On September 26, General Secretary Xi Jinping presided over a meeting of the Central Political Bureau of the Communist Party of China. The meeting focused on analyzing the current economic situation and outlining the next steps for economic work. Xi emphasized the need to “focus on key areas, take proactive measures, effectively implement existing policies, and enhance new policy initiatives. We must further improve the relevance and effectiveness of policy measures to strive to meet the annual goals for economic and social development.” He also highlighted the importance of “fully stimulating the enthusiasm, initiative, and creativity of the entire society in driving high-quality development, promoting a sustained recovery and improvement in the economy.”

Implementation is key—while strategy is important, it is the execution that truly matters. In every region and department, there’s a heightened sense of responsibility and urgency to drive economic progress. The collective effort is focused and determined, systematically implementing a comprehensive package of new policies to forge a strong momentum for high-quality development.

Starting today, we will launch a special column titled “Prioritizing Action to Boost Sustainable Economic Recovery.” Our reporters will delve into the grassroots, visiting construction sites, industrial parks, businesses, and workshops to witness firsthand the spirit of hard work and innovation among local officials and citizens. We’ll document the vibrant practices that reflect the overarching trend of an improving economy and a transitioning structure while conveying steadfast confidence in completing this year’s economic and social development goals.

At the Wuhan Port in the middle reaches of the Yangtze River, an operator sits in front of a screen, deftly maneuvering handles as though engaged in a game of claw machines, remotely operating containers.

“This is our newly upgraded remote control system. One person can now operate two gantry cranes simultaneously, significantly enhancing our operational efficiency,” said Zhou Wei, head of investment and development at Hubei Port Group, who has been particularly busy recently with the influx of new port machinery and vessel equipment.

The push for large-scale equipment upgrades and the “two new” initiatives (replacing old with new) links supply and demand, benefitting both enterprises and consumers while addressing immediate needs and long-term benefits.

By leveraging favorable policies, Hubei Port Group has intensified its equipment upgrades, currently reporting 18 “two new” projects with a total investment of 5.779 billion yuan.

“Upgrading equipment does increase costs,” Zhou admitted. “For example, transitioning from an old fuel-powered vessel to an electric one can raise expenses by over 30%. Initially, there were concerns from the company.”

Fortunately, timely policy support has arrived: Hubei has implemented measures to increase the subsidy for the purchase of equipment for key industrial projects from 8% to 10%. Additionally, a special loan of 20 billion yuan is allocated for technological innovation in private enterprises, alongside a one-time subsidy for operational vehicle and vessel upgrades completed within a specified timeframe.

The challenge of recycling old equipment has also been addressed effectively. The establishment of Hubei’s public information service platform for the shipbuilding supply chain allows ship owners, shipyards, and recyclers to connect seamlessly.

“This ensures precise matching of supply and demand while reducing transaction costs and facilitating the centralized handling of resources like scrap metal and machinery,” explained Deng Chaofeng, General Manager of Hubei Yangtze Shipbuilding Supply Chain Co., Ltd.

The benefits of these policies quickly translate to the supply side. At Huagong Technology Industry Co., Ltd., orders for smart manufacturing equipment for new energy vessels and electric vehicle batteries have significantly increased. “By seizing opportunities from the ‘two new’ policy, we’re proactively engaging with clients about equipment upgrades and accelerating our R&D efforts,” noted Xiong Wen, Vice President of the company.

However, equipment upgrades and production capacity improvements require simultaneous efforts on the consumer side as well.

“In lieu of a fuel vehicle, we can receive a 20,000 yuan subsidy, which makes it a great deal,” said consumer Fu Mingyu, who recently purchased a new energy vehicle at an automobile sales service center in Wuhan.

After launching campaigns for automobile “energy swaps,” “smart upgrades” for home appliances, and renewals for kitchen and bathroom renovations, Hubei has also introduced a new scheme to manage the allocation and utilization of special bonds for replacing old consumer products, increasing the available funds from about 1 billion yuan to 6.666 billion yuan.

As of August this year, total investments in equipment upgrades across eight key sectors in Hubei reached 251.7 billion yuan, a year-on-year increase of 22.2%. The old-for-new consumer goods initiative has benefitted nearly 800,000 consumers, driving new car and home appliance sales to nearly 20 billion yuan. By the end of this year, Hubei aims to achieve the scrapping and replacement of 45,000 and 125,000 automobiles, respectively, along with 1.7 million sets of home appliance upgrades.

“By engaging all aspects of production, recycling, and service, we will continue to drive large-scale equipment upgrades and the old-for-new initiative in key industries, striving to convert the advantages of existing economic stock into a massive force for boosting domestic demand,” stated Li Donghui, Director of the Hubei Provincial Development and Reform Commission.

(Interviewer: Qiang Yuwen)