Cctv newsAccording to the website of the Ministry of Finance, the Ministry of Finance issued the Report on the Implementation of Fiscal Policy in China in 2023. Details are as follows:

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　　The year 2023 is the first year to fully implement the spirit of the 20th National Congress of the Communist Party of China, and it is also a year of economic recovery and development after three years of epidemic prevention and control in COVID-19. Under the strong leadership of the CPC Central Committee with the Supreme Leader as the core, all localities and departments thoroughly implemented the spirit of the 20th Party Congress and the Second Plenary Session of the 20th CPC Central Committee, adhered to the general tone of striving for progress while maintaining stability in accordance with the decision-making arrangements of the CPC Central Committee and the State Council, comprehensively deepened reform and opening up, intensified macro-control, focused on expanding domestic demand, optimizing the structure, boosting confidence, and preventing and defusing risks. China’s economy rebounded to a good and high-quality development, and made solid progress in building a socialist modern country in an all-round way.

　　The financial departments at all levels adhere to the guidance of the Supreme Leader’s Socialism with Chinese characteristics Thought in the New Era, follow the decision-making arrangements of the CPC Central Committee and the State Council, intensify efforts to improve efficiency, implement a proactive fiscal policy, strengthen financial management supervision, and combine macro-control, focus on expanding domestic demand, foster new development momentum, and prevent and resolve risks, thus effectively promoting the sound and high-quality development of China’s economic operation.

　　First, support the development of business entities. At the beginning of the year, we will clearly continue and optimize some tax and fee policies, and in the second half of the year, according to the changes in the economic situation, we will continue, optimize and improve a number of expired tax and fee policies to further reduce the tax burden of business entities and accurately support the high-quality development of the real economy such as manufacturing. In the whole year, the new tax reduction and fee reduction and tax refund deferred fees exceeded 2.2 trillion yuan. We will promote government financing guarantee institutions at all levels to increase credit support for small and micro enterprises. In the whole year, the scale of new re-guarantee cooperation business of the national financing guarantee fund was 1.31 trillion yuan, up 8.67% year-on-year. We will carry out pilot projects to transform small and medium-sized enterprises into digital cities, continue to do a good job in financial awards and subsidies for specialized and innovative small and medium-sized enterprises, actively play the leading role of government investment funds, and continuously enhance the momentum of enterprise innovation and development.

　　The second is to focus on expanding effective domestic demand. We will continue and optimize the vehicle purchase tax reduction and exemption policy for new energy vehicles, and support the construction and operation of charging and replacing infrastructure. The annual sales of new energy vehicles increased by 37.9%. We will introduce preferential tax and fee policies to support the development of the national film industry and promote the consumption of the service industry. Efforts will be made to build the circulation network of key cities, build the rural commercial and trade circulation system, and newly support 10 cities to implement the national comprehensive freight hub to supplement the chain and strengthen the chain, and continuously smooth the logistics network. Newly supported 15 cities to carry out demonstration of sponge city construction, improve urban drainage and waterlogging prevention capacity, and enhance urban resilience. We will speed up the issuance and use of local government special bonds. A total of 3.7 trillion yuan of new special bonds were issued for project construction throughout the year, and more than 35,000 projects were supported, which led to the expansion of effective investment.

　　The third is to speed up the construction of a modern industrial system. Increase investment in basic research and fully guarantee key core technologies. Increase the pre-tax deduction ratio of R&D expenses of enterprises in qualified industries from 75% to 100%, and implement it as an institutional arrangement for a long time to guide manufacturing enterprises and other enterprises to increase R&D investment. Give play to the role of relevant special funds in the manufacturing sector and focus on supporting the high-quality development of the manufacturing industry. We will introduce a policy of adding and deducting value-added tax for advanced manufacturing enterprises to further reduce the tax burden of enterprises in relevant key industrial chains.

　　The fourth is to continuously strengthen the protection of people’s livelihood. We will continue to reduce unemployment insurance and industrial injury insurance rates, continue to implement the steady return of unemployment insurance, optimize and adjust the one-time employment subsidy policy, and promote the overall improvement of the employment situation. The average unemployment rate in urban surveys in the whole year decreased by 0.4 percentage points over the previous year. We will improve the funding guarantee mechanism for compulsory education, continue to implement the policy of interest-free and deferred repayment of principal for national student loans, and substantially increase the upper limit of the amount of national student loans for junior college students and graduate students. We will raise the funds for basic public health services and the per capita financial subsidy standard for urban and rural residents’ basic medical insurance, steadily implement the national overall planning of basic old-age insurance for enterprise employees, and timely release 156.683 billion yuan of relief subsidies for people in need, so as to further secure social security. An additional 1 trillion yuan of treasury bonds will be issued specifically for post-disaster recovery and reconstruction and to enhance disaster prevention, mitigation and relief capabilities.

　　The fifth is to comprehensively promote rural revitalization. We will strengthen the stable production and supply of grain and important agricultural products, build, transform and upgrade high-standard farmland, grant a one-time subsidy of 10 billion yuan to actual grain farmers, improve the subsidy policy for corn and soybean producers, and expand the implementation scope of full cost insurance and planting income insurance for the three major grain crops. The central government’s convergence will further increase the subsidy funds for rural revitalization, giving priority to the development of rich agricultural industries in the agricultural belt. We will implement a new round of policies to develop a new rural collective economy, carry out a demonstration of centralized and contiguous protection and utilization of traditional villages, and further promote comprehensive rural reform.

　　Sixth, we will continue to strengthen the construction of ecological civilization. Adhere to the coordinated promotion of carbon reduction, pollution reduction, green expansion and growth, fight the defense of blue sky, clear water and pure land, implement and improve the subsidy policy for clean heating in winter in northern China, include 12 cities in the pilot area of rural black and odorous water treatment, increase the construction of horizontal ecological compensation mechanism in river basins, strengthen the management and protection of ecosystems, support the development of seven integrated protection and restoration projects of mountains, rivers, lakes, grass and sand, and enhance the diversity and stability of important ecosystems such as forests, grasses, mines and oceans.

　　First, the financial operation is generally stable and the budget implementation is good.

　　Benefiting from the economic recovery, coupled with the implementation of large-scale value-added tax rebate in 2022 to lower the base, fiscal revenue resumed growth in 2023; We maintained necessary expenditures, strengthened financial support for major national strategic tasks, and strengthened support for key areas such as tackling key scientific and technological problems, rural revitalization, and ecological and environmental protection. The annual budget implementation was generally good.

　　(1) The economic recovery is improving, and the fiscal revenue has resumed growth.

　　In 2023, the national general public budget revenue was 21,678.4 billion yuan, a year-on-year increase of 6.4%. Among them, the central general public budget revenue was 9,956.6 billion yuan, a year-on-year increase of 4.9%; The local general public budget revenue at this level was 11,721.8 billion yuan, a year-on-year increase of 7.8%. In terms of regions, the income of the eastern, central, western and northeastern regions increased by 6.7%, 6.9%, 10.7% and 12% respectively, and the fiscal revenue of all 31 provinces in China achieved positive growth.

　　In terms of tax revenue, in 2023, the national tax revenue was 18,112.9 billion yuan, up 8.7% year-on-year. Among them, the domestic value-added tax was 6,933.2 billion yuan, up 42.3% year-on-year, mainly due to the large amount of tax rebates left over last year and the low base. The domestic consumption tax was 1,611.8 billion yuan, down 3.5% year-on-year. Corporate income tax was 4,109.8 billion yuan, down 5.9% year-on-year. Personal income tax was 1,477.5 billion yuan, a year-on-year decrease of 1%. Stamp duty was 378.4 billion yuan, a year-on-year decrease of 13.8%. In terms of non-tax revenue, in 2023, the national non-tax revenue was 3,565.5 billion yuan, down 3.7% year-on-year.

　　(two) to maintain the necessary expenditure intensity, key areas have been effectively guaranteed.

　　Financial departments at all levels should strengthen the overall planning of financial funds, optimize the combination of financial deficits, special debts, interest subsidies and other tools, and maintain the necessary expenditure intensity. At the beginning of 2023, the fiscal deficit ratio will be arranged at 3%. In order to support post-disaster recovery and reconstruction, and enhance the ability of disaster prevention, mitigation and relief, the National People’s Congress Standing Committee (NPCSC) approved the issuance of 1 trillion yuan of treasury bonds in the fourth quarter, all of which were arranged to local governments through transfer payments. In the whole year, the national general public budget expenditure was 27,457.4 billion yuan, an increase of 5.4%. Among them, the central general public budget expenditure at this level was 3,821.9 billion yuan, an increase of 7.4%; The local general public budget expenditure was 23,635.5 billion yuan, an increase of 5.1%. We will continue to optimize the expenditure structure, strengthen financial support for major national strategic tasks, and give strong support to key areas. Social security and employment expenditure increased by 8.9%, education expenditure by 4.5%, science and technology expenditure by 7.9%, agriculture, forestry and water expenditure by 6.5%, and urban and rural community expenditure by 5.7%.

　　(3) Firmly adhere to the concept of living a tight life and continuously improve the efficiency of financial resource allocation.

　　Taking the party and government organs to live a tight life as a long-term guiding principle of financial work runs through budget preparation, budget implementation, asset management, government procurement and other aspects. The central departments take the lead in living a tight life, strengthen the source control of budget preparation, strictly control general expenditures, strengthen the budget management of "three public funds" and reduce administrative operating costs. In 2023, the budget for the "three public" funds at the central level decreased by 20% compared with 2019. Strengthen the constraints of budget implementation, and solve the newly introduced policy of increasing expenditure and additional budgetary matters in accordance with the relevant provisions of the budget law. Evaluate the tight life of the central departments on a quarterly basis, link the evaluation results with the departmental budget arrangements, and promote the departments to be careful and thrifty. We will continue to urge local governments to strictly implement the requirements for a tight life, strengthen the management of funds and projects, strengthen daily supervision, and promote the standardized and efficient use of financial funds.

　　Two, strengthen the supply of fiscal and taxation policies, help the development of business entities.

　　Strengthen the study of countercyclical adjustment and policy reserve, continue, optimize, improve and implement the policy of tax reduction and fee reduction, innovate and improve the assistance measures, support the development of business entities to help them out, and promote the sustained recovery of the national economy and the overall recovery. In the whole year, the new tax reduction and fee reduction and tax refund deferred fees exceeded 2.2 trillion yuan, of which the new tax reduction and fee reduction was about 1.57 trillion yuan, and the tax refund was about 650 billion yuan. Small and medium-sized enterprises and manufacturing industries benefited the most.

　　(1) Optimize and improve the tax reduction and fee reduction policies.

　　First, make clear the follow-up arrangements for the preferential policies for expired taxes and fees as soon as possible. On the basis of comprehensive evaluation, we will continue, optimize and improve more than 70 preferential tax and fee policies in batches, and grasp the timing, intensity and rhythm. Most of the policies will continue directly until the end of 2027. We will continue to implement the preferential policy of reducing or exempting small-scale taxpayers’ value-added tax, expand the scope of individual industrial and commercial households enjoying a 50% reduction in personal income tax, uniformly levy "six taxes and two fees" on small and micro enterprises, and levy a 50% reduction in urban land use tax on the land used for bulk commodity storage facilities of logistics enterprises. We will focus on improving the quality of supply and expanding effective demand, focusing on supporting the development of small and micro enterprises and individual industrial and commercial households, strengthening and improving the real economy, promoting income and consumption to protect people’s livelihood, supporting high-level scientific and technological self-reliance, and supporting the stable

　　The second is to accurately implement the new preferential tax and fee policies. Focus on specific areas and key links, study and introduce new tax reduction policies in time, including increasing the proportion of R&D expenses plus deduction for integrated circuit and industrial mother machine enterprises, and enhancing the ability of scientific and technological innovation; Improve the special additional deduction standard of personal income tax for infant care, children’s education and support for the elderly under 3 years old, and further reduce the burden of family childbearing and support for the elderly; Give preferential taxes and fees to the construction transactions of affordable housing projects to support the protection and improvement of people’s livelihood.

　　(2) The employment policy of stabilizing posts has improved efficiency and strength.

　　The first is to strengthen financial support. In 2023, the central government issued an employment subsidy fund budget of 66.743 billion yuan, an increase of 8.1% over the previous year. Guide local governments to make good use of employment subsidy funds, unemployment insurance funds, vocational skills upgrading action funds, and support the implementation of various employment and entrepreneurship support policies. We will continue to implement demonstration projects to improve the public employment service capacity, so as to promote the overall improvement of the national employment service capacity.

　　The second is to increase efforts to help enterprises stabilize their posts. We will continue to reduce unemployment insurance and work-related injury insurance rates, continue to implement phased job stabilization policies such as the return of unemployment insurance and the early payment of employment trainee subsidies, and support business entities to solve problems and stabilize their jobs.

　　The third is to focus on the employment of key groups. Put the promotion of employment of key groups such as college graduates in a more prominent position, optimize and adjust the policies of one-time employment subsidy and one-time post expansion subsidy, continuously increase assistance and broaden employment channels. We will promote the stabilization and expansion of the scale of migrant workers, especially those who are out of poverty, strengthen employment assistance for disadvantaged groups such as the disabled and family members with zero employment, and improve the employment assistance mechanism.

　　The fourth is to strengthen vocational skills training. Relax the conditions for applying for skills upgrading subsidies, carry out the construction of national-level high-skilled personnel training bases and skill master studios, improve the skill level of workers, and alleviate structural employment contradictions.

　　The fifth is to support the incremental expansion of entrepreneurial guarantee loans. We will increase the interest subsidy for business guarantee loans, and allocate 7.948 billion yuan of interest subsidy and bonus funds for business guarantee loans throughout the year. The Measures for the Administration of Special Funds for Development in inclusive finance were revised and promulgated, which raised the upper limit of individual and small and micro enterprises’ entrepreneurial guarantee loans to 300,000 yuan and 4 million yuan respectively, and continuously increased financial support for entrepreneurial employment.

　　(3) Financing support continued to increase.

　　First, the incentive and compensation policy for financing guarantee fee reduction for small and micro enterprises was implemented in depth. In 2023, the central government issued 3 billion yuan of bonus funds to guide local governments to expand the scale of financing guarantee business for small and micro enterprises and reduce the financing guarantee rate for small and micro enterprises. Compared with before the implementation of the policy (2017), the number of financing guarantee businesses of small and micro enterprises increased by 245%, the annualized guarantee amount increased by 119%, and the annualized guarantee rate decreased by 97 basis points.

　　Second, the equity financing of small and medium-sized enterprises has been increasing. Give full play to the role of the National Small and Medium-sized Enterprise Development Fund (hereinafter referred to as the Small and Medium-sized Fund), and drive social capital to jointly support the innovative development of growing small and medium-sized enterprises in seed stage and initial stage. By the end of 2023, small and medium-sized funds had invested 36 Zhi Zi funds and 3 direct investment projects. Among them, the total subscription scale of 36 Zhi Zi Fund is about 98.8 billion yuan, and the subscription of small and medium-sized funds is about 26.94 billion yuan. The central financial funds are amplified by the mother and child funds, and more than 8 times of social funds are mobilized to jointly carry out equity investment in small and medium-sized enterprises. The sub-fund has completed more than 1,400 investment projects with a total investment of 47.8 billion yuan. Among them, the amount of investment in small and medium-sized enterprises in seed stage and initial stage accounted for 71.9%.

　　Third, the role of government financing guarantee re-guarantee institutions at all levels has been effectively played. We will steadily expand the re-guarantee business scale of the national financing guarantee fund. In 2023, the re-guarantee cooperation business scale of the national financing guarantee fund reached 1.31 trillion yuan, an increase of 8.67% year-on-year. Improve the government financing guarantee system. The State Financing Guarantee Fund cooperates with all 35 provincial re-guarantee institutions and more than 1,500 city and county guarantee institutions nationwide, covering 2,602 counties (districts). Reduce the financing cost of small and micro enterprises, and the average guarantee rate and loan interest rate of re-guarantee cooperation business will decrease in 2023.

　　(D) The function of government procurement policy is better played.

　　The first is to support industrial growth. Accelerate the construction of a government procurement support innovation policy system in line with international rules, formulate clear government procurement demand standards for seven types of products, including desktop computers, portable computers, integrated computers, workstations, general-purpose servers, operating systems and databases, and guide the innovative development of the information industry.

　　The second is to promote green development. Improve the standard system of government green procurement demand, and issue the "Implementation Guide for Government Procurement Supporting Green Building Materials to Promote Building Quality" to guide relevant cities to implement the policy requirements.

　　The third is to support small and medium-sized enterprises. Guide all localities and departments to strictly implement preferential policies and measures for reserved shares and price evaluation, and encourage large enterprises and small and medium-sized enterprises to form consortia or subcontract to further expand the contract share of small and medium-sized enterprises. The policy period of increasing the reserved share of government procurement projects for SMEs to more than 40% will be extended to the end of 2025. Provide commercial banks with government procurement information of central departments in a timely manner to facilitate the financing of government procurement for small and medium-sized enterprises.

　　The fourth is to help rural revitalization. Organize the central and local budget units to fill in the reserved share in 2023 and purchase agricultural and sideline products in poverty-stricken areas. By the end of 2023, budget units at all levels had purchased 10.6 billion yuan of agricultural and sideline products in poverty-stricken areas through the "832 platform".

　　Third, strengthen the guidance of innovation and promote positive progress in the construction of modern industrial system.

　　In-depth implementation of the innovation-driven development strategy, adhere to the priority protection of science and technology as the key areas of fiscal expenditure, and make overall use of policy tools such as financial subsidies, loan interest subsidies, tax incentives, etc., to enhance the toughness and safety level of the industrial chain, promote the high-quality development of the manufacturing industry, and significantly accelerate the construction of a modern industrial system.

　　(a) vigorously support scientific and technological innovation, high-level science and technology self-reliance and self-improvement to take steady steps.

　　First, investment in basic research continued to increase. In 2023, the central government spent 86.65 billion yuan on basic research, an increase of 6.6% over the previous year. We will improve the basic research investment mechanism combining competitive support with stable support, innovate scientific research funding methods, and support China Academy of Sciences to carry out pilot projects of stable support for outstanding young teams in basic research. Improve the diversified investment system of basic research and guide the whole society to increase investment.

　　Second, major national science and technology projects were implemented steadily. We will improve the financial fund management mechanism that adapts to the new national system of tackling key core technologies, fully guarantee the fund demand for tackling key core technologies, and support the layout and implementation of a number of strategic, overall and forward-looking major national science and technology projects. Effectively guarantee the organization and implementation of major projects in 2030, accelerate the arrangement of major scientific and technological projects, and promote China’s important achievements in artificial intelligence, quantum computing, brain science and other research fields.

　　Third, the national strategic scientific and technological strength has been further strengthened. Ensure the construction and development of national laboratories, increase stable support for central-level scientific research institutes, and promote the improvement of scientific research capabilities to undertake major national strategic tasks. Support national laboratories, national scientific research institutions, high-level research universities, and leading enterprises in science and technology to innovate together and form a joint force to enhance the overall efficiency of the national innovation system.

　　Fourth, new progress has been made in the construction of high-level scientific and technological talents. Support the training of more strategic scientists, first-class scientific and technological leaders and innovative teams around the major needs of the country. Promote the natural science foundation to move forward to the funding port, and encourage outstanding undergraduate students to undertake scientific fund projects.

　　(2) Actively promote the high-quality development of the manufacturing industry and continuously optimize the economic structure.

　　The first is to promote the upgrading of industrial basic capabilities and the optimization and upgrading of industrial chains. Through special funds for manufacturing, we will focus on key strategic industrial chains, support systematic research, accelerate the promotion of key technologies and key industries to make up for shortcomings, and improve the resilience and safety level of the industrial chain supply chain. Continue to implement the insurance compensation policy for the first (set) of major technical equipment and key new materials, and promote the popularization and application of innovative products of major technical equipment and new materials. Give play to the role of government investment funds in the manufacturing sector, guide social capital to increase investment in key areas of manufacturing, and promote industrial transformation and upgrading.

　　The second is to improve the tax policy that encourages enterprises to develop and innovate. The policy of adding and deducting value-added tax for advanced manufacturing enterprises will be introduced, and the proportion of adding and deducting R&D expenses for enterprises in integrated circuits and industrial machine tools industries will be increased to 120%, further reducing the tax burden of enterprises in relevant key industrial chains.

　　The third is to promote the digital transformation of SMEs. Organize and carry out pilot projects for small and medium-sized enterprises to transform into digital cities, and the central government will give a fixed reward of 1-150 million yuan to the pilot cities. In 2023, the pilot selection of the first batch of 30 small and medium-sized enterprises in digital transformation cities will be completed, and 3.01 billion yuan will be awarded to support the pilot cities to promote the deep integration of the digital economy and the real economy.

　　The fourth is to promote the high-quality development of specialized and innovative small and medium-sized enterprises. The central government allocated 1.27 billion yuan to support the high-quality development of specialized and innovative small and medium-sized enterprises. By the end of 2023, it had supported the high-quality development of 1,922 national key "little giant" enterprises, and promoted the cultivation of more than 12,000 national "little giant" enterprises and more than 100,000 provincial-level specialized and innovative enterprises.

　　Fourth, actively promote consumption and expand investment, and domestic demand will continue to recover and expand steadily.

　　Adhere to the strategic basis of expanding domestic demand, make overall plans to promote consumption and expand investment, and comprehensively use tax incentives, special funds, government bonds and other policy tools for production, circulation and consumption to promote consumption to show a good recovery trend, promote the expansion of effective investment, and promote the formation of a virtuous circle of mutual promotion between consumption and investment.

　　(1) Implement and improve fiscal and taxation policies and measures to promote the rapid recovery of household consumption.

　　First, continue and optimize the vehicle purchase tax reduction and exemption policy for new energy vehicles. Extend the vehicle purchase tax reduction and exemption policy for new energy vehicles to the end of 2027, and set tax reduction and exemption limits to support the stabilization and expansion of new energy vehicle consumption. In 2023, the sales volume of new energy vehicles reached 9.495 million, a year-on-year increase of 37.9%.

　　Second, special funds for the development of the national film industry will be exempted in stages. It is clear that from May 1, 2023 to October 31, 2023, the special funds for the development of the national film industry will be exempted. The exemption policy covers the three major periods of May Day, summer vacation and National Day, which effectively boosts industry confidence and helps the recovery of consumption.

　　Third, in-depth support for all localities to carry out county-level commercial construction actions. The central government allocated 4.24 billion yuan for the development of the service industry, continued to support the provinces (autonomous regions and municipalities) to carry out in-depth county-level commercial construction, and tilted to the weak areas in the central and western regions, guiding the localities to focus on the county-level rural commercial network system and rural logistics distribution, and speeding up the completion of the shortcomings of rural commercial facilities. In 2023, 1,044 county-level comprehensive business service centers, 4,195 township-level business centers and 45,353 village-level convenience stores were newly built and renovated. The retail sales of rural consumer goods reached 6.4 trillion yuan, up 8% year-on-year, and the growth rate was 0.9 percentage points faster than that of cities and towns.

