t know about the local regulations you mentioned just now. But I can tell you that the three major operators in China have done a lot of work in providing services to the people, and the network speed has been continuously improved, which has achieved good results. Just now, Mr. Zhang also introduced this aspect, especially the digital economy, the streets and lanes, especially the bike-sharing near the subway entrance, etc., which shows that the network coverage is very perfect and the application is increasingly extensive. At the same time, we will also pay attention to some needs of ordinary people. However, it is not allowed by the laws of China to spread harmful or even violent information through the Internet. Thank you.

China News Service reporter:

Two questions. First, the State Council recently deployed the construction of the "Made in China 2025" national demonstration zone, and said that it would innovate its system and mechanism. Please tell us something about it. Secondly, it has been reported recently that the four major automobile industry associations in the world sent a letter to the Ministry of Industry and Information Technology, requesting to postpone the implementation of the dual-point system for new energy vehicles, which is what they call the quota policy. Please tell us about the impact of the dual-point system on the automobile market. What is the response of the Ministry of Industry and Information Technology to the demands of the four major automobile industry associations? Thank you.

Zhang Feng:

You just asked two questions. Let me answer your first question, which is about the creation of a "Made in China 2025" national demonstration zone recently deployed by the the State Council Standing Committee. It is of great significance to create a "Made in China 2025" national demonstration zone and explore new breakthroughs in the transformation and upgrading of the real economy, especially the manufacturing industry, to promote structural reform on the supply side, build a manufacturing power, maintain medium-and high-speed economic growth, and move towards the middle and high-end level. The deployment of "Made in China 2025" national demonstration zone in the State Council is an important support for the implementation of the strategy of manufacturing a strong country, and it is also an important measure to accelerate the "Made in China 2025" to take root. The Ministry of Industry and Information Technology will conscientiously implement the deployment requirements of the the State Council Standing Committee, continuously enrich the work content and policy connotation of the demonstration area together with the member units of the National Leading Group for Building a Powerful Manufacturing Country, improve the gold content of the pilot demonstration work, guide and support local bold innovation, try first, form a typical experience that can be replicated and popularized, and accelerate the overall process of "Made in China 2025".

Specifically, first, we should pay close attention to the study of the relevant declaration standards, management methods and workflow of the demonstration area, and further clarify the principles, work requirements and demonstration priorities of the establishment. Second, it is necessary to make overall consideration of the connection between the existing pilot demonstration and the creation of demonstration areas, further focus on policy resources, and form a joint effort between departments, the central and local governments. Third, we should refine and improve preferential policies, and make efforts in deepening the "streamline administration, delegate power, strengthen regulation and improve services", promoting the development of large, medium and small enterprises, and transforming and upgrading traditional industries. Preferential policies mainly focus on the following four aspects: First, simplify administration and decentralize power, further deepen the "streamline administration, delegate power, strengthen regulation and improve services" reform in the demonstration area, optimize the business environment, and increase efforts to attract foreign investment. Second, fiscal and taxation financial support, support demonstration areas to vigorously promote innovation and entrepreneurship, strengthen corporate equity incentives, and explore policies such as linking credit evaluation with tax convenience services. Third, land supply guarantee, including policies such as giving moderate inclination to the annual new industrial land index in the demonstration area. The fourth is the introduction of talent training, supporting the demonstration area to expand the two-way flow mechanism of talents, carrying out pilot projects of entrepreneurship subsidies, and supporting overseas talents to return to China to start businesses.

The main body of the demonstration area is the local area. The Ministry of Industry and Information Technology will strengthen support and guidance with the members of the National Leading Group for Building a Powerful Manufacturing Country, so that the demonstration area can better play its role of demonstration and lead, and drive other regions to accelerate the upgrading, efficiency improvement, transformation and upgrading of the manufacturing industry. Thank you.

Zheng Lixin: I will answer the second question. Thank you for your question first. The parallel management method of average fuel consumption and new energy points of passenger car enterprises, also referred to as the double points method, was recently publicized on the legal information website of China Government of the State Council Legislative Affairs Office, and will be officially released in the near future when the release procedure is fulfilled. The double integral method is aimed at the actual situation of the development of new energy vehicles in China. Through this method, we can establish a long-term mechanism to promote the development of new energy vehicles, promote the research and development and promotion of new energy vehicles, and strengthen the management of energy conservation and emission reduction of automobile products. This is also a common practice in the world. In this respect, we will also actively carry out international cooperation, jointly promote the development of new energy vehicles in China with the international community, and create a good environment for the development of our traditional vehicles.

The reporter mentioned the suggestions made by the four major automobile associations. We received the opinions of the four associations during the publicity of the double-point method, and we will do further research. Thank you.

The host attacked Yan Chun:

Time, today’s press conference is over. Thanks again to several publishers, and thank you all. thank you