1. Shanghai Media Group (SMG) News Center: Walt Disney CEO Robert Iger confirmed on February 6 that his company is negotiating with the Shanghai Municipal government on establishing a theme park in the city. How is this progressing? 

Jiao Yang: This question has been raised many times, and I have answered it before. I have nothing new to tell you for the moment.

2. Wenhui Daily: Local drivers are complaining that it is difficult for them to apply for stickers which certify that their cars are environmentally-friendly. Why is this? It is reported that the National Third Phase Motor Vehicle Emission Standard will be implemented by 2007. Will the new standard affect the existing one?

Jiao Yang: As to your first question, there are a total of 72 service outlets handling applications for stickers citywide. Today, I have consulted the relevant authorities and learned that normal applications for stickers will not take much time. The relevant department should listen to the concerns of citizens and improve their efficiency and offer convenience to car owners. For vehicles needing appraisal, the owners should go to the 24 appraisal outlets as soon as possible, and they can call or book in advance to avoid wasting their time. If car owners disagree with the designation , they can apply for a reappraisal. With the correct documentation, vehicles which cannot complete the checkup by February 15 can still run on the elevated roads in downtown. I hope the media can keep the public informed and help car owners to complete the job within the time limit.

As to the emission standard, the National I Motor Vehicle Emission Standard, the so-called National First Phase Motor Vehicle Emission Standard, is equivalent to the European I criteria for emissions. At present, a large number of vehicles far exceed the National I emission standard, with the pollutants seriously affecting air quality and residents' health. Therefore, the banning of heavily-polluting vehicles from the restricted zone will be beneficial to residents. Shanghai's new three-year environmental protection plan specifies that the city will put into effect the National III emission standard by 2007, but this doesn't mean that restrictions will be placed on existing vehicles which conform to the National I and II standards. The media is encouraged to publicise this point.

3. Oriental Morning Post: I have two questions. Firstly, you have just mentioned the National I emission standard; can you tell me what kind of equipment systems are necessary to reach the standard? Many people suggest that purification equipment can be installed in vehicles, but we know that it is not effective. Can you tell me why it is not feasible?

My second question is for the leader of the Shanghai Statistics Bureau. The statistics gazette for last year has just been released; can you tell me what is the difference between housing prices last year and the year before? I want to confirm a figure in the gazette. It reports that the real estate industry registered added value of 67.023 billion yuan (US$8.3 billion) last year, down 4.1 percent from a year earlier. However, in 2004, the added value was reported at 62.259 billion yuan, so according to the figures it should be up by 7 percent. Can you tell me why the reported figure is down 4.1 percent?

Jiao Yang: You have raised a professional question, which is of concern to many people. Pollution control on motor vehicles includes both fixed and supplementary systems. Take gasoline-fueled vehicles for example, for pre-fitted purification, Electronically Controlled Gasoline Injection (ECGI) is the most effective method. Through the use of ECGI and Exhaust Gas Oxygen (EGO), the optimum balance can be struck between performance, fuel-efficiency and emissions. The equipment can only be installed when a vehicle is being designed and manufactured. Additional systems such as the Catalytic Converter for Reduction and Oxidation (CCRO) is complementary to the pre-fitted systems. Therefore,  the National I emission standard requires gasoline-fueled vehicles to be equipped with ECGI, EGO and CCRO, while diesel-fueled vehicles should have turbochargers. That's why we cannot refit vehicles, after they roll off the production line, to meet the standard.

Pan Jianxin (director of the Shanghai Municipal Statistics Bureau): Since March last year, China and Shanghai have enhanced the macro-adjustment policies concerning the real estate sector. Over the past year, Shanghai has been in step with the central government's macro policies and also the principles laid out by the Shanghai Party Committee and Municipal government that give priority to residential properties, native residents and non-luxury properties. We are also aiming to encourage the market, regulate investment and curb speculation. Generally speaking, the policies and principles have had a positive effect, with trends in the real estate market coming in line with the requirements of the macro-adjustment policies and the market in a stable condition. As for property prices, increases have registered a steady decline. Sales prices in 2005 increased by 9.2 percent from a year earlier, down 6.6 percentage points from the previous year. Since June last year, property prices have reported month-on-month declines, but the decline has gradually slowed. In July last year, property prices saw their sharpest decline of 2.6 percent from the previous month, while the decline had slowed to 0.3 percent by December. The month-on-month decline of last year was down 2.8 percent from the end of 2004. The average sales price of last year was 6,698 yuan per square meter, up 313 yuan from a year earlier. The reporter has mentioned that the real estate industry's added value last year fell by 4.1 percent from the previous year, which differs from the figure suggested by the statistics. Why? Last year, China conducted an economic survey in accordance with the requirements of the State Council. At that time, we released instant reports of 2005, and after the country carried out a uniform survey, the instant reports were corrected by using the new survey results. Therefore, some figures have changed.