　　(2) Give play to the leading role of government investment and promote the continuous optimization of investment quality structure.

　　In 2023, the amount of local government special bonds will be increased by 3.8 trillion yuan, giving priority to supporting projects with high maturity and projects under construction. Appropriately expand the investment scope of special bonds and the scope of project capital, include the transformation of villages in cities, 5G integration facilities, etc., and include heating and gas supply as the scope of project capital, encourage and attract social capital to participate, and promote a number of major projects such as transportation, water conservancy and energy that are beneficial to the present and the long term. Supervise and guide all localities to speed up the issuance and use, and give full play to the benefits of bond funds as soon as possible. At the same time, some new local government debt limits in 2024 will be issued in advance to support major project construction, promote the formation of physical workload, and give full play to the role of local government bonds in stimulating the economy.

　　Five, strengthen the people’s livelihood security, and strive to do a good job in people’s livelihood.

　　Adhere to the promotion of people’s livelihood and well-being in high-quality development, continuously increase investment in people’s livelihood, focus on solving the urgent problems of the people, and continuously improve the level of basic medical care, education, basic old-age care, and promote the continuous improvement of people’s lives.

　　(1) The construction of a high-quality education system has been solidly promoted.

　　First, investment in education has grown steadily. We will implement the financial investment requirement of "one is generally not lower than the other, and the other two will only increase but not decrease". In 2023, the national general public budget expenditure on education will be 4,124.2 billion yuan, an increase of 4.5% over the previous year. From 2012 to 2022, the proportion of national fiscal education expenditure to GDP remained above 4% for 11 consecutive years. The allocation of funds focuses on compulsory education, the central and western regions, teachers and students, and efforts are made to fill the shortcomings and weaknesses in the field of education.

　　The second is to help education equity advance steadily. We will raise the benchmark quota of public funds per student in compulsory education schools, from 650 yuan to 720 yuan in primary schools and from 850 yuan to 940 yuan in junior high schools. Support the implementation of the student nutrition improvement plan, benefiting about 35 million rural students. Strengthen the inclusive development of preschool education and special education, increase the supply of inclusive preschool education resources, and improve the basic conditions for running special education schools. Continue to improve the basic conditions for running ordinary high schools in counties, eliminate "large classes" and speed up the filling of shortcomings in ordinary high schools in counties. The implementation of national scholarships, tuition-free (miscellaneous) subsidies and other student aid policies benefited about 100 million people. We raised the maximum loan amount of the national student loan by 4,000 yuan, reduced the interest rate of the national student loan by 30 basis points, and continued to implement the national student loan interest-free and principal deferred repayment policy, benefiting about 11 million people.

　　Third, the ability of high-quality development of educational services has been effectively improved. In six provinces, we will carry out a pilot project of differentiated per-student funding system for vocational education based on major categories, and promote the construction of high-level vocational schools and majors with China characteristics. Optimize the expenditure structure of central universities, give preferential support to the reform and development of high-level research universities and the training of high-level talents and talents in short supply, and speed up the construction of world-class universities and advantageous disciplines with China characteristics.

　　(2) The level of social security has been steadily improved.

　　First, the old-age security system has been gradually improved. We will steadily implement the national overall planning of endowment insurance, and adjust the funds of 271.6 billion yuan as a whole throughout the year, effectively solving the current gap of local funds. The basic old-age pension for retirees will be raised according to the national overall ratio of 3.8%, and the central government will issue about 1 trillion yuan of subsidy funds to support the timely and full payment of basic old-age insurance benefits in various places. We will implement tax incentives for individual pensions and support the trial implementation of the individual pension system in 36 regions.

　　Second, social assistance and social welfare protection are more powerful. The central government issued a subsidy of 156.683 billion yuan to help needy people, supporting all localities to make overall plans to do a good job in subsistence allowances, assistance and support for destitute people, temporary assistance, assistance for vagrants and beggars, basic living security for orphans, and basic old-age service assistance for the disabled elderly. At the same time, efforts will be made to promote the renovation of old-age service facilities in urban and rural communities, and support all localities to coordinate the rehabilitation and care of the disabled, as well as the renovation of dilapidated buildings and earthquake-resistant renovation of rural houses for key targets such as low-income groups in rural areas.

　　Third, the investment in preferential treatment and pensions continued to increase. We will continue to raise the standard of pensions and living allowances for special care recipients. In 2023, the central government issued a subsidy of 65.58 billion yuan for special care recipients to continuously improve their living standards. The central government allocated 2.38 billion yuan for medical security for the special care recipients, subsidizing their insurance contributions, hospitalization and outpatient expenses. Through the central special lottery public welfare fund to support some special care hospitals to purchase commonly used medical (rehabilitation) equipment, etc., to enhance their service capabilities and better meet the medical and support needs of disabled veterans and other special care recipients.

　　(3) flood control and disaster relief work has been fully guaranteed.

　　First, allocate the central natural disaster relief funds efficiently and quickly. A total of 22 rapid pre-allocation mechanisms were launched throughout the year, with pre-allocation first and liquidation later, and a total of 12.175 billion yuan of central natural disaster relief funds were issued to support the affected areas in coping with major natural disasters such as typhoons, earthquakes and floods.

　　Second, the issuance of treasury bonds to support post-disaster recovery and reconstruction and the improvement of disaster prevention, mitigation and relief capabilities. In the fourth quarter of 2023, 1 trillion yuan of government bonds will be issued, all of which will be arranged to local governments through transfer payments. The funds are mainly used in eight aspects, including: post-disaster recovery and reconstruction in North China, focusing on Beijing-Tianjin-Hebei, and improving disaster prevention and mitigation capabilities; Key flood control projects focusing on the northern areas such as Haihe River and Songhua River Basin; Natural disaster emergency capacity improvement project; Other key flood control projects; Irrigation district construction and renovation and key soil erosion control projects; Action to improve urban drainage and flood prevention capacity; Construction project of comprehensive prevention and control system for key natural disasters; Construction of high-standard farmland in northeast China and disaster-stricken areas of Beijing, Tianjin and Hebei.

　　The third is to actively carry out winter and spring relief work for the affected people. The winter and spring relief work was deployed 20 days earlier than in previous years, and 4.846 billion yuan of winter and spring relief funds were allocated to the severely affected areas such as North China, Northeast China and South China, and the key counties for rural revitalization, the original deep poverty areas of "three districts and three States" and the cold and cold areas, so as to ensure the warmth of the affected people for the winter.

　　The fourth is to strengthen the management of disaster relief materials reserves. Timely release the 452 million yuan central emergency rescue and relief materials reserve procurement plan, enrich the reserve inventory, and prepare for emergency relief.

　　(four) to help the overall improvement of health care.

　　The first is to promote the continuous improvement of public health service capacity. The per capita financial subsidy standard for basic public health service funds has been raised in 5 yuan, reaching 89 yuan per person per year. The central government issued 72.509 billion yuan of basic public health service subsidy funds to support local governments to provide basic public health services such as health management for key populations and "two cancers" examination for rural women for all urban and rural residents. We allocated 20.88 billion yuan for the prevention and control of major infectious diseases, and strengthened the prevention and control of major infectious diseases such as AIDS and tuberculosis. We will implement demonstration projects of public hospital reform and high-quality development, select 15 cities to further promote Sanming’s medical reform experience according to local conditions, and the central government will subsidize 500 million yuan for each demonstration project. Promote the inheritance, innovation and development of traditional Chinese medicine, select 15 cities to implement demonstration pilot projects of inheritance, innovation and development of traditional Chinese medicine, and the central government will subsidize 200 million yuan for each project. We will implement demonstration projects for the development of inclusive child care services, select 15 cities to explore the high-quality development path of inclusive child care services, and the central government will subsidize 100 million yuan for each demonstration project.

　　Second, the level of basic medical security has steadily improved. The central government issued 384 billion yuan of medical insurance subsidies for urban and rural residents to support the consolidation and improvement of the basic medical security level. We will continue to raise the per capita financial subsidy standard for basic medical insurance for urban and rural residents, reaching 640 yuan per person per year, an increase of 30 yuan over the previous year. The central government issued 29.7 billion yuan of subsidies for urban and rural medical assistance, supporting all localities to subsidize eligible needy people to participate in basic medical insurance, and subsidizing their unaffordable out-of-pocket medical expenses, thus consolidating the guarantee of medical assistance.

　　The third is to promote the improvement of the primary health care service system. Support all localities to consolidate the achievements of the reform of the basic drug system. Support projects such as capacity building of county medical and health institutions, capacity building of medical services in high-altitude areas, and capacity improvement of township hospitals in the western region to enhance the service capabilities of various medical and health institutions at all levels. Support the implementation of rural order-oriented free training of medical students, county and rural health personnel capacity improvement training and other talent training projects, and increase support for grassroots medical personnel training.

　　(5) Promoting the improvement of the public cultural service system.

　　Support local governments to implement the national guiding standards for basic public cultural services and local implementation standards, and implement projects such as public welfare performances of operas, household access to radio and television, and the construction of county-level emergency broadcasting systems in young and old areas and underdeveloped areas, so as to improve the digital service level of public culture. Promote public cultural service facilities such as museums, memorial halls, public libraries and art galleries to be open to the public free of charge according to regulations, and improve the efficiency of basic public cultural services. Support the training and selection of cultural workers for hard and remote areas and grassroots frontline, and accelerate the construction of grassroots cultural talents. We will continue to arrange the National Art Fund, the National Publishing Fund, special funds for fine films and special funds for the high-quality development of TV dramas, and support the launch of fine masterpieces. Support the successful hosting of the Hangzhou Asian Games and the Chengdu Universiade, and promote the extensive development of the national fitness campaign.

　　Six, accelerate the pace of agricultural and rural modernization, and promote the coordinated development of urban and rural areas.

　　Adhere to the priority development of agriculture and rural areas, actively play the role of financial functions, effectively strengthen investment guarantee, optimize policy supply, and provide strong support for promoting the comprehensive revitalization of rural areas and accelerating the modernization of agriculture and rural areas. Implement major national regional strategies, implement new urbanization strategies, and promote coordinated regional development to a higher level and higher quality.

　　(1) The ability to ensure food security has been continuously improved.

　　The first is to promote the in-depth implementation of the strategy of storing grain in the land. We will allocate 92 billion yuan to support the construction, renovation and upgrading of 80 million mu of high-standard farmland. Through the issuance of national debt in 2023, 125.365 billion yuan will be arranged to support the construction of high-standard farmland in the northeast region and the disaster-stricken areas of Beijing, Tianjin and Hebei. Support Jilin Province and Shandong Province to take the lead in carrying out the pilot project of comprehensive utilization of saline-alkali land. Strengthen the improvement of cultivated land quality and the protection and utilization of black land, and arrange 9.936 billion yuan to support the implementation of grain and bean rotation in Northeast China, Huang Huai Hai and other regions, and arrange 5 billion yuan to support the implementation of black land protection and utilization in Northeast China.

　　The second is to support the strong implementation of the strategy of storing grain in technology. We will arrange subsidies of 23.6 billion yuan for the purchase and application of agricultural machinery, mainly support the purchase and use of machines and tools needed for the production of important agricultural products such as grain, cotton and sugarcane, and accelerate the application of Beidou automatic driving system and intelligent terminals in agricultural production. Support the protection of germplasm resources, the determination of production performance and the promotion of major crop varieties. Subsidies will be given to provinces that undertake the task of demonstrating and promoting soybean and corn strip compound planting in key suitable areas. In Zhejiang, Anhui, Fujian and other 10 major double-cropping rice producing provinces, support individuals engaged in centralized seedling raising and agricultural production and operation organizations to build centralized seedling raising facilities.

　　Third, the supply system of important agricultural products has been further consolidated. Focusing on soybeans and corn, we will carry out nationwide actions to increase the unit yield of grain and oil scale growers. Support the relevant provinces to develop winter fallow fields and expand winter rapeseed, and complete the expansion of winter rapeseed by more than 10 million mu. Support Guangxi and Yunnan to expand the supply and promotion of sugarcane varieties and the level of hoist harvesting, and carry out the renewal and tending of low-yield and low-quality rubber plantations. Promote the improvement of the production capacity of dairy counties, and carry out alfalfa development actions, grain-to-feed, incremental upgrading of beef cattle and mutton sheep, improved seed subsidies, and beekeeping quality improvement actions.

　　Fourth, farmers’ enthusiasm for growing grain was effectively mobilized. We will steadily implement subsidies for the protection of cultivated land fertility. In 2023, the central government allocated 121.485 billion yuan, an increase of 1 billion yuan over the previous year. In the critical period of spring ploughing production, a one-time subsidy of 10 billion yuan will be given to the actual grain farmers. Support the appropriate increase in the minimum purchase price of wheat and early indica rice, improve the subsidy policy for corn and soybean producers, steadily implement the rice subsidy policy, increase the incentives for major grain-producing counties, and realize the "18 consecutive increases" in the amount of incentive funds.

　　Fifth, the ability of agricultural disaster prevention and mitigation and disaster relief has been effectively improved. We will implement subsidies for "one spray for three defenses" for wheat and "one spray for more promotion" for corn and soybeans. Timely release 8.403 billion yuan of disaster relief funds, and actively respond to natural disasters such as "rotten rain" in Henan and other places, severe floods in the northeast of North China, and local drought in the northwest. Effectively respond to the impact of floods in Haihe River basin, pre-allocate compensation funds for national flood storage and detention areas, and complete the compensation issued by capital settlement at the end of 2023, and give subsidies according to the proportion of 70% of the central finance.

　　Sixth, the insurance protection of bulk agricultural products has been increasing. We will extend the full cost insurance and planting income insurance for the three major grain crops to all major grain-producing counties in China. In the whole year, 47.766 billion yuan of agricultural insurance premium subsidies were allocated, a year-on-year increase of 10%, providing 4.5 trillion yuan of risk protection for about 160 million households. Implement a comprehensive insurance policy for natural rubber. Guiding China Agricultural Reinsurance Co., Ltd. to play the role of the main channel, the annual reinsurance business scale is about 28 billion yuan, providing reinsurance protection for agricultural production of about 1 trillion yuan.

　　(2) Rural revitalization was solidly promoted.

　　First, the results of poverty alleviation continued to consolidate and expand. The central government allocated 175 billion yuan to promote rural revitalization subsidy funds (hereinafter referred to as bridging funds), with the same caliber increasing by 10 billion yuan compared with the previous year, and continued to give preferential treatment to key areas such as national rural revitalization counties. The central special lottery public welfare fund of 2.4 billion yuan will be arranged to support 48 revolutionary old districts and counties to start the construction of rural revitalization demonstration zones and explore rural revitalization paths with the characteristics of old districts. Closely monitor the use of bridging funds, carry out performance evaluation of bridging funds and strengthen the application of results to improve the effectiveness of fund use.

　　Second, rural development and rural construction have been solidly promoted. We will allocate 11.438 billion yuan to support the creation of 50 national modern agricultural industrial parks, 40 industrial clusters with advantages and characteristics, and 200 towns with strong agricultural industries, and accelerate the construction of a modern rural industrial system. It is clear that a new round of policies to support the development of new rural collective economy will be implemented in 2023-2027, and about 100,000 villages will continue to be supported to develop new rural collective economy, of which 10.39 billion yuan will be specially arranged by the central government in 2023 to support the development of new rural collective economy in 20,000 villages nationwide. Support qualified rural collective economic organizations, farmers’ professional cooperatives, agricultural service specialized households, agricultural production service enterprises and supply and marketing cooperatives to carry out agricultural socialization services. Reward and supplement the construction of micro-and small-scale public welfare facilities in the "outdoor village" agreed by the villagers democratically, carry out pilot projects for the construction of red and beautiful villages, and support qualified counties (cities, districts) to carry out pilot projects related to comprehensive rural reform. Guide local governments to promote rural toilet improvement according to local conditions, promote the protection of rural drinking water safety and improve rural living environment.

　　(3) Regional coordinated development continued to deepen.

　　We will further improve differentiated fiscal and taxation policies, promote the implementation of major regional strategies and regional coordinated development strategies such as coordinated development of Beijing-Tianjin-Hebei, development of the Yangtze River Economic Belt, construction of Guangdong-Hong Kong-Macao Greater Bay Area, integrated development of the Yangtze River Delta, ecological protection and high-quality development of the Yellow River Basin, and comprehensive revitalization of the Northeast, and strive to build a regional economic layout with complementary advantages and high-quality development. We will continue to focus on the old revolutionary base areas, border areas and resource-exhausted cities, promote the settlement of people’s livelihood policy debts in key areas and special areas, promote the development of various social undertakings, and further enhance the balance and coordination of regional development. Establish an incentive and restraint mechanism for coal production, and increase the transfer payment for major coal transferred out of provinces.

　　(4) The new urbanization strategy was implemented in depth.

　　First, the demonstration work of sponge city construction continued to be implemented. We will continue to systematically promote the demonstration of sponge cities throughout the country during the 14 th Five-Year Plan period, and select and determine 15 demonstration cities through competitive evaluation. In 2023, a total of 15 billion yuan was allocated to ensure the smooth development of the demonstration work. At the same time, the performance evaluation of the demonstration subsidy funds for sponge city construction in 2022 was carried out, and 13 cities including Zhangzhou, Fujian and Changzhi, Shanxi were rated as A-level.

　　The second is to promote the effective protection and utilization of traditional villages. In the 14th Five-Year Plan, the second batch of 30 demonstration counties for centralized contiguous protection and utilization of traditional villages were selected, and 1.5 billion yuan of central financial subsidies were issued to encourage local governments to explore effective ways to protect traditional villages in China. The sixth batch of traditional villages in China was investigated and identified. The number of traditional villages in China reached 8,155, and 539,000 historical buildings and traditional houses were protected, and 4,389 provincial-level and above intangible cultural heritages were protected and passed down.

　　Third, the policy of supporting the urbanization of agricultural transfer population has been thoroughly implemented. By arranging 40 billion yuan of incentive funds for the urbanization of agricultural transfer population, the central government has increased its stable financial support for areas with large foreign population and improved the ability to guarantee basic public services for newly settled population.

　　Seven, strengthen the construction of ecological civilization, and promote green and low-carbon development to a new level.

　　Increasing investment, improving mechanism and deepening reform have provided solid financial support and strong policy support for promoting the construction of ecological civilization, and continuously promoted the green and low-carbon transformation of development mode.

　　(a) focus on supporting the fight against pollution.

　　First, the blue sky defense war has been further promoted. We will allocate 33 billion yuan for the prevention and control of air pollution, strengthen investment in key areas such as Beijing-Tianjin-Hebei and its surrounding areas, Fenwei Plain and Yangtze River Delta, support the development of key tasks such as clean heating in winter in the northern region, collaborative control of fine particles and ozone, atmospheric environmental control and management capacity building, and promote local governments to speed up the resolution of outstanding problems affecting air quality. In 2023, the proportion of excellent days in 339 cities at prefecture level and above was 85.5%, and the air quality remained basically stable under the increasing adverse climatic conditions.

　　Second, the battle for clear water continued to advance. 25.7 billion yuan was allocated for water pollution prevention and control, focusing on the Yangtze River and Yellow River basins, supporting local governments to carry out water pollution control and water ecological protection and restoration, and promoting the protection of centralized drinking water sources. Promote the construction of compensation mechanism for horizontal ecological protection and extend the pilot award and compensation policy in the Yellow River Basin until 2025. Throughout the year, we coordinated and promoted the establishment of six inter-provincial mechanisms, such as the main stream of the Yellow River (Ganning section), and renewed four basin mechanisms, such as Xin ‘anjiang. In 2023, the proportion of excellent surface water quality sections in China was 89.4%, up 1.5 percentage points year-on-year; The proportion of inferior class V was 0.7%, which was flat year-on-year.

　　Third, the pure land defense war continued to deepen. 4.4 billion yuan was allocated for the prevention and control of soil pollution, focusing on the treatment of tailings ponds left over from heavy metal history to support the prevention and control of the source and effectively prevent the risk of soil pollution transmission. In 2023, the national soil environmental risks will continue to be effectively controlled, the safe use of key construction land will be effectively guaranteed, and the soil environmental conditions of agricultural land will be generally stable.

　　(2) Systematic promotion of ecosystem protection and restoration.

　　First, the integrated protection and systematic management of mountains, rivers, forests, fields, lakes, grass and sand have been carried out in depth. Funds of 14.2 billion yuan were allocated to support local governments to carry out integrated protection and restoration projects of grass and sand in landscapes, forests, fields and lakes. Seven projects, including Huangshui River Basin in Qinghai, the upper reaches of Baiyangdian Lake in Hebei, the important source area of Yalu River in Jilin and the typical tropical areas in southern Hainan, were included in the scope of central financial support. From the perspective of the integrity of the ecosystem, comprehensive management, systematic management and source management of grass and sand in landscapes, forests, fields and lakes were promoted as a whole to promote the diversity, stability and sustainability of the ecosystem. Since the "Fourteenth Five-Year Plan", 27 projects have been supported, covering the core key ecological areas of the country’s "three regions and four belts" in an all-round way.

　　Second, the ecological restoration of abandoned mines left over from history has been strongly supported. We will allocate 3 billion yuan to solidly promote the demonstration project of ecological restoration of abandoned mines left over from history, select 18 projects, including the key ecological zone of the Yellow River in Linfen, Shanxi Province, to be included in the scope of central financial support, restore damaged mountains and surface vegetation, improve regional ecological conditions, and enhance the quality of ecosystems and carbon sink capacity.

　　The third is the promotion of the marine ecological protection and restoration system. We will allocate 4 billion yuan to select 16 projects, including Fujian Putian, to carry out marine ecological protection and restoration projects, and carry out marine ecological protection and restoration in all directions, in the whole sea area and in the whole process, so as to improve the quality of marine ecological environment and enhance the carbon sequestration capacity of marine ecosystems.

　　Fourth, the ecological protection and restoration of forestry grasslands have been solidly promoted. The central government allocated 102.8 billion yuan for the transfer payment of forestry and grassland, promoted the construction of a nature reserve system with national parks as the main body, scientifically carried out large-scale land greening actions, implemented the policy of rewarding and subsidizing the development of camellia oleifera industry, strengthened the protection of natural forest resources and grassland ecological restoration, consolidated the achievements of returning farmland to forests and grasslands, implemented the compensation of forest ecological benefits and the policy of ecological rangers, and strengthened the protection and restoration of wetlands and national key wildlife. We will implement the compensation for the protection of desertification land, strengthen the fire prevention of forest and grassland and the prevention and control of forest and grass pests, give incentives to areas where the implementation of the forest length system has achieved remarkable results, and provide strong support for the ecological protection and restoration of forest and grass.

