On January 30, Yan Ping, a member of the CPPCC Guangxi Zhuang Autonomous Region Committee, attended Xinhua Salon

Host: Good morning/afternoon/evening, everyone, welcome to "Xinhua Salon", this is the special report on Guangxi's "two sessions" in 2015. Today we have Yan Ping, member of the CPPCC Guangxi Zhuang Autonomous Region Committee and Party secretary of Guangxi Yuchai Machinery Group Co., Ltd. Welcome.

Yan Ping: Good morning/afternoon/evening.

Host: Please tell us the main difficulties in the reforms of state-owned enterprises from the perspective of comprehensive deepening of reforms?

Yan Ping: As for the main difficulties and problems faced by state-owned enterprises in reforms, one is handling of property relations. During deepening reforms, state-owned enterprises expect to clarify the relations with government public administrative departments and state-owned assets supervision departments by reforming the assets management system, and properly handle the relations between standardized management and operation efficiency, to acquire greater enterprise autonomy. The other is over capacity, lack of demand and cost rise. Enterprises in different industries differ in over capacity and need to be treated differently by government departments

Host: In which fields are reforms yet to be pushed forward by the government in order to implement the strategy of "prospering Guangxi by industry" and accelerate Guangxi's new industrialization?

Yan Ping: To promote the development of Guangxi's new industrialization and promote the implement the strategy of "prospering Guangxi by industry", we expect the government to push forward the reforms in the following two fields:

I Industrial structure optimization and adjustment. Efforts should be made to vigorously develop advanced equipment manufacturing, improve the capability and level of new product R & D and constantly launch high-end new products; to vigorously develop the cyclic economy, advance the coupling of enterprises and industries, encourage industrial agglomeration, and construct a cyclic characteristic industrial system; to accelerate the development of productive service industries, vigorously develop modern services for industrial production such as financial service, information service and logistics service, promote the coordinated development of advanced manufacturing and service industries, and constantly improve the capability of service support for industrial transformation and upgrading.

II Deepening fields of open cooperation. Efforts should be made to bring Guangxi's location advantage into play, promote industrial cooperation between Guangxi and the outside, deepen the reform of economic opening-up in Guangxi, adhere to "exchanging space for time, exchanging resources for industries and exchanging stock for increment", actively employ the international and domestic markets and resources, give full play to the advantages in location and resources, and initiatively integrate with advanced areas in funds, technologies, talents, management and markets, to form practical productive forces; to cement interprovincial and regional industrial cooperation, further fulfill interprovincial cooperation agreements such as Guangdong-Guangxi, Guizhou-Guangxi and Hunan-Guangxi cooperation agreements, be connected with the Guangdong-Hong Kong-Macao Economic Circle, give full play to Hong Kong's role as an Asia-Pacific financial and business center, organize diverse industrial connection activities, and advance the construction of the Guangdong-Guangxi Interprovincial Pilot Cooperation Special Zone, and accelerate industrial development and distribution targeting the ASEAN market with focus on ASEAN countries and bilateral economic cooperation zones; to comprehensively advance the strategy of "going out", encourage Guangxi's industrial enterprises to cooperate with renowned foreign enterprises in various ways, and fast cultivate multinational enterprises with independent intellectual property and internationally renowned brands; and to promote superior enterprises to invest abroad and establish overseas industrial bases and R & D centers.

Host: Do you have any opinion or suggestion on the autonomous region's "two sessions" this year?

Yan Ping: I made two proposals at the autonomous region's "two sessions" this year: one is about the upgrading of diesel engine emission standards and the other is about the logistics development of Beibu Gulf Border Trade Area.

In recent years, mass haze has drawn continuous public attention to air pollution. Domestic technologies meeting the requirements of constant upgrading of vehicle emission standards are yet to be mature and upgrading costs are high. I have four suggestions in the first proposal: I A project group should be established in light of China's actual situation of pollution treatment and actual working conditions to work out China's own motor vehicle VI and non-vehicle V emission standard systems; II Emphasis should be laid on medium & heavy-duty commercial trucks and construction machinery in emission control and reduction; III The government should grant appropriate purchase subsidies for independent-branded products up to the national VI and off-road T4 emission standards; IV The policy of subsidy drive should continue three to five years until the expiration of the national VI standard, and vehicles up to higher emission standards should be encouraged to be purchased earlier. Vehicle purchase should be subsidized differently based on costs and applications of emission upgrading.