4. Shanghai Morning Post: Does the Shanghai Statistics Bureau have the regional-based figures for the local real estate market, and also the price changes within the city's various ring roads? It is said that a Maglev train is likely to be built between the Pudong International Airport and Hongqiao Airport. Is it true? Local gas stations currently see shortage of supply, and has local department noticed it and do you have any measures to ensure the supply to taxis.

Pan Jianxin: The regional-based property prices are available, but as it is too much, I haven't carried them with me now. I can offer you after the press conference.

Jiao Yang: As to your question that whether to establish Maglev train between the two airports, many plans are currently being discussed and selected. After the plan is confirmed, we will inform to you promptly.

Local department is aware of the supply shortage in local gas stations and they have adopted corresponding measures. At present, the shortage is eased. They have also prepared certain plans to guarantee the fuel and gas supply.

5. SMG radio news center: My question is for Director Pan.  As you said, Shanghai has set a goal for GDP growth of 9 percent annually for the next five years. This goal, compared with the double-digit growth rates of the previous five years, gives us the impression of an economic slowdown.  How would the government respond to this assumption? Thank you!

Pan Shuxin: According to the 11th "Five-Year" plan passed by the Shanghai People's Congress, the targeted GDP growth for the following five years is set at over 9 percent annually in addition to improvements in economic structure, enhanced efficiency and decreasing consumption. 
We understand this goal follows the central government's scientific development philosophy as well as its macro economic considerations.  While beneficial in terms of improving the quality and efficiency of the expanding economy, it encompasses a methodology aimed at realigning economic growth patterns. It is in tune with the ambition for fast and efficient economic growth.

Let's put it in concrete terms.
Firstly, after a careful comparison, the two growth targets -- 9-11 percent for the 10th "Five-Year" plan and over 9 percent for the 11th "Five-Year" plan -- basically fall in the same growth range though differing to some degree.

Secondly, our experience in the past five years indicates that the actual growth rate achieved over the next five-year period will probably far exceed the target of 9 percent, as long as the local economy continues stable and healthy development.  Our goal for the past five years, or 10th "Five-Year" period, was set at 9-11 percent annually, but actual growth of an average of 11.5 percent was recorded.

Thirdly, Shanghai has maintained double-digit economic growth for 14 years straight, which has laid a solid foundation for the city's development in the 11th "Five-Year" period.  We believe the growth target at 9 percent for the following five years meets the guideline of "achieving stable and relatively fast economic development" as stipulated by the central government for the period.  Moreover, it embodies the multi-faceted development goal of improving economic structure, enhancing efficiency and decreasing consumption, rather than simply a fast growth rate. It will create more opportunities to facilitate the process of economic restructuring as well as the shifting of economic growth patterns.

6. Phoenix TV: We have noticed that a low-cost hospital has opened in Shanghai's Zhabei District. The hospital caters to families living on low-income insurance and those categorized as extremely poor. How does the city government intend  to promote such hospitals?
Another question is for Mr. Cai.  The political exchanges between the mainland and Taiwan last year have led to an increase in investment from Taiwan. Can you give details on the sectoral distribution of Taiwanese investment?

Jiao Yang: Your first question is about medical services, or rather public hospital services.  The municipal government has long upheld the principle that public medical institutions must serve the public benefit, providing fair and reasonably priced basic medical and health services to the general public.  This is inherent in the concept of public hospitals. 
The current trial operation of the comprehensive reforms of the community medical sector in Changning and Songjiang districts is just for such purposes: to provide fairly good basic medical services to residents at low prices.  The reforms, now progressing well in the two districts, have received a positive response from residents.  Since it is still early days, we will be looking to unearth potential problems during the trials so as to refine our methodology and gradually extend  the reforms throughout the city. 
Comprehensive reforms of A- and B-category hospitals have also commrnenced.  Deliberation is underway to perfect application details.  Given the fact that medical services are a very complex issue that is closely related to public health and safety, they must be handled in an active yet reliable and careful fashion.