　　(3) peak carbon dioxide emissions has made positive progress in carbon neutrality.

　　First, the role of tax incentives and constraints is effectively exerted. We will implement a green tax system of "multi-tax governance" such as environmental protection tax, resource tax, consumption tax, value-added tax and enterprise income tax. Give play to the macro-control role of tariffs, reduce import tariffs on some key components of wind turbines and other products, and implement the import tax policy for energy resources exploration, development and utilization during the 14 th Five-Year Plan period.

　　Second, the diversified investment mechanism has been continuously improved. Optimize the performance evaluation mechanism of commercial banks and commercial insurance companies, and guide financial enterprises to increase their support for the development of green industries. Promote the investment and operation of the National Green Development Fund and support the ecological protection and green development of the Yangtze River Economic Belt.

　　Third, the transformation of industrial structure in the energy sector continued to advance. Optimize clean energy support policies, vigorously develop renewable energy, encourage unconventional natural gas to increase production and quantity, promote clean and efficient use of coal, and promote the construction of a new energy system.

　　Fourth, international cooperation on climate change has been further strengthened. Actively lead multilateral development banks, and increase policies and investment and financing support for China’s green and low-carbon transformation and development. Actively participate in the global environment, negotiations on funding issues under the United Nations Framework Convention on Climate Change, deeply participate in the governance of international climate and environmental funding mechanisms and strengthen strategic guidance. Use loans and grants from international financial organizations and foreign governments to support energy transformation, energy efficiency improvement, biodiversity protection and other fields.

　　Fifth, it is more powerful to supervise and guide local financial departments. Promote local financial departments to implement the requirements of supporting the "double carbon" work, actively formulate and implement policies and measures that are in line with their own reality, and build a policy system of financial support for green and low-carbon development with rich policy tools, clear expenditure direction and comprehensive coverage. Combing and summarizing the typical experiences and practices of local financial support for "double carbon", and promoting them throughout the country, giving full play to the demonstration role of pilot areas.

　　Eight, build a solid "three guarantees" bottom line to ensure the smooth and orderly operation of local finance.

　　The "three guarantees" at the grassroots level are related to people’s well-being, grassroots governance and long-term stability of the country. The Ministry of Finance insists on taking the "three guarantees" at the grass-roots level as the top priority of financial work, constantly increasing the sinking of financial resources, compacting the main responsibility of local governments, strengthening dynamic monitoring and early warning, and building a solid bottom line for the "three guarantees".

　　(1) Minimize financial resources and support the improvement of county-level financial security capabilities.

　　The central government will increase the transfer payment to local governments, reaching 10.29 trillion yuan in 2023, and constantly improve the mechanism to guide the financial resources to the grassroots level in counties and districts. Improve the basic financial security mechanism at the county level, and encourage areas that strive to improve the financial balance at the county level. From 2010 to 2023, the funds awarded by the central government for the county-level basic financial security mechanism increased from 47.5 billion yuan to 410.7 billion yuan, with an average annual increase of 18%.

　　(2) Improve the implementation of the graded responsibility system and promote the "three guarantees" responsibility to the end.

　　In accordance with the principle of "county-oriented, municipal-level assistance (bottom-up), provincial-level bottom-up, and central incentives", we will comprehensively compact the main responsibility of county-level financial departments and ensure the "three guarantees" expenditure needs in terms of budget arrangement, budget implementation and treasury allocation; Require the municipal level to do a good job in auditing, monitoring and emergency disposal of the "three guarantees" budget of the counties and districts under its jurisdiction, and earnestly fulfill the responsibility of safeguard supervision and guidance; By increasing the transfer payment to the lower level, strengthening the allocation of treasury funds, improving the financial system below the city level and other measures, we will implement the responsibility of guaranteeing the municipal districts and counties not directly under the jurisdiction of the province; Supervise and urge the provincial level to improve the financial system below the provincial level, promote the balance of financial resources below the provincial level, fully implement the responsibility of ensuring the bottom, and do a good job in the management of "three guarantees" in the province.

　　(3) Improve monitoring and early warning to prevent the operational risks of grass-roots finance.

　　Establish and improve the monitoring mechanism of local financial operation, monitor and analyze the local financial operation every month, find problems as early as possible and carry out risk warning. Make full use of mechanisms such as monitoring and early warning of treasury security in key counties and districts across the country, implement classified management and focus on monitoring. Relying on the integrated budget management system, we will explore the realization of accurate daily monitoring of wage payment, dynamically prompt the local financial resources, treasury funds and other factors that affect the financial security ability, and effectively prevent and resolve the hidden dangers of "three guarantees".

　　Nine, strengthen local government debt management, firmly hold the bottom line of systemic risk.

　　Resolving the hidden debt risks of local governments, steadily resolving the hidden debts in stock, strictly curbing the new hidden debts, effectively strengthening the monitoring and supervision of local debts, and gradually reducing the debt risk level.

　　(1) Solidly promote the dissolution of existing debts, and gradually ease the hidden debt risks of local governments.

　　In accordance with the decision-making arrangements of the CPC Central Committee and the State Council, we will promote the implementation of a debt package and introduce relevant policies and measures to support the prevention and resolution of local government debt risks. Compacting the main responsibility of localized debt, adhering to the principle of provincial overall responsibility, urging provincial governments to strengthen risk analysis and judgment, strictly implementing the main responsibility, and gradually resolving risks by arranging fiscal revenue, reducing expenditures, and revitalizing existing assets and resources. Generally speaking, a series of measures to resolve debt risks are being implemented in an orderly manner, the positive effects are gradually released, the scale of hidden debts is gradually declining, and the risks are slowly released.

　　(2) Always maintain a high-pressure regulatory accountability situation and resolutely guard against new debt risks.

　　The first is to establish a normalized monitoring mechanism. Establish and improve the institutional system to prevent and resolve the hidden debt risks of local governments, strengthen information sharing and collaborative supervision among departments, guide local governments to gradually establish a full-caliber, normalized hidden debt monitoring system, and strengthen risk analysis and evaluation.

　　The second is to resolutely curb the increase in hidden debt. Strictly block the "back door" of illegal and illegal debt financing, focus on strengthening risk source control, harden budget constraints, require strict local construction project audit, strictly control the financial "gate" of new project financing, strengthen the debt financing control of local state-owned enterprises and institutions, strictly prohibit illegal borrowing for local governments in disguise, and never allow new hidden debts to be added to new projects and new stalls.

　　The third is to continue to maintain a high-pressure supervision situation. Seriously investigate and deal with all kinds of illegal borrowing behaviors, and find them together, investigate them together, and hold them accountable together. In 2023, the official website of the Ministry of Finance publicly exposed eight typical cases of implicit debt accountability of local governments, giving full play to the role of shock warning.

　　Ten, focus on financial management reform, promote the effective play of financial governance.

　　Focusing on promoting the modernization of the national governance system and governance capacity, strengthening financial supervision, strictly enforcing financial discipline, continuously deepening the reform of the fiscal and taxation system, consolidating the foundation of financial management, constantly improving the level and efficiency of financial governance, and striving to inject strong impetus into promoting high-quality development and accelerating Chinese modernization.

　　(1) Strengthen financial supervision and standardize financial discipline.

　　First, carry out the special action of accounting supervision in a down-to-earth manner. Focusing on promoting the implementation of the major decision-making arrangements of the CPC Central Committee and the State Council, focusing on three key areas, namely, the investigation and handling of major cases in the financial field, the special rectification of key issues in financial discipline, and the special supervision of the accounting evaluation industry, we organized special actions for accounting supervision, and carried out special inspections and verifications on 12 major cases to strengthen supervision and rectification and accountability.

　　The second is to do a good job in fiscal and taxation supervision. Resolutely investigate and deal with all kinds of violations of laws and regulations such as new hidden debts of local governments and false debts, and publicly expose 8 typical cases of accountability of hidden debts of local governments. Strengthen the supervision of budget management, carry out special inspections on the disclosure of local budgets and final accounts in 2022, and continue to strengthen the "one card" management of financial subsidy funds for benefiting the people and farmers, so that financial discipline can become an untouchable "high-voltage line".

　　The third is to strengthen the special supervision of the accounting evaluation industry. Organize the practice quality inspection of 41 accounting firms and 15 asset appraisal institutions, and select 89 enterprises to carry out the quality inspection of accounting information by adopting the method of "from the place to the enterprise". Organize provincial financial departments to carry out practice quality inspection on 2,161 accounting firms and 741 asset appraisal institutions. We will continue to carry out in-depth special rectification work on "four types" of typical violations of laws and regulations, such as registered accountants practicing in name only, practicing beyond their competence, accounting firms operating without a license, and selling audit reports online, as well as special rectification work on outstanding problems in the bookkeeping industry, such as "operating without a license" and "false promises" by bookkeeping agencies, so as to effectively clean up the industry atmosphere.

　　The fourth is to strengthen the construction of industry informatization. Optimize and improve the unified supervision platform for the CPA industry, promote the establishment of a single source system for audit report data, develop the verification function of audit reports, and strengthen the inspection of audit reports. Improve the operational guidelines for bank correspondence, and promote the standardization, intensification and digitalization of bank correspondence.

　　(2) Deepening reform and innovation, and making new progress in the construction of the modern fiscal and taxation system.

　　First, the reform of the budget system continued to deepen. Improve the operating budget system of state-owned capital, and report to the State Council for printing and distributing the Opinions on Further Improving the Operating Budget System of State-owned Capital, so as to give full play to the function of operating budget of state-owned capital. Strengthen budget performance management and issue the Interim Measures for Budget Evaluation Management.

　　Second, the tax reform has been steadily advanced. Study and optimize the tax system, further improve the personal income tax system combining comprehensive and classification, and raise three special additional deduction standards for personal income tax, such as infant care under 3 years old, children’s education and support for the elderly. We will implement the principle of statutory taxation, promote the second review of the draft value-added tax law to be submitted to the 14th the National People’s Congress Standing Committee (NPCSC) for deliberation, and actively promote the legislation of consumption tax, customs duties and other taxes.

　　Third, the reform of the financial system has been gradually improved. We will steadily push forward the implementation of the reform plan for the division of financial powers and expenditure responsibilities between the central and local governments in the fields of health care, transportation and natural resources, and promote the introduction of reform plans in the field of intellectual property rights. We will improve the central-local transfer payment system and revise the measures for the management of county-level basic financial security mechanisms. Guide local governments to promote the improvement of the financial system below the provincial level, and establish and improve the financial system below the provincial level with more reasonable allocation of powers and responsibilities, more standardized income division, relatively balanced distribution of financial resources and stronger grassroots protection.

　　Fourth, the reform of state-owned assets and state-owned enterprises has been deepening. Constructing the legal system of state-owned assets management in all directions. Implement the reporting system of state-owned assets and strengthen the analysis and monitoring of the operation of state-owned economy. Standardize and strengthen the management of administrative state-owned assets, and establish and improve the long-term working mechanism of asset revitalization. We will carry out the task of reforming state-owned assets and state-owned enterprises, and promote the reform of divesting state-owned enterprises from their social functions and solving problems left over from history. Strengthen the audit of state-owned capital income and the management of state-owned capital operating budget, and strengthen the statistical monitoring of the operation of government investment funds and the national transfer of social security state-owned capital. Deepen the reform of state-owned financial capital management, strengthen the long-term assessment of state-owned commercial insurance companies, and strengthen the financial management of state-owned financial enterprises.

　　(3) Persist in focusing on standardization and efficiency, and the modernization level of financial management has been continuously improved.

　　First, strict management of departmental budgets. Promote the construction of project expenditure standards, standardize the budget adjustment of central departments, strengthen budget constraints, strictly control the adjustment budget during implementation, and strictly manage the adjustment of project expenditures for personnel funds.

　　The second is to further promote budget performance management. Organize the central department to carry out pre-performance evaluation of new and expired major projects, and timely correct performance deviation and fund management loopholes. Focus on key areas such as education, science and technology, agriculture and rural areas, and carry out financial performance evaluation on 52 policies and projects. Continue to promote the key performance evaluation results and budget arrangements, improve management and improve policy substance.

　　The third is to continue to promote the integration of budget management. The integrated system of central and local budget management will be fully put into operation, covering more than 20,000 budget units at the central level, more than 3,700 local financial departments and more than 600,000 budget units. Improve and perfect the unified national integrated norms and standards system of budget management, and improve the standardized, scientific and standardized level of budget management of financial departments at all levels.

　　The fourth is to carry out the special action of budget execution supervision in a down-to-earth manner. Organize local supervision bureaus and provincial financial departments of the Ministry of Finance to carry out key supervision over 40 central department budget projects and 20 transfer payment projects, and timely discover and investigate a number of problems such as untimely budget issuance, illegal allocation and use of funds through the combination of daily supervision and special verification, so as to promote the improvement of the system and strengthen internal control, and form a closed loop of supervision and management.

　　The fifth is to further improve the government procurement system. Revise and improve the government procurement law, and study and formulate relevant work plans for deepening the reform of the government procurement system around promoting the construction of a modern industrial system and creating a market-oriented and legalized international business environment.

　　Eleven, deepen foreign financial exchanges and cooperation, and promote the continuous expansion of high-level opening up.

　　Deepen pragmatic cooperation in the financial field, serve the diplomacy of a big country with China characteristics, actively implement global development initiatives, unswervingly push forward the high-quality development of the "Belt and Road", focus on consolidating the basic disk of foreign trade and foreign investment, improve China’s voice and influence in the global economic governance system, and shape our favorable external environment.

　　(1) Actively participate in global economic governance.

　　Give full play to the role of the China-US economic dialogue mechanism, take the lead in setting up a China-US economic working group, actively carry out communication and dialogue, and serve the San Francisco meeting of the two heads of state and the informal meeting of APEC leaders. Deeply participate in multilateral mechanisms such as G20, BRICS and 10+3, and carry out multilateral cooperation on key issues such as debt, reform of multilateral development banks, infrastructure investment, customs and tax cooperation. Actively participate in WTO reform and steadily push forward negotiations and consultations on key issues such as e-commerce. Promote and strengthen strategic cooperation with the World Bank. Continue to deepen exchanges and cooperation with the Asian Development Bank in the areas of climate change, regional cooperation, knowledge cooperation, integrity and compliance. Support the steady operation of Asian infrastructure investment banks. In 2023, the total number of members of the AIIB increased to 109, and 56 projects were approved throughout the year, with loans exceeding 12 billion US dollars. We supported the New Development Bank to expand the loan scale, approved 106 loan projects with a total amount of about 35.77 billion US dollars, supported the issuance of panda bonds in China, and became the largest issuer of multilateral development institutions in the interbank market in China, steadily promoting the expansion of the New Development Bank. All-round participation in the governance and development of IFAD. In-depth participation in the consultation on the two-pillar plan for the reform of international tax rules. Solidly promote the promotion strategy of free trade zones, scientifically formulate tariff negotiation plans, promote the negotiation and signing of free trade agreements with Nicaragua and other countries, implement tariff concession commitments such as RCEP with high quality, and actively promote the work of joining CPTPP and DEPA.

　　(2) Support the high-quality joint construction of the "Belt and Road" and go deep and practical.

　　Study and formulate the "One Belt, One Road" Debt Sustainability Analysis Framework to support the improvement of China’s overseas sovereign debt risk monitoring and management. With loans of US$ 4.2 billion from international financial organizations and foreign governments, we will support the construction of 19 projects in the areas of ecological protection and restoration, infrastructure interconnection and vocational education in the Yangtze River Economic Belt. Successfully promoted the Asian Development Bank to provide RMB sovereign loan products and approved the first RMB sovereign loan project, achieving a "zero breakthrough". Encourage ADB’s Greater Mekong Subregion Economic Cooperation and Central Asia Regional Economic Cooperation Mechanism to strengthen the connection with global and regional strategies such as the global development initiative and the Belt and Road Initiative, and work together to promote regional economic recovery and sustainable development. Support the effective operation of multilateral development and financing cooperation centers, and promote the approval of nine projects, including the "East African Community Trade Portal Interconnection Capacity Building Project".

　　(3) focus on consolidating the basic disk of foreign trade and foreign investment.

　　First, carry out in-depth demonstration of improving quality and efficiency in foreign trade and economic cooperation. The central government arranged special funds for the development of foreign trade and economic cooperation, supported the second batch of 10 provinces to start the demonstration of improving quality and efficiency of foreign trade and economic cooperation, and continued to support the first batch of 8 provinces to implement the demonstration work, focusing on key export-oriented industries, focusing on increasing high-quality imports, improving export quality, improving the level of attracting foreign investment, optimizing foreign investment, and promoting the quality and efficiency of related industries.

　　The second is to play the role of guiding fund for innovation and development of service trade. Encourage new ways of financing to support new trade formats and new modes. By the end of 2023, the Fund had decided to invest in 46 sub-funds and 24 direct investment projects, with a decision-making investment of 9.057 billion yuan and more than 500 investment enterprises, covering 18 pilot areas for innovation and development of service trade.

　　The third is to improve the tariff and import link tax policies. From January 1, 2023, the provisional import tax rate of 1,020 commodities will be lower than the most-favored-nation tax rate, and the import of advanced technology and equipment, key parts, medical supplies and high-quality consumer goods will be encouraged, and the introduction of high-quality resource elements will be supported. From July 1, 2023, the eighth step of tariff reduction for expanded products was implemented in the WTO Information Technology Agreement, and the total tariff level in China was reduced to 7.3%. Docking high international standards, we will pilot relevant import tax policies and measures in conditional free trade pilot zones and free trade ports, promote the institutional opening of trade in goods, and promote the steady improvement of foreign trade and foreign investment. Introduce and continue to implement cross-border electronic commerce’s tax policy on returned export commodities, and support the development of new cross-border e-commerce foreign trade formats.

　　Fourth, actively do a good job in export tax rebate. Expand the scope of implementation of the pilot tax refund policy at the port of departure, and implement the tax refund policy at the port of departure in Tianjin, Liaoning, Zhejiang, Fujian, Shandong and other places since April 2023. Give full play to the role of "Yixin Europe" in promoting the development of foreign trade, increase Zhejiang East China International Intermodal Port (Jinhua South Station) and Yiwu land port (Yiwu West Station) as departure ports, and take Alashankou, Horgos Railway Port and Ningbo Zhoushan Port as departure ports, and implement the tax refund policy for land departure ports. Actively support Ningbo to implement the tax refund policy for overseas tourists.

　　Fifth, continue to issue sovereign bonds in Hong Kong. Sovereign bonds have been issued in Hong Kong for 15 consecutive years, and a total of 311 billion yuan of government bonds have been issued, boosting the scale of RMB deposits in Hong Kong from 60 billion yuan in 2009 to nearly one trillion yuan. Among them, in 2023, 50 billion yuan of government bonds were issued in Hong Kong in four phases, an increase of 117% over the previous year, and the scale reached a record high.

　　XII. Prospect of fiscal policy in 2024

　　In 2024, under the guidance of Socialism with Chinese characteristics Thought of the Supreme Leader in the New Era, the Ministry of Finance will fully implement the spirit of the 20th Party Congress and the Second Plenary Session of the 20th Central Committee, adhere to the general tone of striving for progress while maintaining stability in accordance with the deployment of the Central Economic Work Conference, implement the new development concept completely, accurately and comprehensively, accelerate the construction of a new development pattern, make efforts to promote high-quality development, moderately intensify the proactive fiscal policy, improve quality and efficiency, consolidate and enhance the economic recovery, and continuously promote the effective improvement in quality and quantity of the economy.

　　In terms of "moderate strength", we will strengthen the overall planning of financial resources, and use a variety of policy tools such as deficit, special debt, national debt, tax and fee concessions, financial subsidies, etc. to moderately expand the scale of fiscal expenditure and promote sustained economic recovery. We will continue to arrange local government special bonds of appropriate scale and support local governments to increase efforts to make up for shortcomings in key areas. The central government still maintains a certain scale of transfer payments to local governments, especially increasing balanced transfer payments and tilting towards difficult and underdeveloped areas. Provincial finance should optimize the allocation of financial resources below the provincial level. Implement the structural tax reduction and fee reduction policy accurately and efficiently, and focus on supporting scientific and technological innovation and manufacturing development.

　　In terms of "improving quality and increasing efficiency", we will strive to promote the rule of law, scientificity, standardization and standardization of financial management, and spend the same money with greater results. Party and government organs should get used to living a tight life and concentrate their financial resources on great things. Optimize the structure of fiscal expenditure, make good use of limited incremental funds, and at the same time make great efforts to revitalize and adjust the stock. Fully implement budget performance management, strengthen financial supervision, standardize financial revenue and expenditure behavior, and improve the efficiency of financial resource allocation and the efficiency of capital use. Strengthen the synergy between fiscal policy and other macro policies, and strive to improve the effect of promoting high-quality development.

　　(1) Support the acceleration of the construction of a modern industrial system. We will continue to increase investment in science and technology, further focus on basic research, applied basic research and national strategic scientific and technological tasks, and promote high-level science and technology to stand on its own feet. We will increase support for industrial scientific and technological innovation, strengthen the protection of key R&D plans and major projects in the manufacturing sector, and support enterprises to participate more in major national scientific and technological projects. We will implement preferential policies such as R&D expenses plus deduction, tax relief for the transformation of scientific and technological achievements, and accelerated depreciation of fixed assets to encourage enterprises to increase investment in innovation. Implement financial support policies for specialized and innovative SMEs. In-depth implementation of small and medium-sized enterprises digital transformation city pilot.

　　(2) Support the expansion of domestic demand. Promote the construction of a unified national market, and treat all kinds of business entities equally in terms of financial subsidies, tax incentives and government procurement. Increase social security, transfer payments and other adjustments to increase the income of urban and rural residents. Study fiscal and taxation policies to encourage and guide consumption, and promote new growth points of consumption. We will further promote the implementation of county-level commercial construction actions and support the improvement of consumption-related infrastructure. We will continue to make good use of the funds for issuing additional treasury bonds in 2023, and timely allocate funds in strict accordance with the progress of project implementation. Government investment focuses on supporting key core technology research, new infrastructure, energy conservation, emission reduction and carbon reduction, fostering new development momentum, strengthening people’s livelihood and other weak economic and social links, and accelerating major projects in the 14 th Five-Year Plan.