My second proposal is about the logistics bottleneck of Beibu Gulf Border Trade Area. It is suggested that relevant state departments should organize the formulation of the construction and development plan of Beibu Gulf Border Trade Area, and include it in the framework of China-ASEAN Free Trade Area for unified planning, construction, operation and coordination, so as to speed up construction, improve efficiency, and lay a more solid foundation for removing the bottleneck of international logistics in the bilateral trade between China and ASEAN, implementing various policies and measures to reduce charges and examination items, encouraging logistics enterprises to take active part in the construction of Beibu Gulf Border Free Trade Area, carrying out international logistics business, and promoting the economic development of China and ASEAN.

Host: Guangxi is advancing the strategy of "dual drive", how will Yuchai Group seize the opportunity?

Yan Ping: The autonomous region's strategy of "dual drive" accords with the objective reality of the economic new normal, and meets the intrinsic requirement of quality improvement and benefit increase. To promote the implementation of the development strategy of "dual drive", Yuchai Group focused on:

I Proposing the second startup focusing on transformation and upgrading, and repositioning the development direction, development emphasis and industrial pattern.

II Perfecting the construction of the enterprise management and control system, advancing the organic combination of risk control and internal control, and strengthening financial management to ensure the effect of capital operation. Constructing the system of total risk management to lay the foundation for transformation and upgrading.

III Adhering to innovation drive, introducing high-end talents and improving manufacturing capacity to promote Yuchai to gradually transform from traditional manufacturing to high-technology-content, high-efficiency and high-efficiency and high-value-added new manufacturing.

Host: Affected by the macro economy in recent two years, many domestic enterprises declined, what about Yuchai? Yuchai initiated the second startup last year, are you satisfied with the work over the past year?

Yan Ping: Yuchai achieved desired business performance in 2014. Commendably, amid the market depression and fierce competition, all Yuchai constructors forged ahead and worked hard with great courage and morale. Through the Party's mass-oriented education practice, discussion and studies on the "second startup", cadres and staff's team cohesion was enhanced, cadres' style was improved fundamentally, they are brave to take on heavy responsibilities; technical workers worked passionately, made innovation and created benefits on their posts. In 2014, Yuchai Group achieved sales revenues of over 40 billion yuan, developed steadily and healthily overall, and achieved the year-on-year growth of engine, lubricant and parts sales.

Host: In 2015 which saw an economic shift and strict environmental management, Yuchai will face a new development opportunity and must overcome a lot of challenges. What are Yuchai's ideas and measures for 2015?

Yan Ping: After three years of steady development, it is time for Yuchai to "draw the sword". This year, Yuchai will speed up its internationalization and has achieved substantial breakthrough in strategic cooperation with some internationally renowned enterprises. In June and July, the "sword" Yuchai has sharpened for three years will come into use, an array of major cooperative projects will be initiated, and Yuchai's capacity for internationalized operation will be improved significantly.

We will focus on industrial restructuring, adhere to the principles of flexible operation and benefit first, and advance the "second startup" in an all-round manner; and will push forward reforms, innovation and system reengineering unswervingly to enhance core competitiveness. In 2015, as an organic life entity, Yuchai must make great efforts on spiritual structuring and values cultivation, carry forward the sprits of "self-improvement, diligence, reform & innovation and responsibility".

Host: With the NPC and CPPCC sessions around the corner, what measures do you expect the country to take in economic and political reforms?

Yan Ping: I am concerned about two issues. One is how to promote state-owned enterprises to transform, upgrade and enhance the capacity for independent innovation, and the other is how to advance the integration of state-owned enterprises' external resources and the open market-based restructuring of state-owned enterprises? How to comprehensively deepen reforms is worth expectation. I have five suggestions: I Accelerating policy release and give play to the effects of policies early; II Appropriately increase public investment and prevent investment plunge; III Perfecting the policy system and effectively addressing the problem of over capacity; IV Implementing a stricter environmental protection system; V Optimizing the methods of state-owned assets supervision.

I believe the country and Guangxi's relevant systems and policies will somewhat stabilize the national economy and local economies to maintain the new normal of economic development.

Host: Thank you for sharing your impressive views, thanks!

Yan Ping: Thank you.

(Xinhuanet Guangxi)