The Shanghai Party Committee and municipal government have initiated the  "three shifts" strategy for local medical reforms, that is, to shift the development focus to basic, community and rural medical services. In line with this strategy, Shanghai will prioritize the development of community health services, rural cooperative medical systems as well as emergency response mechanisms to manage public health incidents and disease control work.  All these actions contribute to Shanghai's intention to provide more convenient, economic, safe and efficient medical services to citizens. 
In addition, pricing management will be tightened up at hospitals.  Illegal charging practices will be heavily punished in accordance with the law.

Cai Xuchu: Our statistics indicate that Taiwanese businessmen invested in 309 projects in Shanghai last year, with a contractual investment totaling US$225 million.  Up to now, total investment from Taiwan has accumulated to US$4.188 billion in Shanghai, which makes it the eighth largest of Shanghai's foreign investors. As for sectoral details of the investment, I can provide details to reporters after this conference, as I do not have the data to hand.

7. Asahi Shimbun:  I have two questions.  The first one is about the tertiary sector.  As previously disclosed in today's press conference, the growing added value of this sector has allegedly reached 50.2 percent of the city's total. Could you give details of some of the areas reporting outstanding performance?
My other question concerns the World Expo.  The 11th "Five-Year" period is the last five-year plan prior to the 2010 World Expo. In this plan, Shanghai Mayor Han Zheng has pledged an "unforgettable Shanghai Expo".  What is the key challenge Shanghai faces in its preparation for visitors from across the world at that time ?

Pan Jianxin: The tertiary sector has accounted for 50.2 percent of the city's total growth in added value.  Added value from the sector saw a year-on-year increase of 13.8 percent in 2005 to 58.1 billion yuan.  Large-scale industries reporting larger output include transport, storage and postal services. 

The information transmission, computer and software industries generated some 34.883 billion yuan, an increase of 14.6 percent, while wholesale and retail industries reported 88.395 billion yuan, a rise of 12.6 percent.  The financial industry reported 68.987 billion yuan, growth of 11.6 percent, and the housing sector harvested 67.023 billion yuan, a drop of 4.1 percent. Hotels and catering came in at 17 billion yuan, a jump of 13 percent, and personal services contributed 8.425 billion yuan, up 12.9 percent.  Other sub-sectors, including science, education, culture, health, sports, agency and business services, reported a combined added value of 120.898 billion yuan, an increase of 12.7 percent.

Cai Xuchu: I would like to add one more point, as Director As Pan has already given a detailed description of the tertiary sector.  The sub-sectors that have made the biggest contribution to economic growth are wholesale (11.1 percent of total growth) and finance (7.7 percent) as well as business services.  It is the fast growth of these sectors that have driven up the development of the tertiary sector as a whole.

Jiao Yang: The reporter from Asahi Shimbun is obviously very interested in Shanghai Expo 2010, and he quoted Mayor Han's remarks that Shanghai is using every means available to honor its commitment to make the Expo an unforgettable and exiting event.  We are very grateful to this reporter from Asahi Shimbun for his concern and attention to this event. 
The Chinese government pledged during the bidding process that a successful, exciting and unforgettable Expo 2010 would be presented to the whole world in Shanghai.  Since winning the bid, we have been working hard to honor our commitments and we will continue to do so.

To stage an unforgettable World Expo requires great efforts from both the host country and internationally, and this applies to Shanghai in 2010. The city is aiming to attract 200 countries, regions and international organizations to participate and cater for up to 70 million visitors to the 5.28-square-kilometer Shanghai Expo Park. These were the targets set out at the beginning of the bidding process.  If they are fulfilled, then this Expo will surely be the most successful, exciting and unforgettable ever.

Preparations are underway to provide a rich variety of activities and shows at the expo. This will be a feast not only showing the wisdom of people in Shanghai or China, but of those in every country of the world.  
The second after we won the bidding, we came to realize that this was an honorable but tough task for Shanghai.  The organizers are working hard to showcase the results and achievements of global scientific research, cultural development and civilization, and to attract interest and participation from all over the world.  