　　(3) Support the protection and improvement of people’s livelihood. We will implement the employment priority policy, make overall use of policies such as tax reduction and exemption, social security subsidies, and loan interest subsidies, and support enterprises to stabilize and expand their posts and start their own businesses through multiple channels. Continue to increase investment in education and promote the construction of a high-quality education system. Improve the medical and health security system and support the comprehensive reform of public hospitals oriented to public welfare. We will improve the social security system, thoroughly implement the national overall planning of basic old-age insurance for enterprise employees, and strengthen hierarchical and classified social assistance and security. Strictly manage the "three guarantees" expenditure budget, increase the sinking of financial resources, and strengthen the tracking and monitoring of local financial operations.

　　(4) Support the promotion of urban-rural integration and coordinated regional development. We will support the work concerning agriculture, rural areas and farmers, raise the investment standard of high-standard farmland construction, strengthen the support of agricultural science and technology and equipment, improve the ability of food security, and earnestly consolidate and expand the achievements of poverty alleviation. Further promote the link between transfer payment and the citizenization of agricultural transfer population, and arrange a certain scale of incentive funds. Support the implementation of urban renewal, and promote the "three major projects" such as the construction of affordable housing, the construction of "flat and emergency" public infrastructure, and the transformation of villages in cities. We will further improve fiscal and taxation policies supporting major regional strategies and increase support for old revolutionary base areas, ethnic minority areas and border areas. Do a good job in designing the fiscal and taxation system and steadily promote the construction of Hainan Free Trade Port.

　　(V) Effectively prevent and resolve local government debt risks. Insist on doing our best and doing what we can, and carry out in-depth evaluation of financial affordability to enhance financial sustainability. Strengthen the management of local government debt, strictly implement the debt package, intensify the dissolution of hidden debts in stock, resolutely prevent new hidden debts, and improve the long-term mechanism of debt conversion. Strict financial discipline, strict implementation of various financial regulations and management systems, and resolutely investigate and deal with all kinds of illegal acts.

　　(6) actively and steadily plan a new round of fiscal and taxation system reform. Focusing on Chinese modernization goals and tasks and high-quality development requirements, we should adhere to systematic thinking, problem-oriented, establish first and then break, study and promote the reform of fiscal and taxation system, improve the modern budget system, optimize the tax structure, and improve the fiscal transfer payment system.

On April 8th, HarmonyOS Zhixing officially announced that a new product launch conference will be held on April 16th, and it will be officially launched. According to the schedule, HarmonyOS Zhijia and smart glasses will be released at 14: 00 on the same day, and HarmonyOS Zhixing will be released at 14: 30.

The M8 is positioned as a medium and large SUV, with 5 seats /6 seats to choose from. Booking has been started before, and a total of 6 configuration models have been launched, with the pre-sale price range of 368,000-458,000. As of April 6, the small order of this car has exceeded 100,000 units.

The new car is equipped with a 1.5T range extender with a power of 118kW, and uses a driving motor with the front 165kW and the rear 227kW, with a maximum speed of 200km/h.. Matching ternary lithium-ion batteries with capacities of 51.975kWh and 36.019kWh, the corresponding pure battery life is 235/240km and 161km, and the official nominal comprehensive battery life is 1526km.

It is worth mentioning that the extended version will also be listed on the same day. Enjoy the pre-sale price range of S9 extended edition of 318,000-378,000 yuan; At the same time, the new extended-range Max version /Ultra version will be launched on April 17th, and the car has already started a small order before (you can enjoy an interest of 2,000 yuan to 5,000 yuan under the order).

Directed and directed by Bo Huang, the film starring Wang Baoqiang, Shu Qi, LAY, Yu Hewei and Wang Xun will be released nationwide on August 10th. On August 4 th, the fifth episode of the behind-the-scenes special reality show "Another Good Play" was officially launched. In this special issue, with the enlightenment and encouragement of Bo Huang and the crew, LAY finally overcame his "fish phobia", not only grasping raw fish, but also successfully challenging raw fish, showing his professionalism as an actor.

　

LAY successfully challenged to eat raw fish and Bo Huang led everyone to film in the flood.

　

During the filming of The Island, the biggest challenge for LAY was how to overcome his fear of fish. In the last behind-the-scenes reality show, LAY admitted that he was afraid of scaly animals since he was a child, so he frequently begged the director Bo Huang and the staff for mercy, even hoping to change the play without touching raw fish.

　

At first, LAY was afraid of fake fish props, and the filming process was obviously slowed down a lot. However, LAY felt guilty because everyone in the crew was waiting for him. He didn’t want to delay everyone’s time. Finally, with the encouragement of Bo Huang, he overcame his fear of catching raw fish. In order to achieve the best performance effect, he even asked for more shots. In the scene of shooting live fish, Bo Huang and LAY ate fish at the same time. When Bo Huang was scared and screamed by the strange sound of fish, LAY was surprisingly calm, still eating raw fish, and completely devoted himself to his performance, which won unanimous praise from everyone.

　

For director Bo Huang, the uncertain weather on the island is his biggest headache. When filming the scene of LAY eating fish, the rainstorm continued, the river rose, the beach that had already been set up was almost submerged, and half of the photographic equipment was immersed in the water. Considering the pressure of time and producers, Bo Huang didn’t give up. With the joint efforts of the crew, he finished the play in the rainstorm, which showed the spirit of the characters fighting against fate.

　

The film The Island exposed the poster of "Monopoly" version, and everyone lived on a desert island and strived to be a winner in life.

　

It is reported that the film The Island is an allegorical story about the employees of the company who were shipwrecked on a group trip and were forced to live together on a desert island, and faced a series of "human nature" problems. According to the plot of the film, the film released a set of "Monopoly" posters, with a total of four posters in cartoon style and fine brushes. Each poster was divided into several squares by criss-crossing lines, symbolizing the plates in the "Monopoly" game.

　

The first poster is based on the urban landscape, with high-rise buildings and neon lights. A yellow bus stops by the road, indicating that everyone is about to go to the League Building. Then, on the second poster, the situation changed, the waves surged and the ship sank, which just corresponded to the plot that everyone was accidentally shipwrecked. On the third poster, there are many trees, and people are in groups of three or two, which reflects the embarrassing situation that everyone has just been stranded on a desert island. In the last poster, most people have changed into uniform blue and white clothes, some are farming and some are fishing, which seems to imply that people have adapted to life on a desert island and a new production relationship is being established.

　

The whole set of posters shows the various stages of the movie plot step by step, and naming it "Monopoly" makes people wonder whether people will change their social status in the real society, and new leaders and winners will emerge.

　　May 22nd, World Biodiversity Day. At 7 o’clock in the morning, Mr. Wu, a volunteer to protect the Yangtze finless porpoise, came to Xiaguan Riverside in Nanjing to observe the Yangtze finless porpoise for one day and understand how they live happily in Nanjing metropolitan area.

　　At 7 o’clock in the morning, on the lower surface of Nanjing Yangtze River Bridge, the river was choppy from upstream to downstream, and fish jumped out of the water from time to time. In a short time, a few big animals were swam out from a distance, and then they lined up in a straight line, all of them stuck to their posts and swam in situ together, some of them jumped from time to time, fanned the big swallowtail and set off waves.

　　These dozens of big animals, which are gray and black and round, are Nanjing Jiangzhuzi, whose scientific name is Yangtze finless porpoise, a national first-class wild protected animal. Originally, we swam in situ together, and waited for the little fish to enter the mouth and become a thing in the bag. However, some young porpoises are naughty and playful next to their parents, and their lives are very happy and comfortable.

　　At about 9 o’clock in the morning, the sun rises, and the hot and hot weather makes the Yangtze finless porpoises unbearable. The finless porpoises quickly get out of the way with their cubs to enjoy the summer! However, there are still two heads that insist on leaving here until 11: 30.

　　At 4 o’clock in the afternoon, a cool breeze blew on the river surface, and a head of finless porpoise swam to the lower river surface of the Yangtze River Bridge from all directions, still lined up in a row, all swimming together in the same place, catching the white bream in the entrance, and there was no fight and contention. Everyone was very harmonious.

　　When the night falls at 6: 30 and the lights are on, the Nanjing Yangtze River Bridge is like a "rainbow" flying north and south, colorful and colorful. The river shows colorful reflections under the light. Actually, many finless porpoises with black backs are surfing and swimming together, and they jump continuously when they are excited, which has attracted the attention of many citizens.

　　Mr. Wu, a volunteer to protect the finless porpoise, said that he has lived in the middle and lower reaches of the Yangtze River for a long time and is known as the "giant panda in the water". With the great protection of the Yangtze River in Nanjing, there are more fish in the riverside area of Nanjing, and the finless porpoises frequently appear active, which shows that the great protection has achieved remarkable results.

　　(Editor/Jiang Jie)

　　People’s Daily Online, Beijing, August 10 (Xing Zheng) The reporter learned from the General Administration of Market Supervision that the China Fiber Inspection Bureau recently made a statistical analysis on the investigation and handling of administrative law enforcement cases of fiber and fiber products quality by provincial professional fiber inspection institutions and some local (city) professional fiber inspection institutions in 2017. The analysis results show that cotton and other fiber quality cases account for 29.6%, wadding fiber products cases account for 30.4%, student service cases account for 12.1%, and other fiber products quality cases account for 27.9%.

　　In some typical cases of national fiber and fiber products quality supervision, there are cases of cotton doping and adulteration in the post-event supervision of strengthening cotton, cases of "black-hearted cotton" counterfeiting, quality of student clothes and students’ bedding found in the quality supervision of fiber products, and cases of fiber products quality for automobiles, which involve many fields of society and people’s livelihood. Specific case contents are as follows:

　　1. The case of Li Qiufeng in Inner Mongolia producing and selling inferior fiber products for household use.

　　On September 6, 2017, the administrative law enforcement officers of the Fiber Inspection Bureau of Inner Mongolia Autonomous Region conducted a product retrospective investigation on the small shops and vendors around Inner Mongolia Vocational and Technical College of Architecture suspected of selling unqualified cotton bedding. According to the clue, Li Qiufeng’s cotton quilt processing factory produced 1,585 finished quilts and 1,833 cotton quilts, and used raw materials prohibited by the state for domestic wadding fiber products as cotton quilt fillers, involving a value of 281,807 yuan.

　　On May 8, 2018, the defendant Li Qiufeng was convicted of producing and selling fake and inferior products, sentenced to 7 months in prison and fined RMB150,000.

　　Second, Jiangsu Tangtang Group Lianyungang Home Textiles Co., Ltd. produced and sold unqualified students’ bedding.

　　In August 2017, the law enforcement inspection team of Xuzhou Fiber Inspection Institute conducted law enforcement inspection on the quality of bedding purchased by Xuzhou Higher Vocational College of Economics and Trade and xuzhou institute of technology for the freshmen of 2017. Law enforcement officers randomly sampled the bedding for freshmen in two schools according to the standard, and issued a Notice of Ordering to Correct three unmarked products, namely mosquito nets, pillow cores and bedding bags, which were purchased in xuzhou institute of technology. After investigation, the unqualified pillowcases were produced and sold by two companies entrusted by Jiangsu Tangtang Group Co., Ltd., and the pillowcases did not meet the requirements of national standards. The total number of unqualified pillowcases involved was 11,400, with a unit price of 7 yuan and a value of 79,800 yuan. The company replaced the unqualified pillowcases.

　　Ordered to stop producing and selling unqualified pillowcases according to law, confiscated 11,400 unqualified pillowcases produced and sold illegally, and fined 79,800 yuan.

　　III. Case of Hubei Haoxia Home Textile Co., Ltd. producing and selling inferior fiber products for household use.

　　On January 11th, 2017, the law enforcement officers of Hubei Fiber Inspection Bureau conducted law enforcement inspection on the disaster relief materials in the disaster relief materials reserve warehouse of Luotian County Civil Affairs Bureau, and found that the number of quilts produced and sold by Hubei Haoxia Home Textiles Co., Ltd. was 2,000 beds, and the model specifications were: quilt cover was 220CM×150CM (blue plaid) and cotton tires were 210CM×148CM (white net red rib). After sampling inspection, the raw materials of quilt filler do not meet the requirements of the national mandatory standard GB18383, which is an unqualified product. After investigation, the unit price of this batch of unqualified quilts is 119 yuan/bed, and the value of the goods is 238,000 yuan.

　　Ordered to stop production and sales according to law, and fined 71,400 yuan.

　　Four, Chongqing Jiulongpo Aijiayuan bedding processing factory produced inferior fiber products for household use.

　　On September 14, 2017, law enforcement officers of Chongqing Fiber Inspection Bureau conducted an on-site inspection of Aijiayuan Bedding Processing Factory in Jiulongpo District, and inspected the cotton tires in its finished warehouse, totaling 1,450 beds, which were not marked with the warning of "non-domestic use". After investigation, the batch of cotton tires did not meet the requirements of national standards, and there were illegal acts in production and sales that did not meet the national standards and industry standards for protecting human health and personal and property safety.

　　Ordered to stop production and sales according to law, and fined 58,000 yuan.

　　5. The case of Gongshang Cotton Processing Co., Ltd. in Tuokexun County, Turpan, Xinjiang, not sorting and excluding foreign fibers and other harmful substances according to national standards during cotton processing.

　　In October, 2017, the law enforcement officers of Turpan Fiber Inspection Institute found that there were chemical fiber woven bags and plastic films in the No.3 cotton warehouse being processed and produced by the factory, and no heterosexual fiber pickers were found on site. According to the investigation, there are about 150 tons of seed cotton in No.3 cotton warehouse, which is under production and processing, and about 100 tons of seed cotton have been processed in No.3 cotton warehouse without picking foreign fibers, totaling 250 tons of seed cotton, equivalent to 100 tons of lint.

　　It shall be ordered to make corrections according to law, sort and eliminate foreign fibers and other harmful substances in the processed cotton according to national standards, and impose a fine of 30,000 yuan.

　　Six, Chongqing Hanyi car seat Co., Ltd. produced a car seat cover with VD model that was unqualified.

　　On May 10, 2017, law enforcement officers of Chongqing Fiber Inspection Bureau conducted an on-site inspection on Chongqing Hanyi Automobile Seat Co., Ltd., and conducted random on-site sampling on the car seat cover with VD model in the finished product warehouse to be sold. After inspection, this batch of products was judged to be unqualified. It has been verified that the number of car seat covers with VD model in this batch is 160 sets, with a unit price of 125 yuan/set and a value of 20,000 yuan.

　　According to the law, he was ordered to stop producing and selling unqualified seat covers, and was fined 20,000 yuan.

　　7. The case of Baiyin Cotton Professional Cooperative in Erbao Town, Hami, Xinjiang purchasing cotton in violation of national standards and technical specifications.

　　On October 12, 2017, the administrative law enforcement officers of Hami Fiber Inspection Institute carried out supervision and inspection of cotton purchasing and processing according to law. During the on-site inspection, it was found that there were about 400 tons of seed cotton piled up at the Baiyin Cotton Professional Cooperative in Erbao Town, Hami, and there were no inspectors in the inspection room. There were no cotton inspection conditions at the scene. After investigation, the cooperative is a cotton processing enterprise newly accepted in 2017. It began to purchase cotton on September 25, 2017. By the time of inspection, it had purchased about 500 tons of seed cotton and processed one batch of lint.

　　Ordered to correct the illegal acquisition according to law and fined 20 thousand yuan.

　　Eight, Shandong Wucheng Zhiyou Cotton Industry Co., Ltd. did not process and sell cotton according to national standards.

　　In July 2017, Shandong Fiber Inspection Bureau received the materials handed over by Jiangsu Fiber Inspection Bureau (Su) Fiber Jijian [2017] No.1 "Proposal for Quality and Technical Supervision and Inspection", and provided clues about the illegal activities of cotton processed and sold by Wudi Liyuan Cotton Industry Co., Ltd., and immediately carried out law enforcement inspection on Wudi Liyuan Cotton Industry Co., Ltd. After investigation, Wucheng Zhiyou Cotton Industry Co., Ltd. is the producer and seller of the cotton involved. This batch of cotton is 120 tons in total, with a value of more than 790,000 yuan. It has participated in the public inspection and obtained the notarization inspection certificate, but there is no quality certificate to accompany the goods.

　　Ordered to correct the illegal act according to law and fined 10,000 yuan.

　　Nine, Handan Yuxin Clothing Co., Ltd. does not produce student uniforms in accordance with state regulations.

　　In December 2017, law enforcement officers of Handan Fiber Inspection Institute of Hebei Province inspected Handan Yuxin Clothing Co., Ltd. according to law, and found that the raw material cloth purchased by the company had a factory inspection report, but could not provide invoices or purchase vouchers for the cloth, and did not keep the purchase receipt. After investigation, according to the special provisions of the state, the producer of student clothes should check, accept and record the purchase of raw and auxiliary materials, and keep the records for at least two years. The company failed to fulfill its obligation of acceptance and record.

　　It shall be ordered to make corrections according to law and fined 5000 yuan.

　　Wen, Feng Pengcheng

　　How big is the commercial health insurance space in China?

　　In a joint document issued by 13 ministries and commissions, it is required to realize 2 trillion premiums by 2025.

　　Swiss Re’s research report in 2019 said that China faced a health protection gap of $800 billion.

　　Under the great epidemic in 2020, health insurance was the king of C, especially compared with the growth rate of other types of insurance. In January and February of 2020, health insurance continuously surpassed the market and became the second largest type of insurance in the market, making it the main type of insurance to undertake the insurance gap in 2020.

　　Whether it is the expectation of the highest level, the documents issued by 13 ministries and commissions, the health insurance-related policy dividends continuously issued by the Banking Insurance Regulatory Commission, a trillion-dollar health insurance market is roaring. If there are no accidents, this year’s health insurance is likely to exceed one trillion.

　　As the insurance field closest to social governance, the future of health insurance is closely related to the trend of medical reform in the huge industry vision. Therefore, it is particularly important to study the medical reform policies, regulatory measures, industry trends and business characteristics in different periods in combination with the staged characteristics of the current health insurance market.

　　Feng Pengcheng, the author of this paper, has been immersed in this field for more than ten years, thinking: combing the context of 33 policies of China health insurance in the past 38 years in detail, in order to find the experience and enlightenment between commercial health insurance and medical insurance reform.

　　one

　　-Insurance Today-

　　The first step in 38 years: 1982-1997

　　After 15 years, the premium of 1.5 billion critical illness insurance entered China, and the State Council defined the status of health insurance for the first time

　　In December 1978, the Third Plenary Session of the Eleventh Central Committee established the policy of reform and opening up and decided to shift the focus of work to socialist modernization centered on economic construction.

　　In February, 1979, the People’s Bank of China proposed to resume domestic insurance business at the national meeting of branch presidents.

　　In 1982, with the approval of the Shanghai Municipal Government, China People’s Insurance Company (hereinafter referred to as PICC) launched the "Shanghai Cooperative Workers’ Medical Insurance" on a pilot basis, which was officially implemented in January 1983. This is the first commercial health insurance business after China resumed its insurance business.

　　Since then, commercial health insurance in China has been launched. After more than 30 years of development, it can be divided into three stages: initial development, professional exploration and multi-level protection.

　　This is the first stage.

　　Then the old people’s insurance accelerated the health insurance test:

　　In 1985, PICC launched supplementary medical insurance and maternal and child health insurance in some areas, and the premium income in that year was 11.78 million yuan, accounting for 3% of the personal insurance business.

　　In January, 1987, PICC Shanghai Branch cooperated with the Municipal Health Bureau to launch the "Shanghai Suburban Farmers’ Medical Insurance".

　　In May, 1988, according to the Regulations on Labor Management of Joint Ventures in People’s Republic of China (PRC) and the Regulations on Labor and Personnel Management of Sino-foreign Joint Ventures in Shanghai, the welfare protection for the employees of the joint venture China was carried out, including outpatient and inpatient medical treatment.

　　In 1990, in line with the family planning policy, PICC launched a series of products such as induced abortion health insurance, birth control insurance and maternal and child health insurance.

　　In October 1991, PICC began to provide medical insurance for primary and secondary school students and kindergarten children. By the end of that year, nearly 2 million primary and secondary school students and children were insured.

　　In 1992, more than 70 kinds of medical insurance products were sold nationwide, with a premium income of 310 million yuan.

　　In the 1990s, the health insurance with safe entry at the beginning of its establishment;

　　In 1993, Ping An launched 24 group medical insurance products;

　　In 1994, five personal medical insurance products were introduced;

　　In 1996, the Ministry of Medical Insurance was first established in China (later renamed as the Ministry of Health Insurance);

　　In 1997, the hospitalization peace of mind insurance with low premium, high degree of protection and simple claim settlement procedures was introduced. Because it was widely welcomed by the market, the premium in 2000 exceeded 300 million yuan.

　　After entering the 21st century, there are life insurance companies that make efforts in the field of health insurance:

　　In 2000, Taikang Life Insurance established the Health Insurance Department, and launched three medical insurance products of "Century Taikang Series" that year. Among them, "Century Taikang Personal Hospitalization Medical Insurance" promises to renew the insurance for the first time in China. The basic responsibilities are general hospitalization insurance and hospitalization insurance for major diseases. Optional responsibilities include "organ transplant insurance (heart, lung, liver, pancreas, kidney and bone marrow transplantation)" and "non-organ transplant surgery insurance".

　　Looking at the development of health insurance in this period, the emergence of critical illness insurance is a great innovation.

　　In 1995, China was introduced to critical illness insurance, initially as an additional insurance for life insurance products, which generally covered seven major diseases (malignant tumor, myocardial infarction, stroke, coronary artery bypass grafting, uremia, paralysis and major organ transplantation). In 1996, a main insurance product was introduced to guarantee lifelong liability.

　　Summarizing the main characteristics of commercial health insurance in this period, there are four aspects:

　　The first feature: from the perspective of medical insurance reform, the top management expects to meet the medical needs beyond the basic medical security stipulated by the state.

　　In 1994, the State Council initiated the pilot reform of "Two Rivers" for urban workers. In 1996, the General Office of the State Council forwarded the Notice of the State Commission for Restructuring the Economy and other four ministries and commissions on the opinions of expanding the pilot reform of the medical security system for employees, and put forward that "mutual medical insurance and commercial medical insurance for employees should be developed as a supplement to social medical insurance to meet the medical needs beyond the basic medical security stipulated by the state".

　　The second feature: from the perspective of market demand, residents’ insurance awareness and income level are low.

　　In 1997, the per capita GDP was 6,457 yuan. At that time, the medical system of public expense and labor insurance was implemented in urban areas, and the burden of medical expenses was generally low. In rural areas, the rural cooperative medical system still plays a certain role, and residents’ insurance awareness and income level are low.

　　The third feature: from the perspective of industry supply, the number of competitors in the insurance market has increased, and the pattern of PICC monopolizing the market no longer exists.

　　Ping An Life Insurance Company of China and Pacific Life Insurance developed rapidly, and Taikang Life Insurance and Xinhua Life Insurance were established one after another. However, generally speaking, the insurance market was in its infancy and its strength was weak. The business was mainly property insurance, and health insurance was not operated as the main business segment, so the effective supply capacity of commercial health insurance was limited.

　　The fourth feature: from the perspective of selling products, the actuarial pricing ability is poor, and the risk management and control ability is limited. Generally, they are sold as additional insurance, mostly medical insurance products, with relatively simple responsibilities and low level of protection.

　　Take critical illness insurance products introduced at this stage as an example. At the initial stage of sales, all insurance companies are cautious, with low underwriting amount and strict underwriting policy.

　　However, critical illness insurance’s unique coverage content was quickly recognized by the market, and various insurance companies also upgraded their products in an all-round way, expanded the scope of diseases, changed additional insurance into main insurance, and extended regular coverage to life.

　　With the promotion of personal marketing model, products have developed rapidly and sales have soared. In 1997, the premium income of national commercial health insurance was 1.5 billion yuan.

　　2

　　-Insurance Today-

　　The second step in 38 years: 1998-2008

　　After ten years of professional exploration, the premium was 50 billion yuan. At that time, the Prime Minister even instructed that a professional health insurance company was born.

　　The main line of medical insurance reform at this stage is: the state has established a basic medical insurance system in an all-round way, and commercial health insurance has accelerated the specialization process.

　　In December, 1998, the State Council’s Decision on Establishing the Basic Medical Insurance System for Urban Employees was issued, and a new basic medical insurance system for urban employees was established, which indicated that the medical insurance system of free labor insurance implemented in China for more than 40 years was replaced by the new social medical insurance system.

　　In 2003 and 2007, the state established the new rural cooperative medical system for rural residents and the basic medical insurance system for urban residents for non-employed residents.

　　At the same time, rural medical assistance and urban medical assistance systems were established in 2003 and 2005 respectively. So far, China has established a basic medical insurance and medical assistance system covering urban and rural areas.

　　Basic medical insurance and medical assistance policies

　　The number of employees participating in medical insurance increased from 19 million in 1998 to 200 million in 2008, the number of participants in the new rural cooperative medical system exceeded 800 million, and the number of urban residents participating in medical insurance exceeded 100 million.

　　By 2008, the total number of people participating in the three basic medical insurance systems in China reached 1.133 billion, and the participation rate of basic medical insurance reached 85% that year.

　　Participation in basic medical insurance from 1998 to 2008

　　The characteristics of health insurance at this stage can be summarized into six characteristics:

　　The first feature: at the policy level, it encourages the vigorous development of commercial health insurance and provides preferential tax support for enterprises to purchase supplementary medical insurance.

　　The overall design of basic medical insurance for urban workers is "basic and low-level", and the deductible line (10% of the average annual salary of local workers last year), the capping line (4 times of the average annual salary of local workers last year) and the reimbursement ratio (generally about 80%) are set, so individuals have a certain medical burden.

　　"the State Council’s decision on establishing the basic medical insurance system for urban workers" puts forward:

　　Medical expenses exceeding the maximum payment limit can be solved through commercial medical insurance and other means. Supplementary medical insurance for enterprises is allowed. The part of enterprise supplementary medical insurance premiums within 4% of the total wages shall be paid from the employee welfare funds, and the part of the welfare funds that is insufficient shall be included in the cost after being approved by the financial department at the same level.

　　This is the first supplementary positioning of commercial health insurance at the national policy level, and provides tax preferential policy support.

　　In 2003, the Ministry of Finance’s Notice on Financial Handling of Enterprises Purchasing Insurance for Employees clearly stated that "enterprises participating in basic medical insurance should establish supplementary medical insurance for their employees, and the part of the required expenses within 4% of the total wages should be paid from the welfare funds payable, and the insufficient part of the welfare funds should be directly included in the cost (expense) as labor insurance premiums".

　　Wen Jiabao, then Prime Minister of the State Council, made important instructions on commercial health insurance twice in 2002:

　　The gradual development of commercial health insurance and the combination of commercial medical insurance are not only conducive to meeting the medical needs of the broad masses, but also to developing the economy and stabilizing society.

　　According to the instructions of the leaders of the State Council, the insurance industry stepped up the research on commercial health insurance, boldly innovated and tried, and accumulated experience in practice.

　　In 2006, the State Council’s Opinions on the Reform and Development of the Insurance Industry clarified the position of commercial insurance in the social security system and pointed out the direction for the development of commercial health insurance;

　　First, vigorously develop commercial health insurance. It is proposed to "vigorously develop personal insurance services such as commercial endowment insurance and health insurance to meet the insurance protection needs of urban and rural people".

　　The second is to encourage investment in the health industry. It is proposed to "vigorously promote the development of health insurance and support relevant insurance institutions to invest in medical institutions".

　　The third is to support participation in the new rural cooperative medical system. Put forward "actively explore effective ways for insurance institutions to participate in the management of the new rural cooperative medical system and promote the healthy development of the new rural cooperative medical system".

　　The second feature: supervision encourages professional development, introduces special management methods and statistical systems, and strengthens industry participation in the supervision of basic handling and entrusted management of health insurance.

　　① Advocating professional development.

　　In 2001, the former China Insurance Regulatory Commission vigorously promoted the professional management concept of health insurance, organized industry forces, completed the research on the topic of "Commercial Medical Insurance in China", and published the first monograph on commercial health insurance in China, clearly stating that the development of commercial health insurance must take the road of professional development.

　　In 2002, the "Guiding Opinions on Accelerating the Development of Health Insurance" was issued, proposing to establish a health insurance development model suitable for China’s national conditions and strengthen the professional operation and management of health insurance. This is the first special document on health insurance after the establishment of the former CIRC.

　　In the same year, the first "Commercial Health Insurance Development Forum" was held to publicize the professional management concept and expand the industry influence of health insurance.

　　In 2004, the construction of health insurance professional institutions was started, and five health insurance companies were approved for preparation (after Zhenghua Health, it was renamed Zhongrong Life Insurance).

　　(2) support to participate in the basic medical insurance.

　　In 2005 and 2008, respectively, the Guiding Opinions on Improving the Insurance Industry’s Participation in the Pilot Work of the New Rural Cooperative Medical System and the Notice on Relevant Issues Concerning the Insurance Industry’s Participation in the Management of Basic Medical Security were issued, proposing that:

　　The insurance industry participates in the relevant requirements of the new rural cooperative medical system and basic medical insurance, adopts the mode of entrusted management, gives play to the advantages of professional management and standardized service, and continuously enhances service efficiency;

　　Actively develop supplementary insurance products that are connected with basic medical security projects, and improve the degree and level of protection for the insured persons of basic medical security.

　　③ Strengthen unified supervision and statistics of business.

　　In 2006, the Measures for the Administration of Health Insurance was promulgated, which is the first professional regulation of health insurance in China. This method unifies the regulatory rules of business entities and clarifies the regulatory requirements of health insurance in business management, product management and sales management.

　　In 2008, the Statistical System of Health Insurance was promulgated to standardize the classification of health insurance and related businesses and unify the statistical caliber.

　　④ Standardize the entrusted management of health insurance.

　　In 2008, the Notice on Matters Related to Entrusted Management of Health Insurance was issued, encouraging insurance companies to accept the entrustment of corporate clients such as government departments, enterprises and institutions, and provide management services such as scheme design, consultation and suggestions, entrusted fund management, medical service investigation, medical expenses audit, reimbursement and payment of medical expenses, sign entrusted management contracts, collect management fees, and not bear the losses and surpluses of entrusted funds.

　　Relevant health insurance policy documents of the former CIRC from 1998 to 2008

　　The third feature: the health insurance market has been greatly expanded, and supervision has introduced more subjects to return to protection.

　　① Property insurance companies enter the field of short-term health insurance.

　　Since 2003, according to the revised Insurance Law, property insurance companies can operate short-term health insurance business with approval, and the market welcomes more participants.

　　By 2008, there were 65 insurance companies engaged in health insurance business (including 46 life insurance companies, 4 professional health insurance companies and 15 property insurance companies).

　　② The first batch of professional health insurance companies achieved initial development.

　　After 2005, PICC Health, Safe Health, Harmonious Health (formerly Ruifu Health) and Kunlun Health were established successively. In 2008, the premiums of the four health insurance companies were 14.07 billion yuan, accounting for 24% of the industry health insurance premiums in that year.

　　Development of professional health insurance companies

　　③ The health insurance can not be designed as dividend insurance because of its return guarantee function.

　　In 2003, the Actuarial Regulations of Individual Dividend Insurance stipulated that health insurance products should not take the form of dividends, which made commercial health insurance products focus on risk protection.

　　For the suspension of dividend-paying health insurance, the regulatory authorities give four reasons:

　　Health insurance is risky and complicated to manage, and it is more difficult to manage the dividend factor, which is not conducive to corporate risk control.

　　The main function of health insurance is protection, but the value-added function is not strong. Consumers should pay attention to its protection function when purchasing health insurance.

　　The suspension of dividend health insurance and the development of non-dividend health insurance are conducive to promoting the return of health insurance to the original intention of protection.

　　There is no dividend health insurance abroad, and foreign-funded companies have not offered dividend health insurance.

　　④ Formulate a unified definition of major diseases in the industry.

　　In 2006, the insurance industry association cooperated with the Chinese Medical Doctor Association to develop the definition of serious illness.

　　In April, 2007, the Standard for the Use of Disease Definitions in critical illness insurance was issued, which unified and standardized the expressions of the 25 most common diseases, and required that the products with serious diseases sold after August 1, 2007 must use a unified definition of serious diseases.

　　From the experience of countries all over the world, among many diseases guaranteed by critical illness products, there are 3-6 diseases with the highest incidence and claim settlement rate, and these diseases have the greatest impact on the price of critical illness products.

　　In order to give full play to the protection function and protect consumers’ rights and interests, the Standard for the Use of Disease Definitions in critical illness insurance stipulates that six core diseases (including malignant tumor, acute myocardial infarction, sequela of stroke, major organ transplantation or hematopoietic stem cell transplantation, coronary artery bypass grafting and end-stage renal disease) must be protected for products with severe diseases in adult stage.

　　The fourth feature: the premium is 50 billion, with an average annual growth rate of 36%, and the proportion of health insurance has doubled.

　　The premium of commercial health insurance has developed rapidly. After the premium exceeded 10 billion in 2001, it exceeded 50 billion yuan in 2008. By the end of 2008, the industry had accumulated 1.13 billion person-times, providing 5.26 billion yuan of health risk protection.

　　The premium of commercial health insurance increased from 2.8 billion yuan in 1998 to 58.55 billion yuan in 2008, with an average annual growth rate of 35.5%, which was higher than the growth of GDP and the average annual growth rate of personal insurance of 25.8%.

　　The payment of commercial health insurance increased from 1.1 billion yuan in 1999 to 17.53 billion yuan in 2008, with an average annual growth rate of 36%, which was higher than the average annual growth rate of personal insurance of 23.6%.

　　Premium and growth of commercial health insurance from 1998 to 2008

　　The proportion of commercial health insurance premiums in personal insurance doubled from 3.7% in 1998 to 7.9% in 2008.

　　Changes in the proportion of commercial health insurance in personal insurance from 1998 to 2008

　　The fifth feature: health insurance is deeply involved in social governance, and medical insurance management is integrated into the medical insurance system.

　　Since 2001, the insurance industry has taken advantage of its actuarial technology, risk management, claims technology and service network to participate in the new rural cooperative medical system and urban residents in Jiangyin, Jiangsu and Xinxiang, Henan in a socialized way.

　　By 2008, insurance companies such as China Life Insurance and Pacific Life Insurance had participated in the basic medical insurance in 142 counties (cities, districts) in Jiangsu, Henan, Guangdong and Fujian provinces, serving 34 million people and managing 2.62 billion yuan.

　　The "Jiangyin Model" in the Pacific Ocean and the "Luoyang Model" in China Life have been approved by state leaders and praised by all sectors of society. In addition, the insurance industry has carried out pilot projects of supplementary medical insurance in Xiamen and other places, and provided a large amount of supplementary protection for employees on the basis of basic medical insurance for urban employees.

　　A major feature of this stage: commercial insurance companies handle basic medical insurance, creating an operating mechanism that separates collection, management and supervision.

　　First, it is conducive to the establishment of incentive and restraint mechanisms and supervision and restraint mechanisms. By introducing commercial insurance companies to handle basic medical insurance, the separation of management and management is formed, so that government departments, insurance companies and designated medical institutions can perform their respective duties, which is conducive to establishing effective incentive and restraint mechanisms and inter-agency supervision and restraint mechanisms, and promoting the improvement of medical security operation mechanisms.

　　Second, it is conducive to the realization of the "benefit without cost" handling effect. By purchasing services, the government has reduced the pressure of setting up institutions and personnel, and changed "supporting people to do things" into "doing things without supporting people". At the same time, insurance companies strengthen the supervision of medical behavior and the control of medical expenses, and enlarge the efficiency of fund use. In the long run, by introducing competitive employment mechanism and moderate competition, the total government expenditure can be reduced and the effect of "benefiting without cost" can be achieved.

　　Third, it is conducive to improving service quality and giving play to actuarial advantages. Insurance companies give full play to the advantages of service level and quality, which is conducive to improving people’s satisfaction and government image. At the same time, give full play to the advantages of actuarial technology and assist the government to improve the basic medical insurance compensation and adjustment plan.

　　At this stage, with the comprehensive establishment of the basic medical insurance system and the growth of residents’ income, the total health expenditure has increased rapidly, from 367.87 billion yuan in 1998 to 1,453.54 billion yuan in 2008, with an average annual growth rate of 14.7%.

　　With the rapid development of commercial health insurance, the proportion of total health expenditure increased from 0.9% in 1999 to 4% in 2008. The proportion of commercial health insurance payment expenditure to personal health expenditure increased from 0.49% to 3%.

　　Proportion of commercial health insurance in total health expenditure from 1998 to 2008

　　Proportion of commercial health insurance payment to personal expense burden from 1998 to 2008

　　The sixth feature: the diversification trend of health insurance product types is obvious.

　　After 2000, disability income loss insurance and nursing insurance products came out one after another, and the types of health insurance products were diversified.

　　For example, in terms of medical insurance, the industry has launched high-end medical insurance to ensure globalization, which has the characteristics of comprehensive protection (not limited to directories and hospitals), high protection (generally more than one million) and excellent service (24-hour hotline service and global emergency rescue, etc.).

　　In critical illness insurance, the industry has launched anti-cancer special insurance.

　　In terms of disability income loss insurance, in November 2008, PICC Health launched "Jinfuli" group disability income loss insurance to protect the income loss of people disabled by diseases and accidental injuries in enterprises and institutions, so that they can maintain their living standards after disability.

　　In terms of long-term care insurance, in 2005, Cathay Life launched "Kangning Long-term Care Health Insurance", which is aimed at young and middle-aged people aged 18-55. By purchasing this product, the insured can prepare nursing care for the elderly when they are financially well-off and healthy.

　　three

　　-Insurance Today-

　　The third step in 38 years: 2009-2019

　　The new medical reform is superimposed on the new technology, and the health insurance has embarked on the fast lane for ten years, and the premium has reached one trillion, which has finally become the most important growth pole.

　　With the help of new medical reform and new technology, health insurance at this stage has entered a stage of rapid development.

　　In 2009, the "Opinions of the Central Committee of the Communist Party of China and the State Council on Deepening the Reform of Medical and Health System" was issued, which started the curtain of medical reform in China, and the policy dividend was released continuously. The development of commercial health insurance entered the fast lane and gradually became an important part of the medical security system.

　　For example, health insurance has become one of the "new forces" in medical reform by fully participating in major illness insurance, health insurance tax preference, long-term care insurance and basic medical insurance handling. The development of commercial health insurance at this stage presents seven characteristics.

　　The first major feature: at the level of national policy support, commercial health insurance is positioned as the "new force" of medical reform.

　　Since the new medical reform in 2009, the CPC Central Committee and the State Council have always attached great importance to the role of commercial health insurance in the multi-level security system, intensively issued a number of important documents to promote commercial health insurance, and clearly planned the positioning and development of commercial health insurance in a number of heavy documents.

　　"Opinions of the Central Committee of the Communist Party of China and the State Council on Deepening the Reform of the Medical and Health System" was promulgated and put forward:

　　Accelerate the establishment and improvement of a multi-level medical security system covering urban and rural residents, with basic medical security as the main body and other forms of supplementary medical insurance and commercial health insurance as supplements.

　　In 2013, the State Council’s Opinions on Promoting the Development of Health Service Industry planned commercial health insurance as the core area of health service industry.

　　In 2014, "Several Opinions of the State Council on Accelerating the Development of Modern Insurance Service Industry" positioned commercial health insurance as an important pillar of social security system, the main undertaker of individual and family business security plans, the important provider of health security plans initiated by enterprises and institutions, and the main participant in the market-oriented operation of social insurance.

　　In 2004, "Several Opinions of General Office of the State Council on Accelerating the Development of Commercial Health Insurance" positioned commercial health insurance as a "new force" in deepening the reform of medical and health system, developing health service industry and promoting economic upgrading and efficiency upgrading.

　　In 2016, the "Healthy China 2030" Planning Outline proposed to improve the multi-level medical security system with basic medical security as the main body and other forms of supplementary insurance and commercial health insurance as supplements.

　　The introduction of the above policies has provided important support for promoting the development of commercial health insurance and promoting the integration of commercial health insurance and basic medical insurance.

　　Sorting out the Important Policy Documents in 2009-2019

　　The second major feature: at the regulatory level, the newly revised Measures for the Administration of Health Insurance was issued, and it was positioned as an important part of the multi-level medical security system and an important field for the industry to serve people’s livelihood.

　　In order to further promote and standardize the development of health insurance, in December 2019, China Banking and Insurance Regulatory Commission issued the newly revised Measures for the Administration of Health Insurance. The main revisions and innovations are as follows:

　　First, health insurance is positioned as an important part of the national multi-level medical security system.

　　Second, on the surname "Bao" of health insurance, we insist on the guarantee attribute of health insurance, emphasizing that the purpose of developing health insurance is to improve the people’s health protection level, clarify the product characteristics and requirements of various health insurance products, and incorporate medical accident insurance into the scope of health insurance.

　　Third, in the health insurance surname "Jian", support the combination of health insurance and health management, provide services such as disease prevention and chronic disease management, reduce health risks and reduce disease losses.

　　Fourth, in the era of promoting industrial development and adapting to the times, health insurance products are encouraged to provide protection for new medical methods, new drugs and new devices, support medical progress and promote the development of health industry. Comply with the characteristics of the Internet era, and support the convenience of health insurance contract performance through digital technology and other means.

　　Fifth, in supporting the long-term medical insurance, it is clear that the long-term medical insurance can adjust the rate to cope with the rising medical expenses caused by the change of disease spectrum and the progress of medical technology, and support the development of the health insurance product structure in the long-term direction.

　　In order to standardize the development and sales of long-term medical insurance products with adjustable rates and protect the legitimate rights and interests of consumers, the General Office of China Banking and Insurance Regulatory Commission issued the Notice on Issues Concerning the Adjustment of Long-term Medical Insurance Products’ Rates on March 25th.

　　In addition, in 2013, the former China Insurance Regulatory Commission issued the Experience Incidence Table of Major Diseases in China Life Insurance Industry (2006-2010), including two tables of experience incidence of 6 diseases (male tables, female tables) and two tables of experience incidence of 25 diseases (male tables, female tables).

　　This table of incidence of serious diseases, which is used for product pricing and liability reserve evaluation, has played an important role in promoting the rapid development of critical illness insurance in recent years.

　　The third major feature: promoting the full coverage of major illness insurance for urban and rural residents and achieving strict supervision.

　　In August 2012, six ministries and commissions, including the National Development and Reform Commission and the former China Insurance Regulatory Commission, jointly issued the Guiding Opinions on Carrying out Serious Illness Insurance for Urban and Rural Residents, implemented the serious illness insurance system, and made it clear that serious illness insurance is an extension of basic medical insurance, an institutional arrangement to further protect the high medical expenses incurred by seriously ill patients on the basis of basic medical insurance, and adopted the way of purchasing serious illness insurance from commercial insurance institutions.

　　On July 22nd, 2015, the State Council Conference decided to fully implement the serious illness insurance for urban and rural residents. Li Keqiang, Premier of the State Council of the People’s Republic of China put forward:

　　Using part of social security funds to buy commercial insurance and enlarge the multiple advantage is a new path with characteristics and effectiveness that we have explored in medical reform.

　　The combination of social security and commercial insurance is a major innovation to continuously deepen medical reform.

　　Since 2013, the former China Insurance Regulatory Commission has successively issued the following documents: Rules for Compiling Solvency Reports of Insurance Companies-Answers No.14: Minimum Capital for Serious Illness Insurance for Urban and Rural Residents; Interim Measures for the Management of Serious Illness Insurance for Urban and Rural Residents of Insurance Companies; Notice on Exempting Insurance Companies from Supervision Fees for Operating Serious Illness Insurance for Urban and Rural Residents; Statistical System for Serious Illness Insurance, etc., to strictly supervise insurance companies’ serious illness insurance business, while reducing solvency requirements and exempting supervision fees. In addition, the former CIRC also instructed the insurance industry association to issue the "model clauses of medical insurance for serious illness groups of urban and rural residents (types A and B)".

　　In October 2016, the former China Insurance Regulatory Commission issued five systems, including the Interim Measures for the Bidding Management of Serious Illness Insurance for Urban and Rural Residents of Insurance Companies, which put forward more clear and detailed requirements for insurance companies to participate in the bidding management, service standards, financial accounting, risk adjustment and market withdrawal of serious illness insurance, and promoted the comprehensive promotion of the serious illness insurance system to standardization and perfection.

　　Regulatory requirements of the former CIRC on major illness insurance for urban and rural residents

　　In March 2013, the former China Insurance Regulatory Commission announced the list of major illness insurance business qualifications, and a total of 34 insurance companies obtained business qualifications (17 personal insurance companies and 17 property insurance companies).

　　In February, 2019, China Banking and Insurance Regulatory Commission adjusted the list of business qualifications for serious illness insurance according to the relevant regulations and the situation since the business was launched. There were 17 life insurance companies and 15 property insurance companies operating serious illness insurance. Five companies (Taikang Pension, Soochow Life Insurance, Auspicious Life Insurance, Lian Life Insurance and Guoyuan Agriculture) have newly entered the list, and another seven companies have been adjusted (mainly because they have not carried out serious illness insurance business after obtaining qualifications).

　　Through the serious illness insurance system, the actual reimbursement rate of seriously ill patients is increased by 10%-15% on the basis of basic medical insurance, which greatly alleviates the problem that urban and rural residents become poor and return to poverty due to illness. By the end of 2019, a total of 18 insurance companies had undertaken business, covering 1.16 billion people, and the premium scale exceeded 70 billion yuan.