I still recall my own experience in a government mission when, with several other local officials, I went to Japan last year for the 2005 Aichi Expo, in order to gain as much experience as possible.  These experience are really useful to us when our Expo is on the way. The Aichi Expo was surely a very successful one as it gained support and participation from 120 countries and international organizations, including China. 
So, we hope this reporter from Asahi Shinbum, as well as all the journalists present here from both China and abroad, will be active in helping to promote the 2010 Shanghai Expo so as to boost its global awareness and attract more participants and visitors.  Thank you so much.
Meanwhile, the organizers are working hard to showcase the results and achievements of global scientific research, cultural development and civilization, and to attract interest and participation from all over the world.

8 Jiefang Daily: The economic figures released with the statistical bulletin of the year 2005 have been adjusted according to the latest research and analysis of the city's economy.  May I have the figures for the increased ranges during the years before the 10th Five Year plan? As Director Pan mentioned just now, the average adjustment during the 10th Five Year plan period was 11.5 percent. 
After the adjustment on certain figures for GDP in 2005, according to the latest research and analysis some indexes will rise and some will fall. Can you identify which ones?
Lastly, can Director Pan make a brief forecast for economic trends in 2006?  It can be seen from the bulletin that the profits of industrial enterprises declined last year.  Will this have any impact on the 11th Five Year plan for the city as we move forward?  Thank you.

Cai Xuchu:  The GDP index stated in the statistical bulletin of this year is gleaned from economic research undertaken in 2004.  As for the increasing rate of growth of the economy, we made adjustments to the results of the 2004 research before we published the GDP index.  Also, to meet the requests of the central government, we will make adjustments to some figures in the historical record.  The GDP index for 2004 in the recently released bulletin was 62.25 billion yuan more than in the original one.  This requires us to make adjustments to its rate of increase.  As this 62.25 billion yuan results from the accumulation of past figures, we have to make adjustments to these figures too.
According to the central government, figures generated after 1992 need adjusting as those of previous years were adjusted after research and analysis on the Tertiary Industry of the city.  So, figures relating to this adjustment are those generated between 1992 and 2005.
Now, the average upward adjustment for the 10th Five Year plan period is still being calculated.  We will publish this figure as soon as it's settled.  We might forecast a slight increase on the average yearly growth rate during that period according to the figures already published by the central government, which show an upward adjustment of 0.4 percent.  However, the adjustment for the city won't be faster than the average for the country.

The related targets will surely change after the adjustments are made upon the results of the research.  After analysis, we realize that some changes might be good for the original index, some not. 
The benefits come from the targets relating to resource consumption.  Let's put it in concrete terms.
The consumption of standard coal per 10,000 yuan of GDP has fallen from 1.03 tons to 0.95 tons, water consumption from 150 m3 to 138 by the same measure.
However, the targets relating to investment are more difficult to fulfill then before.  For example, the  share of GDP taken by R&D expenditure fell from 2.29 percent in 2004's initial figures to 2.11.  And the share of environmental protection investment was down from 3.03 percent to 2.79 percent.
These are both the result of the adjustments to certain targets. 
Now, I will release the figures for the above items of 2005. 
Standard coal consumption per 10,000 yuan of GDP is 0.93 tons.
Water consumption per 10,000 yuan of GDP is 125 m3
Environmental protection input as a proportion of GDP is 3.07 percent.
R&D input as a proportion of GDP is 2.34 percent.