　　The fourth feature: the introduction of tax-excellent health insurance system.

　　On May 6, 2015, the executive meeting of the State Council decided to give personal income tax preference to commercial health insurance on a pilot basis, and use more resources to better protect people’s livelihood.

　　Later, the Ministry of Finance, State Taxation Administration of The People’s Republic of China, the former China Insurance Regulatory Commission and other ministries and commissions issued the Notice on Launching the Pilot Work of Personal Income Tax Policy for Commercial Health Insurance and the Notice on Implementing the Pilot Work of Personal Income Tax Policy for Commercial Health Insurance, and determined the beneficiary groups, preferential standards, pilot areas, demonstration clauses and other matters.

　　The former CIRC issued the Interim Measures for the Management of Personal Tax Preferential Health Insurance Business, which clarified the requirements of insurance companies in terms of business qualifications, products, business, finance, system and information disclosure.

　　In January 2016, the former General Office of the China Insurance Regulatory Commission issued the Notice on Issues Related to Personal Tax Preferential Health Insurance Business and the Notice on the Official Launch of Commercial Health Insurance Information Platform, which clearly defined the issues related to personal tax preferential health insurance, put forward requirements for product approval, tax preferential identification code, business promotion, business supervision, online content of commercial health insurance information platform, online docking process with health insurance platform and communication mechanism, and officially started the pilot work of tax preferential health insurance.

　　Relevant ministries and commissions have implemented a number of documents on tax-preferential health insurance.

　　Since February 2016, the former China Insurance Regulatory Commission (CIRC) has published a list of six batches of 30 insurance companies that have obtained tax-excellent health insurance qualifications. Insurance companies that have obtained business qualifications actively develop exclusive products and promote the pilot implementation of tax-excellent health insurance policies.

　　On April 19th, 2017, the executive meeting of the State Council decided to extend the tax-preferential health insurance policy from 31 pilot cities to the whole country from July 1st, 2017. On April 28th, 2017, the Ministry of Finance, State Taxation Administration of The People’s Republic of China and the former China Insurance Regulatory Commission jointly issued the Notice on Launching the Pilot Work of Individual Income Tax Policy for Commercial Health Insurance, which extended the tax-preferential health insurance policy to the whole country.

　　By the end of 2019, there were 420,000 tax-excellent health insurance policies in effect, with a cumulative premium of 1.57 billion. Among them, in 2019, there were 342,601 effective policies (101,304 new effective policies), and the paid-in premium was 577 million yuan (304 million new effective policy premiums).

　　The fifth feature: the integration of "great health" continues to advance.

　　In-depth cooperation of "health insurance" and "health service": insurance companies further strengthen cooperation with medical, physical examination and nursing institutions;

　　On the one hand, it provides health risk assessment, physical examination, health consultation and other services for the insured in health products;

　　On the other hand, by exerting the control power of the payer, strengthening the supervision of medical behavior and controlling medical expenses, and promoting the standardization of medical service behavior.

　　Capital investment of "insurance fund" and "health industry": By investing in the health industry, insurance companies can build a "big health" industrial chain, service chain and ecological circle covering health insurance, health services, medical care and old-age communities, effectively extending the space for health insurance protection, service and investment, which can not only promote the development of main business, deepen service connotation, strengthen risk management and control, but also extend the investment chain, form diversified profits and enhance competitive advantage.

　　"Great health" has become an important strategic choice for major insurance companies to establish and consolidate their competitive advantages.

　　For example, Taikang Group built a "big health industry ecosystem".

　　China Life established the Big Health Industry Fund and started to build a healthy layout of "insurance+medical care";

　　Ping An Group focuses on the two strategies of "big financial assets" and "big medical health".

　　Reverse cross-border aspects of "health industry" and "health insurance": health service giants have started the extensive layout of medical health industry, such as Fosun Group’s cross-border entry into the health insurance market and obtaining the license of professional health insurance company; Companies such as Mei Nianda Health are also actively applying for health insurance company licenses.

　　Through the layout of commercial health insurance, it interacts with medical insurance fee control, chronic disease management and disease prevention, which may lead to a new business model.

　　The sixth feature: critical illness insurance and millions of medical insurance have become popular types of insurance.

　　(1) critical illness insurance continues to enrich.

　　For insurance companies, critical illness insurance has high new business value, is easy for sales staff to sell, and the average premium is appropriate, which is easy for customers to accept, and has become the main sales product of the industry security category.

　　During this period, the number of critical illness insurance products of various insurance companies generally follows the practice of "the more the better" (the incidence of 25 standard critical illnesses exceeds 95%), and the proportion of products with 70-100 types of critical illness has increased significantly.

　　At the same time, companies have launched multiple (the insured diseases are divided into several groups, and each group of diseases can be paid once) and multiple (the insured diseases can be paid multiple times without grouping) products.

　　In addition to severe cases, the responsibilities of mild and moderate diseases are introduced. On March 31st, 2020, the insurance industry association solicited opinions from the industry on the Revised Code for the Use of Disease Definitions in critical illness insurance (Draft for Comment), introduced the definition of mild diseases for the first time, improved and expanded the original definition of 25 severe diseases to 28 severe diseases and 3 mild diseases, and appropriately expanded the coverage.

　　② Million medical insurance has become a product of online celebrity.

　　Millions of medical insurance is a major innovation in the commercial health insurance market in recent years. By setting a higher out-of-pocket amount (generally 10,000 yuan), expanding leverage and increasing the amount of protection, the shortcomings of high medical expenses in the medical security system are made up.

　　This product provides a higher insurance coverage at a lower premium, which is of great significance to meet the people’s medical security needs and improve the market structure of health insurance products.

　　Millions of medical insurance products have simple design and clear product responsibilities, and are mainly sold through the Internet platform, which conforms to the consumption habits in the Internet era, which is one of the reasons for its rapid development.

　　In 2018, the premium scale reached 17 billion yuan, and it is expected to reach about 30 billion yuan in 2019.

　　The seventh feature: health insurance has become an important growth pole and business sector in the insurance industry, accounting for a significant increase in the total health expenditure and personal health expenditure.

　　In recent years, the premium of commercial health insurance has developed rapidly. After the premium exceeded 100 billion yuan in 2013, it exceeded 200 billion yuan, 400 billion yuan and 500 billion yuan in 2015, 2016 and 2018.

　　By the end of 2019, the industry health insurance premium exceeded 700 billion yuan.

　　It took 12 years (from 2002 to 2013) and 2 years (from 2013 to 2015) for the health insurance premium of the insurance industry to reach 100 billion yuan. At present, the annual net growth is hundreds of billions of yuan.

　　The premium of commercial health insurance increased rapidly from 57.4 billion yuan in 2009 to 706.6 billion yuan in 2019, with an average annual growth rate of 28.5%, much higher than the growth of GDP and the average annual growth rate of personal insurance of 13.9%.

　　The proportion of commercial health insurance premiums to personal insurance increased from 6.9% in 2009 to 23.2% in 2019 (see Table 12), and the proportion increased significantly.

　　At the same time, the density and depth of commercial health insurance have been significantly improved, from 43 yuan per person and 0.16% in 2009 to 504.7 yuan and 0.71% in 2019.

　　The compensation amount of commercial health insurance increased from 21.7 billion yuan in 2009 to 235.1 billion yuan in 2019, with an average annual growth rate of 26.9%, which was 15.2% higher than that of personal insurance. The proportion of commercial health insurance claims to personal insurance has also increased from 14% to 36.8% (see Table 14).

　　Regardless of the proportion of business or compensation, commercial health insurance has become an important growth pole and business segment of personal insurance.

　　The growth of commercial health insurance and the proportion of personal insurance in 2009-2019

　　Density and depth of commercial health insurance in 2009-2019

　　Payment of commercial health insurance and proportion of life insurance in 2009-2019

　　The proportion of commercial health insurance premiums in total health expenditure increased from 3.3% in 2009 to 9.4% (see Table 15). The proportion of commercial health insurance claims to personal health expenditure increased from 3.3% in 2009 to 10.3% (see Table 16). The value of commercial health insurance in the financing and payment of total health expenditure has been strengthened year by year.

　　Proportion of commercial health insurance premium to total health expenditure in 2009-2019

　　Proportion of commercial health insurance payment to personal health expenditure in 2009-2019

　　The proportion of commercial health insurance premiums in basic medical insurance (including urban workers, urban and rural residents and the new rural cooperative medical system) fund income increased from 12.4% in 2009 to 30.3% (see Table 17). The proportion of commercial health insurance claims in the basic medical insurance fund expenditure increased from 5.8% in 2009 to 11.8% (see Table 16). By the end of 2019, through the development of critical illness insurance and other businesses, the insurance industry has accumulated more than 1.1 trillion yuan of long-term health insurance risk reserve for the insured.

　　Commercial health insurance accounted for the proportion of basic medical insurance in 2009-2019.

　　four

　　-Insurance Today-

　　Based on the current trillion-dollar period, this paper analyzes the five characteristics of health insurance business in 2019.

　　In 2019, China’s health insurance premium income was 706.6 billion yuan, a year-on-year increase of 29.7%, accounting for 23.2% of the personal insurance business, an increase of 3.2 percentage points over the previous year. The following is a multi-dimensional analysis of the data related to health insurance business in 2019, and summarizes five characteristics.

　　The first feature: the scale of health insurance premium is expected to reach one trillion yuan in 2021, exceeding the scale of auto insurance, and it will keep pace with property insurance in 2025.

　　According to the current premium growth rate, it is estimated that the scale will reach one trillion yuan in 2021.

　　In the past five years, the average annual growth rates of health insurance, auto insurance and property insurance were 30.8%, 7.2% and 9.9%, respectively. According to this rate, health insurance premiums are expected to exceed auto insurance in 2020 (at the latest in 2021).

　　Meanwhile, from 2015 to 2019, the ratio of commercial health insurance to property insurance increased from 30.2% to 60.7%. China Banking and Insurance Regulatory Commission and other 13 ministries and commissions’ Opinions on Promoting the Development of Commercial Insurance in the Social Service Field put forward that commercial health insurance will exceed 2 trillion yuan by 2025, and the average annual growth rate will be maintained at 19% in the next six years.

　　It is expected that the business scale of commercial health insurance and property insurance will basically keep pace.

　　The growth of commercial health insurance, auto insurance and property insurance in recent five years

　　In fact, in the first two months of 2020, health insurance premiums have surpassed auto insurance premiums, and the leading edge has reached 30 billion yuan.

　　The second feature: health insurance premiums of personal insurance companies account for nearly 90% (among which professional health insurance companies account for about 5%). In recent years, property insurance companies have grown faster, and the introduction of long-term medical insurance may change the trend.

　　In 2019, in the commercial health insurance business, the premiums of life insurance companies were 622.57 billion yuan, accounting for 88.1%; The premium of property insurance companies was 84.03 billion yuan, accounting for 11.9%.

　　In recent years, large property insurance companies (such as PICC P&C) have vigorously developed government medical insurance business, while Internet property insurance companies such as Zhongan and Taikang Online have vigorously developed millions of medical insurance, which has greatly promoted the development of short-term health insurance business.

　　In the past three years, the premium growth of health insurance business of property insurance companies has exceeded that of life insurance companies, which has promoted its proportion to increase continuously (the market share has increased by 4.4 percentage points in the past decade).

　　Because property insurance companies can only operate short-term health insurance business, but not long-term health insurance business, especially the regulatory authorities support the long-term health insurance. With the introduction of long-term medical insurance products by personal insurance companies based on the Notice on Issues Related to the Adjustment of Long-term Medical Insurance Product Rates, it is expected that some million medical treatments will be converted into long-term medical insurance products, which will have a long-term impact on the development of health insurance business of property insurance companies.

　　Proportion of commercial health insurance premiums of personal insurance companies and property insurance companies

　　In 2019, the total premiums of seven professional health insurance companies (PICC Health, Ping An Health, Harmony Health, Kunlun Health, Taibao Allianz Health, Fosun United Health and Ruihua Health) were 34.37 billion yuan, accounting for 5.5% of the health insurance premium income of life insurance companies and 4.9% of the industry health insurance premium.

　　Among them, PICC health premium income was 22.42 billion yuan, accounting for 65.2% of health insurance companies.

　　The third feature: Long-term health insurance continues to grow rapidly, and the premium exceeds 400 billion yuan; Short-term health insurance has maintained rapid growth, with premiums exceeding 200 billion yuan.

　　In 2019, the long-term health insurance premium income was 467.85 billion yuan, a year-on-year increase of 26.6%, accounting for 66.2%; Short-term health insurance premium income was 238.74 billion yuan, a year-on-year increase of 36.3%, accounting for 33.8%.

　　In recent years, with the accelerated transformation of the industry and the strengthening of the development of security products, long-term health insurance (mainly in critical illness insurance) has developed rapidly; With the rapid development of urban and rural residents’ serious illness insurance and millions of medical insurance, short-term health insurance is also booming.

　　Proportion of long-term health insurance and short-term health insurance business

　　The fourth feature: health insurance is mainly personal business, accounting for 3/4; Group health insurance business accounts for 1/4.

　　Personal health insurance business continued to grow rapidly, further occupying a dominant position. In 2019, the premium income was 535.55 billion yuan, a year-on-year increase of 30.0%, accounting for 75.8%; The premium income of group health insurance business was 171.05 billion yuan, a year-on-year increase of 28.7%, accounting for 24.2%.

　　From 2015 to 2019, the proportion of personal health insurance business has further increased, mainly because it is mainly long-term health insurance, and the proportion of renewal business has gradually increased, which is conducive to its scale expansion.

　　Proportion of personal health insurance and group health insurance business

　　The fifth feature: health insurance is mainly sickness insurance and medical insurance, accounting for 99%; Nursing insurance and disability income loss insurance only account for 1%.

　　In 2019, from the perspective of business insurance, the premium income of sickness insurance was 455.23 billion yuan, a year-on-year increase of 28.1%, accounting for 64.4%. Long-term critical illness insurance products have both new single premium and renewal premium, which has snowballing effect.

　　Medical insurance premium income was 244.22 billion yuan, up 32.2% year-on-year, accounting for 34.6%, and it has maintained a growth rate of about 30% for five years.

　　In recent years, the comprehensive coverage of urban and rural residents’ serious illness insurance and the increase of premiums, as well as the rapid rise of millions of medical insurance, have promoted the rapid development of medical insurance business.

　　Nursing insurance premium income was 6.54 billion yuan, up 66.8% year-on-year, accounting for 0.9%.

　　Financial management nursing insurance products (the premium in 2016 was 120.8 billion yuan) which made rapid progress in previous years, with the background of strict supervision, rectification of short-term and medium-term products, and industry return guarantee, the premium has shrunk dramatically and basically withdrawn from the market.

　　The rapid growth of nursing insurance in 2019 was mainly due to the insurance companies’ extensive participation in the premium income of government basic nursing insurance.

　　The insurance premium income of disability income loss was 610 million yuan, a year-on-year decrease of 14.1%, accounting for 0.1%.

　　In recent years, the premium of disability income loss insurance has been between hundreds of millions, accounting for about 0.1%, which is basically negligible.

　　Proportion of four business types of commercial health insurance

　　postscript

　　Looking to the future, looking for 8 key links in the long-term development of 2 trillion health insurance.

　　From the practice of commercial health insurance for more than 30 years, the long-term development of health insurance needs double efforts:

　　On the one hand, it is necessary to strengthen professional ability and quality service to provide diversified and multi-level health care options for urban and rural residents;

　　On the other hand, it should be fully integrated into the construction of medical security system and get policy support.

　　The first key link: fully integrated into the construction of medical security system.

　　The establishment and perfection of the medical security system is an important driving force for the development of commercial health insurance, and the continuous improvement of the basic medical insurance system in China is also an important foundation and support for the medical security construction of commercial health insurance services.

　　In recent years, the insurance industry has significantly expanded its service field by comprehensively carrying out supplementary business and handling business of basic medical insurance.

　　Looking to the future, the insurance industry should participate in the basic medical insurance in more fields, with greater intensity and depth, and fully and deeply participate in the long-term care insurance, payment mode reform (DRG), flight inspection, medical insurance fee control and other handling services.

　　The second key link: the need for further policy support and development environment.

　　Commercial health insurance business has strong policy, which is highly related and closely linked with the medical security system. Therefore, only with the strong support of policies can the vitality of health insurance in generate be fully realized.

　　For example, the state has introduced a preferential tax policy for purchasing supplementary medical insurance, which has significantly promoted the development of the group health insurance market; Through the personal tax preferential health insurance policy, the residents’ awareness of protection has been significantly improved.

　　In the future, the development of health insurance still needs to fully rely on the joint efforts of government guidance and policy support and the market-oriented operation of insurance companies, so that more urban and rural residents can enjoy the diversified protection of health insurance. In fact, only by fully relying on the government to create a good development environment can health insurance achieve sound and rapid development.

　　At the same time, the development of commercial health insurance can effectively mobilize social resources to participate in the construction of the medical insurance system, prevent the people from pinning their hopes and hopes on the basic medical insurance system, release the pressure on the basic medical insurance system, and play the role of "stabilizer" and "pressure regulating valve" of the medical insurance system.

　　The third key link: need new technology+professional management.

　　Commercial health insurance is obviously different from life insurance business and property insurance business in product development, risk management and control, information system and customer service, so it must be professionally operated.

　　Risk management and control is the "lifeline" of the continuous operation of health insurance. It should be integrated into sales, underwriting, daily management, claims and other links to build a whole-process and all-round risk management and control system, so as to reduce the payout ratio of health insurance and improve operating efficiency.

　　The continuous development of innovative technologies will become a booster for the rapid development of the health insurance industry, which will promote development through innovative technologies represented by artificial intelligence, blockchain, big data and cloud computing at the customer, channel, operation, product, risk control and system level.

　　The application of new technology will bring about changes in health insurance sales, risk control, system and management service mode. Personalized, scene-based, inclusive and mutual-aid health insurance products are expected to accelerate development.

　　The fourth key link: to play a greater role.

　　With the acceleration of aging society and urbanization, the continuous improvement of people’s living standards and the release of medical security needs, the health insurance market has great potential.

　　Therefore, the industry should further increase the input of resources and improve the management level and professional ability. The role of health insurance includes five aspects:

　　First, an active participant in the socialized operation of basic medical insurance;

　　Second, the main undertaker of personal and family business health protection plan;

　　Third, it is an important provider of enterprise business health protection plan;

　　Fourth, it is a powerful promoter of the rapid development of health service industry;

　　Fifth, a staunch supporter of the construction of "Healthy China".

　　The fifth key link: increase tax support and release the market potential of health insurance.

　　Preferential tax policy is the main lever to promote the development of health insurance, which can transform potential demand into real purchasing power. Encourage society, enterprises and individuals to pay close attention to health protection and release effective demand;

　　First, comprehensively summarize and sort out the pilot practice of tax-preferential health insurance, improve policies, expand product range, make full use of tax-preferential leverage, and expand more and better health insurance products to the tax-preferential scope.

　　Second, it is suggested to further clarify the definition and coverage of "supplementary medical insurance" in the enterprise tax preferential policy, and to study and further improve the tax preferential ratio.

　　The sixth key link: deepen medical insurance cooperation and improve the healthy development of commercial health insurance.

　　① On the basis of effectively protecting personal privacy and information security, integrate and establish a medical data sharing and updating mechanism, and build a "big data" platform for medical health, so that commercial insurance can play its actuarial advantage and realize scientific pricing.

　　② The Opinions on Promoting the Development of Commercial Insurance in Social Services proposes to explore the information sharing between the commercial health insurance information platform and the national medical insurance information platform according to regulations. It is suggested that the relevant ministries and commissions of the state should speed up the implementation of policies, promote commercial insurance institutions to catch up with the "National Medical Insurance Information Expressway", realize one-stop settlement of commercial insurance, facilitate customers, reduce the transaction cost of claims, strengthen the application of medical and health big data, enrich risk control means and improve the efficiency of fee control.

　　(3) As the main third-party payment institution, give play to the restrictive role of health insurance on medical services and medical expenses, and support it to participate in hospital quality supervision and evaluation, medical service pricing and other activities, so as to form a joint force of supervision with social medical insurance and optimize the utilization efficiency of medical resources.

　　The seventh key link: realize the transformation of government functions and promote the participation of commercial insurance in basic medical insurance management.

　　According to the new institutional economics, the key to decide whether the government directly produces or buys services in the market is the transaction cost.

　　Expenditure on public goods does not mean that costs and benefits need not be considered, and the efficiency of government financial input should also be emphasized for social medical insurance. In the process of handling basic medical insurance, the insurance industry should give full play to its comparative advantages and enlarge the efficiency of the use of basic medical insurance funds.

　　There are two main spaces for insurance companies to handle basic medical insurance: one is stock business, and the other is incremental business.

　　Therefore, we should take advantage of the opportunity to encourage the purchase of services and control the establishment of public institutions, and the industry should first participate in incremental business, and then gradually strive for stock business.

　　The eighth key link: vigorously develop various types of health insurance, and promote the health insurance from health protection to the combination of "health protection+health promotion"

　　In developed countries such as the United States, commercial health insurance, as an important payer of medical expenses, is changing its role from "passive claim settlement" to "whole process health management".

　　China commercial health insurance contributes to the strategy of "Healthy China", giving full play to the unique position of commercial health insurance in contacting customers, medical institutions, health management institutions and nursing institutions, providing customers with comprehensive protection products such as medical treatment, illness, rehabilitation and care, as well as all-round health care services, and taking the road of "health insurance". So as to achieve "the healthier the patient, the healthier the commercial insurance will be".

　　After nearly 38 years of development, commercial health insurance has once again shown the momentum of flying.

　　The above is only given to the 2 trillion health insurance in 2025.

　　(Source of this article: public information and industry exchange data compiled by the author)

This article was first published on WeChat WeChat official account: Today’s Insurance. The content of the article belongs to the author’s personal opinion and does not represent Hexun.com’s position. Investors should operate accordingly, at their own risk.

Grace Chow issued a document announcing the breakup, pointing out that the man was unfaithful to his feelings.

1905 movie network news On April 23rd, Grace Chow posted a long article on the social platform announcing that she had broken up with her boyfriend Show Lo, who had been in love for nine years, and said that the reason for breaking up was that she found that she had cheated on her more than once when looking at her mobile phone. Grace Chow said that Show Lo "dates different girls almost every day" and "has a long-term unfair relationship with her female artists and makeup artists", and all kinds of performances made her completely desperate for this relationship, so she resolutely chose to cut off her love affair.

After Grace Chow posted the article, the topic of the two immediately set off a hot search list. Many netizens came to the comment area to "uphold justice" for the woman, and cursed Show Lo "love rat", saying that her former affectionate person in film and television dramas had completely collapsed.

Show Lo, who made her debut as a singer in her early years, was once known to the audience because of her participation in the popular Taiwan Province idol drama. In recent years, she has gained popularity because of the variety "Extreme Challenge", movies and so on.

Show Lo often shows people with affectionate male actors and funny positive roles in his film and television works. Now when looking back at these works, it is inevitable that there are some ironies. How many of his works have you seen?

In 2006, Show Lo cooperated with Big S in the TV series "Love Around the Corner", in which he played the role of Qin Lang, a warm and kind dream-chasing teenager, who took good care of the hostess and was once regarded as the "Bai Yueguang" male host in Taiwan Province idol drama.

In 2009, a film "Shanghai Sweetheart" deeply imprinted "Mushroom Head Lin Dalang" in the audience’s mind, and Show Lo created the image of a simple and shy boy.

In 2013, Show Lo played "kong xu gong zi" in Stephen Chow’s Journey to the West, and the humorous conversation between him and his maid and the phrase "emptiness or kidney deficiency" also became the classic memory points of the film.

In 2016, Show Lo once again participated in the movie "The Mermaid" by Xingye, which played the role of "Myna", an octopus with unrequited love for a mermaid (Jelly Lin), and was a think tank among mermaids.

In the same year, the variety show "Extreme Challenge" was launched in the first season. As a member of the "Top Men’s Gang", Show Lo was widely loved by the audience with the role of "Beauty Luo". So far, the program has been recorded into the sixth season, which has brought great popularity and voice to Show Lo. Since then, he has also appeared in the film version of Extreme Challenge.

In 2017, Show Lo co-starred with Jackie Chan and Nana Ou-yang in the film, which played a high-tech criminal with a mysterious identity.

This breakup event may reshuffle the audience’s cognition of Show Lo’s "deep feelings for people". Many netizens shouted "Three Views Subversion" and "Unbelievable" after reading Grace Chow’s long article. Show Lo himself has not yet made a formal response to the incident.

In winter, Ding ‘an, Hainan, the temperature of more than 20 degrees Celsius and the calm Nanli Lake attracted the national rowing team to come here for the last winter training before the Paris Olympic Games.

A few days ago, in a highly competitive 4× 2,000m single boat racing confrontation training, the women’s sculls team showed a very high level. Cui Xiaotong, Lu Yang, Zhang Ling and Chen Yunxia, women’s quadruple sculls champions at the Tokyo Olympic Games, were very good at seizing every opportunity to temper themselves, and entered the Paris Olympic time rhythmically, so that every minute of hard work shone with gorgeous colors and the struggling youth did not leave any regrets.

As a physical training project, the winter training of rowing teams has always been boring and hard, with dozens of kilometers of long strokes, coupled with strength rooms and dynamometer, every day there is a feeling that the body is completely drained. However, the players are working hard to complete these training amounts, because only when they have sufficient physical reserves can they have a bottom in their hearts when they reach the international arena.

"I am in good shape now, and I hope that there will be new breakthroughs in various abilities at the end of winter training." "The goal of my winter training is to restore my physical fitness to my peak moment, and now the dynamometer and strength are close." Lu Yang and Cui Xiaotong, two elder sisters on the women’s quadruple boat, said that younger Chen Yunxia and Zhang Ling went all out to make the boat more dynamic and energetic.

The women’s quadruple sculls event is the traditional advantage event of China rowing-in 1993, it was the first to win the World Championship of Olympic events; In 2008, it was the first to win the Olympic champion; Today, it is also the one who hopes to defend the Olympic gold medal.

It is precisely because of this dream that after the Tokyo Olympic Games, Lu Yang, who is 29 years old, did not choose to retire. Cui Xiaotong, who has always been particularly painful to resume training, chose to continue. Chen Yunxia and Zhang Ling also overcame their respective injuries and difficulties to prepare for the war. Hard sweat earned the champion from the World Cup to the World Championships in 2022, which also made a good start for the Paris cycle. However, two world powerhouses, Britain and the Netherlands, have to "smash" women’s quadruplets in this cycle, which has a great impact. Throughout the 2023 season, opponents have maintained a high level of competition, and won the championship and runner-up in the World Championships, while our women’s quadruplets ranked third.

"The main reason is that the state and ability of four people have not reached the best. We will not lose confidence in ourselves because we lost a championship." Lu Yang was very calm and sincere when summing up the 2023 competition. "In this winter training, everyone must first practice their individual abilities, and then four people will work together to improve the performance of the whole boat."

"There are only 200 days before the Paris Olympic Games, and this period is very important for us." Cui Xiaotong also agrees with Lv Yang’s point of view. "Compared with our competitors, we still have an advantage. After all, they have never surpassed our best results in the world at the Tokyo Olympics, so we must seize this last time and restore our ability to the peak level, which is very important for us."

Temporary difficulties will not hinder the girls’ progress, and more clear goals will make them more indomitable. "There are still the last 200 days. The more you get to the back, the more you have to challenge yourself." Zhang Ling is ready to fight for the Paris Olympic Games in one breath. "We have gradually adapted to the training volume and intensity. Although it will be very difficult to reach the coach’s goal, we can only improve our ability if we try hard and break through the limit."

"The four of us are making progress, and the current state is much better than last year." Chen Yunxia and his companions have gained some gains from their efforts, and they are also looking forward to using more efforts to realize their ultimate dreams. "Everyone is now more strict with themselves ideologically. We know that if we want to win, we must pay more, which requires us to be stronger in all aspects. " (From January 11th, China Sports Daily, 01 edition)

　　[car home Che Ku Wen] In the F1 World Formula One Championship in 2022, (|) (2.168 million) and Mercedes AMG GT Black Series(368.88 million) shared the responsibility of safety cars. However, aston martin’s safety car has been in trouble recently, which has not only been complained collectively by F1 drivers, but also by safety car drivers. Everyone thinks that its speed is too slow.

　　In order to create excellent performance and live up to the mission, the power system of aston martin V8 Vantage F1 safety car is equipped with a 4.0-liter V8 twin-turbo engine with a maximum power of 534 HP, and specially designed aerodynamic body kit and dynamic adjustment. The car can accelerate from 0 to 100km/h in 3.6 seconds and has a top speed of 314 km/h.

　　Even so, max verstappen, the new F1 driver world champion, described the speed of the safety car in aston martin as "a turtle". Mercedes AMG F1 driver george russell said that the V8 Vantage safety car is about 5 seconds slower than the AMG GT Black Series safety car every lap.

　　Ferrari F1 driver Charles Leclerc also noticed the speed difference between the two safety cars. He said in an interview: "I wanted to complain, but then I checked the degree of the safety car slipping in the corner. I don’t think he (the safety car driver) can do anything, so I don’t want to give him too much pressure."

　　Bernd Melander, the driver of the safety car and a former DTM racer, thanked leclerc for his understanding. "Of course, it’s good for leclerc to see that I’m at the limit. This is all I can do. " Mayrand told the media.

　　Since 1996, Mercedes AMG has been undertaking the responsibility of F1 safety car. In terms of power, the Mercedes AMG GT Black Series is also equipped with a 4.0-liter twin-turbo engine, but the maximum power can reach 730 HP, the acceleration time of 0-100km/h is 3.2 seconds, and the maximum speed is 325 km/h. The huge gap in power may be an important reason why people generally think that aston martin’s safety cars are slow.

　　In the face of doubts, the FIA issued a statement defending aston martin a few days later: "Regarding the recent discussion on safety cars, we must emphasize once again that the main function of safety cars is not to be fast, but to ensure the safety of drivers, track personnel and staff. "The two sides stick to their own words. Who do you think is the fastest safety car? Welcome to discuss!

　　In the car source list of the used car house, we can see that several V8 Vantage 2022 F1 Edition Coupe quasi-new cars are being sold, and the price is 2.2218-2.45 million yuan. Although it is higher than the official guide price, is it attractive to directly mention the existing cars without waiting? (Text/car home Li Yiwen)

　　Caixin New Century reporter Xie Haitao

　　Liu Liguo, dressed in prison uniform, still has a refined air. Born in 1977, he has a clean and fair face, speaks slowly and has a kind face. From time to time, he touches his delicate black-rimmed glasses with his hands.

　　On December 12, 2012, Liu Liguo appeared in court again for trial. In the eyes of the public in China, he seems to be a villain-he is the main culprit in the manufacturing of the largest gutter oil case in China so far.

　　According to the indictment of the prosecution in Ningbo, Zhejiang Province, since December 2007, Liu Liguo has been processing and refining kitchen waste oil into non-edible oil that still contains toxic and harmful substances, knowing that others will pass it off as soybean oil for sale, with sales reaching more than 99.2 million yuan.

　　According to the calculation of 8,000 yuan per ton, the non-edible oil produced by these waste oils is about 12,000 tons. Assuming that all of them flow to the dining table, it is enough for 600,000 Chinese to eat for one year.

　　In August, 2012, the trial of the case once shocked the public all over the country. This case is known as the first case of the whole process of extra-large waste oil in China, involving 58 enterprises, and many well-known food brands were exposed to the use of waste oil, including five listed companies. Henan Jiaozuo Health Yuan Biological Products Co., Ltd. (hereinafter referred to as Jiaozuo Health Yuan), a subsidiary of Health Yuan Pharmaceutical Group Co., Ltd. (600380.SH, hereinafter referred to as Health Yuan Company), is the largest terminal buyer of waste oil in this case.

　　The more fundamental reason why this case shocked the whole country is that this case, together with more than 10 cases of gutter oil that were subsequently tried in various provinces, revealed that gutter oil was put on the table on a large scale in China, and it has changed from suspicion to reality.

　　On July 4th, 2011, a campaign of encirclement and suppression of waste oil, which was supervised by the Ministry of Public Security and originated in Zhejiang, started with Jinan wesen Energy Co., Ltd. (hereinafter referred to as Green Company) of Liu Liguo, and then swept across Shandong and Henan. The official said that it destroyed a black industrial chain of waste oil, which integrates fishing, crude refining, reselling, deep processing, wholesale and retail.

　　In China, gutter oil has been regarded as a scourge in recent ten years, and it is condemned by many people. In fact, not all cooking waste oil is guilty. In essence, cooking waste oil is also a kind of resource, which has legal uses for manufacturing biodiesel and feed oil.

　　Pingyin County, Shandong Province, where Liu Liguo was engaged in the processing of waste oil, was once the place where the sage Confucius came to give lectures, leaving behind the "apricot altar"; In recent ten years, the production of waste oil has become very popular, and there are many "enterprises", which are rarely investigated. Liu Liguo’s enterprise is only a latecomer, and even until he is caught, his waste oil production scale is not the largest.

　　More than a decade ago, Liu Liguo, who had the idea of "wanting all his brothers and sisters in the family to live a good life", was embarrassed and repeatedly hit a wall. A story about a neighboring village getting rich by cooking oil affected his life path. After he was involved in gutter oil in 2003, he tried to make biodiesel and feed oil from gutter oil for several years, but he was once heavily in debt. According to the prosecution’s allegations, since 2007, he began to use waste oil to make "red oil" on the table.

　　People with insight pointed out that the unique external environment of waste oil in Pingyin County and Linyi City, as well as Liu Liguo’s waste oil road, are worthy of reflection by food supervision departments and governments at all levels. At this level, Liu Liguo’s case is only the starting point for eradicating waste oil from the table.

　　In pursuit of Liu Liguo’s life track, he was not an evil person. The evil flower of gutter oil did not break ground in this land of roses that suffered Confucianism in an instant. Everything happens for a reason. Hannah Arendt, a sage, has a theory of "ordinary evil". In short, an ordinary person, who is in a specific environment and becomes a member of a running machine, is also easy to do evil things because he chooses to "obey".

　　What about Liu Liguo to waste oil? The truth doesn’t seem clear. During the trial, seven defendants, including Liu Liguo and his brother Liu Lihai, his eldest brother-in-law Yu Shuangying and his second brother-in-law Lu Jun, collectively retracted their confessions in court, and lawyers also pleaded not guilty.

　　Analyzing the case outside the court and the turbulent public opinion outside the court seems to reveal that gutter oil is in past lives, China, restore a complex social ecology of gutter oil rivers and lakes, face the misunderstanding of policies in related fields, and even the vacuum of supervision by functional departments, which may provide reference for food safety in China.

　　Liu Liguo’s prequel

　　"If the benefits are good, the aluminum factory will not collapse, and he will not reach this point." In the family courtyard of Pingyin Aluminum Factory, a retired worker talked about Liu Liguo with emotion.

　　Pingyin is a suburban county in Jinan City, Shandong Province. Pingyin Aluminum Factory, located in the suburb of the county, is 1 km south, which is Helou Village in Kongcun Town. Kongcun town was named after the ruins of Confucius’ lectures in the Spring and Autumn Period. In 1977, Liu Liguo was born here, with three sisters and one brother, and his father had been a village party secretary for many years. More than ten years ago, he and his two sisters were admitted to school and jumped out of the farm gate, which was envied by the villagers.

　　In the impression of Liu’s third sister, although Liu Liguo is the youngest in the family, he has been sensible and filial to the elderly since childhood. When he was in primary school, he cooked for himself since the third grade in order not to let his mother get up early every day. He is also a quick-witted and diligent person with great energy. For example, when others play poker and games in their spare time, he looks up information and reads books when he is free.

　　After graduating from high school, he was admitted to Shandong Salt Industry School (later renamed Shandong Light Industry Engineering School), a national key secondary vocational school built in Qingdao, known as the "cradle of golden blue collar". Four years of secondary school study, beautiful and economically developed Qingdao, broadened his horizons. After graduating and returning to Pingyin in 1997, he once wanted to do business and open an electronic goods store, but under the influence of his parents, he entered Pingyin Aluminum Factory.

　　Shandong Pingyin Aluminum Factory, located at the foot of Wolong Mountain, the remaining vein of Mount Tai, is an old state-owned enterprise founded in 1966, which belongs to Shandong Metallurgical Industry Corporation. In the 1980s, it was once brilliant, and it was tied with national cotton, bearing bush and standard parts as the four traditional Pingyin factories, which was a place of envy for the surrounding rural youth.

　　Liujia has an indissoluble bond with Pingyin Aluminum Factory. Not only Liu Liguo, but also the main helper in the waste oil processing plant in the future, and those who ended up behind bars with him, have worked in Pingyin Aluminum Plant for a long time.

　　In 1988, after the first phase expansion of Pingyin Aluminum Factory, Liu Liguo’s brother Liu Lihai entered the aluminum factory. In 1994, the second phase of expansion and recruitment, Liu Liguo’s eldest brother-in-law Yu Shuangying entered the factory. In 1989, Lu Jun, who later became Liu Liguo’s second brother-in-law, was assigned to work in an aluminum factory. Lu Jun, who graduated from Northeastern University, worked as the secretary of the Youth League Committee of the factory, the secretary of the Party branch of the electrolytic workshop, and the vice chairman of the factory’s trade union. He has a good reputation among the old workers. "He is enthusiastic and serious, has a good popularity, and has hosted weddings for many young people."

　　When Liu Liguo entered the factory in 1997, the scenery of Pingyin Aluminum Factory was no longer there. According to a master’s thesis entitled "Research on the Development Strategy of Pingyin Aluminum Factory" published by Shandong University, from 1997 to 2000, although the aluminum factory contracted and concentrated on aluminum management, the debt ratio rose to 93%.

　　Liu Liguo was assigned as a technician in the aluminum profile workshop, with a salary of several hundred yuan in January. Here, he experienced the joy of getting married and the pain of losing his father. He left the impression on his colleagues that his mind was flexible and he solved many technical problems.

　　After 2000, Pingyin Aluminum Factory went from bad to worse, and the staff turnover was serious. Liu Liguo is also thinking about the way out. In the impression of Third Sister, my younger brother has a high spirit and has his own ideas about life. He is the youngest of the brothers and sisters, but he is also the most considered by others. "He wants his brothers and sisters to live a good life."

　　At first, he opened a small supermarket next to the aluminum factory. When the young couple go to work, the supermarket is looked after by their mother. The supermarket has been open for two years and it doesn’t make money.

　　The benefits of the aluminum factory are still declining, and wages cannot be paid. In May and June 2003, Liu Liguo resigned. Borrowing money from relatives and friends, he started Pingyin Changshun Oil Processing Factory.

　　The right path is difficult to travel.

　　Today, there is a small courtyard with a yellow wall on Wanfang Road, where the family courtyard of the aluminum factory is located. The dark red iron gate is rusty, with illegible rental advertisements on it, and the small yard is a row of factories with doors and windows open. The yard like this small workshop is where Liu Liguo started.

　　In 2003, Liu Liguo built a humble factory in a rented small courtyard, hired three or four people and started an oil business. The yard is only thirty or forty meters away from the aluminum factory, and his brothers-in-law came to help after work from the aluminum factory. My brother Liu Lihai was diagnosed with femoral head necrosis this year, and he often took his brother everywhere to seek medical treatment.

　　In the impression of Lao Li, a former colleague of the aluminum factory, at first, Liu Liguo was doing good oil. "At that time, it was to process lard, that is, to remove the color and smell of lard, and then sell it, which is for human consumption." Later, Liu Liguo said in an interview with China Newsweek at the detention center. Lao Li said that Liu Liguo also used raw materials for killing chickens in chicken farms and made chicken oil.

　　In the eyes of his family, when Liu Liguo started his business, it was very bitter. Many things were out of reach, and he tried many times and failed. Around 2004, he also purchased cottonseed oil and palm oil and processed them into feed oil to sell. The oil color is like soy sauce, but it can only be processed for two or three tons a day. In the first two years of going to sea, Liu Liguo lost money because of his inexperience. He borrowed money from relatives and friends one after another, and once owed nearly 2 million yuan. In 2004, Sanjie also helped him borrow money.

　　"No matter how much you lose, you can only go forward." Liu Liguo later said in an interview with China Newsweek. In the third sister’s view, he is a man who can carry on and doesn’t complain to others easily. Sometimes it is very fragile, and when it comes to the pain of starting a business, it will also shed tears.

　　In 2005, it was a turning point for Liu Liguo. At that time, the biodiesel industry in China was still in its infancy, and there was no unified national standard. Liu Liguo, who has a flexible mind, is optimistic about the prospect of biodiesel. This year, he renamed the factory Jinan Zhongxing Fatty Acid Methyl Ester (Fatty Acid Methyl Ester) Factory, and prepared to put into production biodiesel.

　　In western developed countries, the waste oil from fried food, animal waste oil and restaurant gutter oil is generally regarded as a resource, which can be recycled into biodiesel and animal feed oil. In China, this road is also regarded as a formal outlet for waste oil.

　　According to Jiefang Daily, in 2005, the raw material of 1 ton of gutter oil in China was still 800 yuan, and by 2006, it had risen to 3,000 yuan/ton. The economic benefits of biodiesel are also considerable. The direct cost of producing 1 ton of biodiesel is about 3,500 yuan, and the market price at that time was about 5,000 yuan per ton.

　　According to China News Weekly, Liu Liguo first spent 100,000 yuan to buy the patented technology of "Pilot Test of Lipid Vegetable Oil Fuel" from the University of Science and Technology of China. After purchasing equipment and technology, the effect was not satisfactory. Liu Liguo sought advice from Ning Shoujian, an expert member of the National Biodiesel Industry Cooperation Group, and finally formed his own technology through joint cooperation and repeated experiments with a research institute in Zhengzhou.

　　Liu Liguo mainly bought waste oil from Beijing as raw material, and the processing technology was only two steps. At that time, there was no standard for biodiesel in China, as long as customers agreed. "It was at this time that I had a deeper understanding of waste oil." Liu Liguo said.

　　At that time, diesel was in short supply, and many gas stations added biodiesel to diesel. Liu Liguo’s business grew day by day, with a monthly net profit of 200,000 to 300,000 yuan at the highest. By 2007, he had almost paid off his debts. During this period, my brother Liu Lihai was on sick leave from the aluminum factory. In the first half of 2006, he also came to the factory to help.

　　The good times didn’t last long. With the decline of diesel price, the market demand for biodiesel decreased. "There was no market later, and PetroChina and Sinopec didn’t want it. Who else could they sell it to?" In his confession, he said that biodiesel was produced for eight or nine months, and the products were mainly sold to the petrochemical company in Tai ‘an. Later, due to quality problems, the company did not want the goods.

　　Liu Liguo’s experience reflects the embarrassment of biodiesel industry. China consumes 90 million tons of diesel oil every year, so biodiesel has great room for development in theory. However, the reality is that many biodiesel enterprises have no suitable development path. The supply of raw materials is one of the constraints, while Sinopec and PetroChina monopolize the diesel supply market, making it difficult for private enterprises to enter the state-owned sales channels, which is also one of the difficulties.

　　After biodiesel was frustrated, in 2007, Liu Liguo transformed again and went further and further on the road of waste oil.

　　Waste oil "base"

　　In 2003, although Liu Liguo was involved in the processing of animal waste oil, he didn’t know much about the waste oil business at this time. Pingyin country has a tradition of running oil mills, but Liu’s family has never set foot in it before. In the eyes of his family, Liu Liguo’s involvement in oils and fats was mainly influenced by Zhu Chuanfeng’s brothers in Guoliugou village.

　　At that time, in Guoliugou Village, a few kilometers southeast of Confucius Village, Zhujia’s oil refining business had been going on for three years. According to insiders, the gutter oil business in Pingyin County was the earliest in Zhujia, and other places followed suit. In the second half of 2011, shortly after Liu Liguo was arrested, the refinery of Zhujia brothers was taken down by Jinan police. In public media reports, the Zhujia brothers’ gutter oil case is called the largest gutter oil case in Shandong Province.

　　Zhu Chuanfeng was born in poverty, his father was a factory salesman, his mother was a farmer, and his four brothers were born to kill pigs. Later, they turned to a flour mill and a grain and oil wholesale store. In 1999, Zhu Chuanfeng brought equipment from the south and began to build an oil plant.

　　Police in Jinan said that at that time, Zhujiajian had built the first production line to produce waste oil from hogwash fat. Jinan police later claimed that Zhujia bought kitchen waste oil from Liaocheng and Tai ‘an in Shandong, Beijing, Sichuan, Inner Mongolia and other places, produced defatted oil and sold it to Henan, Shandong, Anhui, Liaoning and other places.

　　On March 3, 2009, after several years of operation, Zhu’s brother and brother in Guoliugou Village registered and established Jinan Fada Oil Industry Co., Ltd., whose registered business scope is biodiesel processing and sales.