Pan Jianxin：The local economy has maintained a double-digit growth rate for 14 consecutive years, laying a solid foundation for the city's continued development over the period of the Eleventh "Five-year" Plan (2006-2010). My personal view is that the city will continue along a moderately fast growth path in 2006 as long as no unexpected events occur. Firstly, external influences are to the advantage of the city's economic development, with the global economy expected to remain stable this year. Meanwhile, it is widely predicted that China's economy will sustain its growth momentum in 2006. Secondly, let's take a look at different sectors of local economy. Both the market and cost factors will continue to influence the growth rates of some key secondary sectors such as automobile and petrochemical industries, and therefore their profitability. However, these factors may have less impact on the industries in 2006 than they did in 2005. It is necessary to look into the factors which contributed to the profit declines of local manufacturing companies in 2005. The profit reaped by the local secondary sector fell 10.8 percent to 93.9 billion yuan in 2005. The decline is a natural reaction, considering that it was against a background of two years of strong profit growth (46.1 percent for 2003 and 23.6 percent for 2004) in the sector. There are also other considerations. The revenue growth of the main businesses of some companies slowed down last year due to sluggish sales and price increases. Local manufacturing companies reported revenue growth of 18.3 percent last year, down 6.4 percent from 2004. The wholesale prices of local manufactured products rose 1.7 percent in 2005, compared with a 3.6 percent growth rate in 2004. Another reason is production costs. The purchase prices of fuels and raw materials increased 6.8 percent in 2005. The fact that some key industries performed below expectations last year also contributed to the profit declines. Let me give you some examples. The automobile industry posted a 47 percent drop in profits in 2005; influenced by softening demand both at home and abroad, the electronics industry suffered profit declines in 2005; and the petrochemical industry was impacted by soaring global oil prices. All these negative factors are likely to have less impact on the sector this year. There is also some good news regarding the local economy. Some newly-founded companies (for example a joint venture between Shanghai Baosteel Group and Nippon Steel Corporation, Shanghai Saike Petrochemical Corporation, and a venture launched by German chemical products company BASF) have the potential to expand their capacities this year. Since many of these companies began operating in the second or third quarter of last year, increases in their productive capacities will spur overall economic growth. In addition, industries like equipment manufacturing, steel and biomedicine are growing steadily. Thus we can predict that the local manufacturing sector will maintain a high growth rate in 2006. As for the tertiary sector, the local shipping industry received a boost from the opening of Yangshan deep-water port; the local financial industry will soon enter a new phase of development after the People's Bank of China, the country's central bank, officially opened its second headquarters; and the modern service sector will develop rapidly, as the city is stepping up efforts to implement its "guidelines on promoting the modern service sector". As to market demand this year, local fixed investment will increase, mainly because a huge amount of money will pour into infrastructure projects; commodity sales are expected to show steady growth; and local export growth will continue thanks to a stable global economy and a sound global trade environment. The government's policies are favorable to local economic development. The central government's macroeconomic policies are stable. The country has recently issued a series of measures to stimulate technological innovation, while the city has adopted new regulations to promote the modern service sector and manufacturing industry. There is still room for improvement in the "18 incentives to encourage innovation", which was introduced by the municipal government several years ago. We will take action to overcome challenges facing the economy (for instance some manufacturing industries are still suffering from profit declines and the problem of limited resources remains), and firmly believe the city can achieve steady economic growth.

9. Yomiuri Shimbun: I have a question about a report I read before the Spring Festival. Three teenage students were killed in a traffic accident on the way to school in Chongqing. Of the students, two were city natives and one came from a rural village. The accident was a disaster for the students' families, but what made the story even more tragic was the unequal treatment when it came to compensation. The families of the city dwellers each received about 200,000 yuan in compensation, while the other family was paid about 70,000 yuan, or less than half. Many migrant workers are living in Shanghai now. I'd like to know whether such an accident has ever occured in Shanghai, and has the government set any regulations about compensation payments to migrant workers? Those are my two questions. Thank you.

Jiao Yang: It's difficult for us to comment on this case as we are not familiar with it. The government holds that all cases should be handled in accordance with law. As to your question concerning migrant workers, you may have noticed that Director Pan has just mentioned in his speech that Shanghai has started an insurance program for local migrant workers.
So far, 2.4765 million people have been insured. This is a significant number. The municipal government is pursuing a policy of promoting the insurance program for migrant workers while at the same time trying to improve the existing insurance systems for the local urban and suburban population. With the new arrangements and the relevant state laws and regulations, I believe all city residents, including rural people and migrant workers, will be assured of their basic rights. Is my answer satisfactory?

Finally, since many reporters have asked questions relating to the government's emission reduction program, I'd like to add something. More than 260,000 vehicle owners had applied for and received stickers to certify their cars are environmentally friendly by February 6, accounting for 40 percent of the estimated total. In addition, local environmental protection authorities had appraised 240 automobiles by February 7. However, quite a number of vehicle owners have yet to apply for the stickers. I hope that both local vehicle owners and drivers from other provinces will apply for the stickers before the deadline (February 15) lest there be any possible inconvenience and displeasure. A hotline (6469-5377) was set up to provide car owners with information. You can also visit the environmental protection authority's website (www.sepb.gov.cn). The authority has opened 24 outlets for the ascertaining of whether the emission level of a particular vehicle fulfills the emission standard. Some citizens may not be familiar with the application procedure, please call the hotline or visit the website. Well, today's press conference is over. Thank you.