　　The Zhujiajian brothers’ industry is getting bigger and bigger. A villager described its prosperity: the big trailer transporting waste oil raw materials from other places is 20 to 30 meters long, full of diesel barrels, and can have at most five or six cars a day. It comes down from the nearby Xiaozhi Expressway intersection, travels 10 kilometers northbound along National Highway 105, 3 kilometers eastbound from the north of Dongtiangong Village, passes through Wang Xiaotun and Fanpizhuang, and then travels 1 kilometer southbound, and goes straight to Zhujia Factory at the east end of Guoliugou Village.

　　Tankers who come from other places to pull oil usually come at night or Saturday and Sunday. If the day arrives, stop at the nearby Kongcun gas station and wait until it gets dark. In the oil truck, the villagers saw cars in Nanjing, Jiangsu, Jining, Shandong and other places, while an edible oil factory in Tai ‘an came in a few days.

　　The rise of the Zhujiajian family makes people jealous. Rural madness: Zhujia can earn 200,000 to 300,000 yuan a day.

　　Waste cooking oil is made into biodiesel, feed oil and other legal ways, and its profit margin is far less than that of illegal "edible oil". The fundamental reason why gutter oil is on the table is the existence of this profiteering space, and this profiteering method has not been punished for a long time.

　　The raw material oil of gutter oil, known as "crude oil" in the industry, is generally refined from the meal waste pulled out from the restaurant trench, and some of it is refined from the discarded oil of fried food and animal fat. The site of refining "crude oil" (especially the refining of meal waste) is generally extremely dirty, which is scattered by some individual practitioners in the suburbs of various cities. The Zhujia brothers, Liu Liguo and other Pingyin waste oil plants are engaged in the acquisition of "crude oil" and the processing of "red oil".

　　The whole chain of cooking oil on the table is full of illegal interests. Taking the processing of "red oil" as an example, according to Liu Liguo’s later statement, in 2011, the "crude oil" acquired was more than 5,000-6,000 yuan per ton. The main product of his gutter oil factory is refined oil, which is called "red oil" by the industry, and the price is around 8300 yuan. Liu Liguo conservatively said that the production loss per ton of "red oil" is about 800 yuan, and the production cost is about 600 yuan. If you process 1 ton of "crude oil", you will probably earn five or six hundred yuan.

　　Zhujiajian oil plant is not without objection. The villagers said that when the southeast wind blows, most of the villages stink. Because of the strong taste in the village, young people can’t get married, so rich people move to the city to live. The Zhujiajian brothers are overbearing, and the people in the village have great opinions and have no place to mention them.

　　Why don’t environmental protection departments and other government departments check? The villagers’ answer is: every year, people from the government come to check, but the Zhujiajian family can last for half a year with some money. "After a long time, law enforcement officers and Zhujia will mature."

　　In this environment, the Zhujiajian made the industry bigger and bigger, which also attracted the envy of some villagers with thin funds and followed suit. Liu Liguo was of course the most successful imitator, and later became the most powerful competitor of the Zhujiajian brothers in the local area.

　　In addition to Liu Liguo, in 2009, in Dong ‘e Town, west of Confucius Village, a waste oil processing plant has been in operation for a long time in the old workshop of the old paper mill. Here, it is very quiet by the 220 national highway in the west, the short hillside in the east and far from the village. In Jianggou Village, the town, a ginger boss who engaged in sweet potato processing quietly switched to waste oil processing, but it was left unattended for several years. A villager in nearby North Zhang Cun later told Caixin that he thought his superiors allowed him to do so.

　　By January, 2011, Wang Zigang, Yu Shubin, Song Qinghua and others from Kongcun had established Jinan Taixin Oil Industry Co., Ltd. in partnership on the south hillside of Jingou Village, west of Kongcun Town. At 3 kilometers south of Confucius Village and south of Dongtiangong Village, Zhao Jingyu, Qu Hou and others from Confucius Village also set up Jinan Zhengcheng Feed Co., Ltd. in partnership.

　　According to Liu Liguo’s confession, there are at least five waste oil enterprises in Pingyin County alone.

　　Linyi is another gathering place of waste oil enterprises in Shandong Province, and Liu Liguo later reported four enterprises here. They also lack corresponding supervision and exist openly for many years.

　　"Advanced" gutter oil

　　For several years, Chen Junshi, an academician of China Academy of Engineering and a researcher at the Institute of Nutrition and Food Safety of China CDC, repeatedly told the media that the problem of cooking oil in China is not serious, because the technology of cooking oil with cooking oil is complicated, which is difficult for ordinary people to master, and the refining cost is expensive, which is not worth the loss.

　　However, in a public occasion a few months ago, Chen Junshi admitted to many media reporters including Caixin that he had underestimated the present situation of cooking oil on the table. What’s more, what Chen Junshi has learned shows that many enterprises involved in gutter oil crimes not only have mastered the refining technology, but also have a high level. Many food safety experts believe that there must be professional oil experts involved in the production of waste oil.

　　If the prosecution is admitted by the court, Liu Liguo is engaged in the processing of waste oil, which is the most important part of this "advanced" waste oil business.

　　Around 2007, Liu Liguo started his own transformation of waste oil business in the small yard next to Pingyin Aluminum Factory. For his business after 2007, Ningbo police and prosecutors directly stated that he was producing waste oil for consumption, but he denied it in court and retorted that he was only producing feed oil beyond the business scope.

　　Processing waste cooking oil into feed oil for feed production is another legal way to utilize waste cooking oil. However, the production of feed-grade mixed oil must obtain the permission of the provincial agricultural department, and Liu Liguo’s company has never obtained the permission.

　　In the domestic feed oil market, manufacturers without production licenses account for a large proportion, and many enterprises’ feed oil eventually flows, and there are also regulatory blind spots. It is unknown whether there are enterprises that import waste oil products into the edible oil market in the name of feed oil.

　　On March 9, 2009, Liu Liguo rented a 1,300-square-meter workshop in Jixi Industrial Park in Pingyin County with a registered capital of 500,000 yuan, and established Jinan Bohui Biotechnology Co., Ltd. (hereinafter referred to as Bohui Company). The company claims that it can produce 10,000 tons of biological wax and 20,000 tons of refined feed oil annually.

　　In May 2010, Liu Liguo registered and established Jinan wesen Energy Co., Ltd. (hereinafter referred to as Green Company). According to the industrial and commercial archives, the company has a registered capital of 1 million yuan, and its general business projects are the production and sales of biodiesel, oleic acid, stearic acid and fatty acids. His family told Caixin reporter that the actual total investment of Green Company was nearly 10 million yuan, and Liu Liguo borrowed nearly 2 million yuan from relatives and friends, and borrowed nearly 2 million yuan.

　　According to the oil processing experts told Caixin reporter, in fact, the use of "crude oil" to produce feed oil and biodiesel is mainly in different directions, and some technical processes in the early stage are not very different. Lawyer Wang Silu also believes that Green’s biodiesel equipment can be used to produce feed oil after simple transformation except for individual process equipment. After the feed oil reaches a certain acid value, it is easy to be transported into the edible oil market.

　　Huang Changshui, a buyer of "crude oil" in Ningbo, is one of the raw material suppliers of Liu Liguo’s enterprises. After his arrest, Huang Changshui said that he met Li Shujun (who was in charge of purchasing raw materials in Liu Liguo’s enterprise) in the first half of 2009. At that time, Li Shujun measured his oil with an instrument and thought that the acid price was high, so he didn’t buy it. Huang Changshui judged that Li Shujun had a high demand for oil. Unlike industrial oil, it was probably used for cooking oil.

　　Acid value is a sign of free fatty acid content in fat. Generally, the smaller the acid value, the better the quality of oil. Generally, the finished fourth-grade soybean oil has an acid value of ≤ 3.0; First-class soybean oil, acid value ≤0.2. The acid value of feed-grade mixed oil is ≤20.

　　After the incident, many core managers of Green Company confessed the production process of the company: basically, more than 30 tons of "crude oil" was delivered to the company every day. After unloading, someone will test the moisture and acidity in the "crude oil". For "crude oil", Green’s requirements are that the water content should not exceed 7% and the acid value should not exceed 15. "Crude oil" is heated and melted and sent to the hydrolysis workshop. There are nine iron cans in the hydrolysis workshop. Workers put clay and activated carbon in the iron cans for adsorption and filtration. After this processing, the color of "crude oil" becomes clear and the smell becomes smaller.

　　After that, "crude oil" will enter the distillation workshop for high-temperature distillation to remove impurities, sour taste and spicy taste again; Finally, the "crude oil" enters the fractionation workshop, and the distilled "crude oil" is physically diverted to form products, of which 30% to 40% are fatty acids and 60% to 70% are red oil.

　　Among Green’s products, fatty acids are by-products. The ex-factory price of "red oil" is more than 8,000 yuan per ton, which is the company’s main profit item. Its acidity requirement is about 2, which has basically reached the standard of four-grade soybean oil.

　　According to the information of the prosecution, after processing, "red oil" has no odor, looks clean, and its color is darker than that of edible oil. Its main indicators are close to that of edible oil, but it has no fragrance, but it is a little spicy.

　　Li Shujun confessed that when customers have requirements for oil products to be spicy, he will arrange workers to taste the spicy degree of oil. Li Shujun also tasted it once and retched for several days. If the oil has a spicy taste, it should be distilled at high temperature to deodorize it. Generally, the temperature of distillation is controlled at about 270 degrees. If the oil is a little spicy, the temperature will be raised to 290 degrees. But this method can not completely remove the spicy taste, but can only reduce it.

　　Ordinary workers are unaware of the company’s production situation. Yang Honglei, an employee, confessed that during the processing, workers were not allowed to bring outsiders into the factory, nor were they allowed to cross posts, and they were not allowed to ask questions at ordinary times. In the refined oil workshop, the east gate is usually locked, and the west gate is closed, so workers have to close the door behind them when they enter and leave.

　　In fact, Green Company pollutes the surrounding environment greatly. In the impression of Feng Sister-in-law, a villager on the nearby Diaoshanpo, on the afternoon of April 22, 2010, there was a smoky smell. "It was a smell of dead cats and rotten dogs, which smoked people except retching, and then they had a headache." Since then, the roses planted near the company will die for no reason, the fruits on the fruit trees will turn black and fall off, and rabbits and chickens will die of respiratory infection. The victims petitioned several times, but to no avail.

　　Before Liu Liguo’s company was raided by the police, all procedures were legal. In October 2010, Shandong Academy of Sciences issued an environmental impact report, saying that the project construction is feasible from the perspective of environmental impact. In August 2010, the feasibility study report of the project made by Jinan Engineering Consulting Institute stated that the project recycled waste oil to produce biodiesel, which protected the urban and rural environment and effectively prevented waste oil from flowing into the dining table.

　　"The absence of government supervision is an important reason for the proliferation of manufacturing and selling’ gutter oil’." Liu Liguo’s defense lawyer, Wang Silu, once said in court that the long-term existence of gutter oil production and sales is the long-term default of the government based on the consideration of promoting regional economy; This phenomenon is tantamount to sending a signal to the local people in Pingyin County, making them generally believe that it is not illegal to manufacture and sell gutter oil.

　　Ding Shihui, deputy head of the Public Security Corps of Zhejiang Provincial Public Security Bureau, who was in charge of investigating the case of Green Company, also believed that the biggest difficulty in dealing with food safety problems lies in local protection. In an interview with Xinmin Weekly, he said: "For the sake of taxation and political achievements, (relevant departments) turned a deaf ear to the problems existing in the jurisdiction and even reported by the people many times, and even formed a community of interests with illegal manufacturers."

　　Inter-provincial chain

　　Another thing that worries food safety experts has been verified in the largest gutter oil case in China: in the process of manufacturing and selling gutter oil, one enterprise is often only responsible for one section, and its raw materials and finished products are often transferred and sold across regions or even provinces, which is very difficult to investigate.

　　A complete process chain of illegal waste cooking oil generally consists of digging and collecting waste cooking oil, crude refining "crude oil", refining "red oil" and adding edible oil. "Red oil" has many names in the market, and illegally entering the edible market is called "rice bran oil". Generally speaking, in the black chain of gutter oil, "rice bran oil" can be sold as "refined oil" after blending with edible oil.

　　The sale of Green Company’s "Red Oil" is a "trade secret" and Liu Liguo is personally responsible for it. According to the prosecution’s materials, if there is "goods" to be delivered, Liu Liguo will contact the driver at noon or afternoon the day before and give them the telephone number of the consignee. Not only does the source of "crude oil" come from all over the country, but Liu Liguo’s finished product "red oil" is also sold in other provinces.

　　In 2009, Liu Liguo’s customer network has basically taken shape. This year, he reconnected with Cheng Jiangping, who is an oil business intermediary. In February of that year, through his introduction, I met Yuan Yi, who runs a grand grain and oil firm in Qingfeng grain and oil market in Henan.

　　Yuan Yi started cooking oil in 2008. According to Liu Liguo’s confession, in June and July of 2009, after Bohui Company was put into production, Yuan Yilu continued to import oil from Liu Liguo. Her requirement for "red oil" was that the acid value should not exceed 2 and the taste should not be spicy. Yuan Yi has to pay the introducer Cheng Jiangping and 1000 yuan a commission for each car fuel.

　　Yuan took a handful of oil from Liu Liguo and called it "rice bran oil". In her Qingfeng market, many people are selling "rice bran oil". She later confessed that in business, others are also doing "rice bran oil" business, and this piece is also profitable, and it is also a variety in her entire product structure, and customers have needs; Without such low-end products, it will have an impact on the sales of other high-end products.

　　Ningbo police later accused Yuan Yiming of knowing that Liu Liguo’s kitchen waste oil was processed into refined oil, but he still bought it in large quantities, sold it to Liu Hanju in Xinxiang, Henan Province and Qiao Xinbao’s grain and oil company in Sanmenxia at a higher price, or sold it to the canteen and night stalls on the construction site through canned retail, causing the kitchen waste oil to flow back to the dining table, with sales reaching 3 million yuan.

　　In June 2009, Liu Liguo learned from the delivery driver that a batch of oil that Yuan Yi wanted from Bohui Company was sent to Henan Wellcome Grease Co., Ltd. (hereinafter referred to as Wellcome Company). This is a company engaged in oil, edible oil and other businesses. Its chairman Bu Qingfeng also runs Henan Qinglong Trading Co., Ltd.. In August and September of that year, Su Feng, Ma Guofu and Cui Rufeng from Henan province and Liu Zhanliang from Hebei province first pulled oil from Bohui Company and resold it to Wellcome Company.

　　In October 2009, Liu Liguo found the information of Wellcome Company and Chen Baogang, the general manager of Qinglong Company, and went to Zhengzhou to find Chen Baogang with a bottle of "red oil" samples. In the absence of Chen Baogang, Liu Liguo left sample oil and business cards in the office.

　　Since then, Chen Baogang introduced Liu Liguo to Wellcome Company. Since the second half of 2009, Wellcome has successively imported more than 7,000 tons of oil from Liu Liguo, becoming its biggest customer in one fell swoop. In Chen Baogang’s impression, Liu Liguo wears glasses, is quite tall and has a flexible brain. He said that he is doing many bioenergy projects, such as developing biodiesel.

　　Ningbo police later accused Wellcome of blending the inferior refined oil purchased from Liu Liguo into normal soybean oil and selling it to food enterprises such as Henan Longxiang Food Co., Ltd., with a total sales volume of more than 160 tons and a sales volume of more than 1.5 million yuan; It was sold to more than 50 enterprises such as Henan Muhe Feed Co., Ltd. for feed production and drug processing, with a total sales of more than 30,000 tons and sales of 300 million yuan; It accused Qinglong Company of doing the same thing and selling it to Jiaozuo Health Yuan Company for the production of drugs, with sales of nearly 50 million yuan.

　　In 2009, Liu Liguo also expanded the local business in Pingyin. In the "feed oil" rivers and lakes, Pingyin people Yu Haibo and Xing Hongsheng did not set foot in it at first.

　　In 2006, Yu Haibo registered Jinan Qianmen Business Center, bought four-grade soybean oil from all places at low prices and sold it to Shandong Qifa Pharmaceutical Co., Ltd. to earn the difference. In 2008, he got a bottle of sample gutter oil from Chuanbo Zhu, Guoliugou Village, and went to Qifa Company for inspection. The inspectors of the pharmaceutical factory said that the sample was qualified. Yu Haibo decided to get oil from Zhujiajian. By October 2009, the merchant found Liu Liguo and began to import oil from Bohui Company, and transported about 3,500 tons before and after.

　　In the second half of 2010, through Cheng Jiangping’s introduction, Liu Liguo also met Li Guangsheng, a native of Xi ‘an. Li Guangsheng usually rents a tanker from Linyi to transport oil.

　　In the later court, Liu Liguo and others were accused of six criminal facts:

　　Knowing that the other party is engaged in edible oil business, or knowing that the other party will blend the non-edible oil purchased from it with normal soybean oil, and then sell it in the name of normal soybean oil, the non-edible oil processed from kitchen waste oil is sold to: Liaocheng Changquan Grain and Oil Industrial Company of Shandong Province operated by Yang Jiquan, with a sales volume of 5.69 million yuan; Sales to Yuan Yi or Yibao Grain and Oil Business Department of Weibin District, Xinxiang City, Henan Province and Sanmenxia Xintai Grain and Oil Co., Ltd. operated by Liu Hanju and Qiao Xinbao respectively with Yuan Yi and Cheng Jiangping as intermediaries, with sales reaching 3.08 million yuan; Sales to Wellcome Company and Qinglong Company, with sales reaching 66.18 million yuan; Sales to Jinan Qianmen Business Center, with sales of 16.83 million yuan; Sales to Liu Zhanliang’s Shunfa Grain and Oil Distribution Office in Xingtai Development Zone, Hebei Province, with sales reaching 7.04 million yuan; It was sold to Shaanxi Gufeng Grain and Oil Industry and Trade Company in Li Guangsheng, with a sales volume of 1.32 million yuan.

　　Hit hard

　　At 4: 00 am on July 4, 2011, drivers Liu Fanjin and Shi Baoyu drove to deliver the goods as usual. They unloaded oil in a factory without a factory name in the suburb of Sanmenxia. This is a deal under the surveillance of the police, and it is also the last business done by Green Company.

　　On the afternoon of July 4, Mrs. Feng, a resident, mowed grass in the field and saw many people coming near her home. Some people in police uniforms, some with cameras, rushed to Green Company from the cornfield above the orchard …

　　Liu Liguo was taken away at the gate of Bohui Company. According to Xinmin Weekly, he hurried downstairs with a phone in one hand and a car key in the other, and was held down just before he walked to the Mitsubishi SUV. Afterwards, he learned that he knew that some policemen had rushed into Green’s company and was looking for someone to inquire about the origin of these policemen.

　　On June 6, 2011, before January, Green Company completed the equipment transformation, and the production capacity increased from 30 tons of refined oil per day before 2011 to 60 tons per day.

　　His customer base was still expanding. Hebei people Sun Weidong and Sun Huping are engaged in edible oil wholesale in Liaocheng, Shandong Province. Since 2010, they have bought 100 tons of oil five times. Guo Zhiqin, Fushun, Liaoning Province, began to send cars to transport oil in May 2011, and transported about 200 tons. Guo case was included in the top ten gutter oil cases announced by the Ministry of Public Security in 2011.

　　At this time, in Guoliugou village, the Zhujiajian brothers built a new factory, and the two factories can produce 100 tons of oil every day. In the south of Jingou Village, Taixin Company in Wang Zigang can produce about 30 tons of oil every day; Zhengcheng Feed Co., Ltd. opened by Zhao Jingyu produces about 30 tons of oil every day.

　　When the business of ditch oil plants in Pingyin is booming, the end point is approaching. On March 30, 2011, when Green Company had not started construction, Huang Changshui, who bought "crude oil" in Ningbo, was questioned by Ninghai police on suspicion of producing and selling food that did not meet the hygiene standards. The eyes of the police were drawn to Pingyin. A week ago, the salesman sent by Li Shujun also bought 185 barrels of "crude oil" from Huang Changshui …

　　Only two weeks after Liu Liguo was arrested, on July 20, 2011, Jinan Public Security Bureau filed a case investigation against the developed company in Guoliugou Village. The police later claimed that 16 people, including Zhu Chuanfeng, were arrested, and the first major case of producing and selling waste oil in Shandong Province was detected. At the same time, three enterprises, including Taixin Company and Zhengcheng Company, were destroyed, 38 suspects were arrested and five waste oil production lines were sealed up. The waste oil factory in the old paper mill in Dong ‘e Town was reported as early as November 2010, and was ordered by Dong ‘e Town Government to stop production, so the boss surnamed Jiang escaped.

　　In August, 2012, under the jurisdiction designated by the Supreme People’s Procuratorate and the Supreme People’s Court, it was examined and prosecuted by the Ningbo Procuratorate and tried by the Ningbo Intermediate People’s Court. The relevant defendants were tried in three groups according to the production and sales links.

　　In the trial on August 22nd, seven people, including Liu Liguo, collectively retracted their confessions, and both the prosecution and the defense debated whether the defendant "knowingly and intentionally" and whether the evidence could prove that the products were "toxic and harmful food" and "fake and inferior products".

　　In court, Liu Liguo spoke clearly and logically, which left a deep impression on people. He said that he didn’t know what he bought his oil for, and there was no report that someone had health problems after eating it.

　　Nie Jianhua, deputy director of the Public Prosecution Office of the Supreme People’s Procuratorate, said in an interview with People’s Daily that it was very difficult to punish crimes endangering food safety. First, it is difficult to prove, including the intentional proof of the suspect’s subjective crime, the proof of the amount of crime, and the characteristics of cross-regional joint crime have also increased the difficulty of obtaining evidence; Second, it is difficult to obtain the necessary expert conclusions for prosecuting charges and finalizing the case.

　　By December 12, 2012, the case was heard again in the anxious waiting of Liu’s family. The prosecution changed the criminal facts of Liu Liguo involving Li Guangsheng. The lawyer will plead not guilty again.

　　Four men were arrested in Liujia, Pingyin, which caused the family to collapse half the sky. The postcards written by Liu Liguo from the detention center made my sisters cry. He was worried about his old mother, but he didn’t forget to explain: it started with him, and he was responsible for the monthly living expenses of his men, so as to feed them …

　　At this time, the families of other trench oil cases in Pingyin County are also suffering. In Pingyin County People’s Hospital, a waste oil factory owner is still lying in a hospital bed. The villagers said that in the Jinan police action in 2011, he could not accept the reality and committed suicide, injuring his cervical vertebra, which was in danger of paralysis. He told Caixin reporter, "No way, I caught up."

　　In Guoliugou village, Zhu Chuanfeng’s 70-year-old mother sometimes rides a tricycle through the factory. Three of her four sons were taken away, and she often wiped her tears. In the case of Zhujia, the judicial progress has not been made public.

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