[Gao Feng]: Dear friends from the press,
Good afternoon. Welcome to the regular press conference of MOFCOM. First, I have one piece of information to release today.
It is about the economic and trade cooperation of the Belt and Road Initiative in the first three quarters.
In terms of foreign trade, the total import and export value between China and the countries along the Belt and Road routes reached 6.08 trillion yuan, with an increase of 13.2% year on year, 3.3 percentage points higher than the growth rate of China’s overall foreign trade over the same period of time. Among these, the export was 3.38 trillion yuan, with an increase of 7.7% year on year, and the import was 2.7 trillion yuan, with an increase of 20.9% year on year.
In terms of investment cooperation, the homeland investors’ non-financial FDI in countries along the Belt and Road routes amounted to US$10.78 billion, up 12.3% year on year. The turnover of the overseas contracted projects amounted to US$58.49 billion, up 18.4% year on year.
In terms of promoting facilitation, we jointly built the free trade zones with the willing countries, concluded China-Mauritius FTA negotiations, promoted RCEP negotiations, China-Singapore FTA Upgrading negotiations, and China-Moldova FTA negotiations. The document on the outcomes of the 4th round of negotiation of tariff concessions of Asia-Pacific Trade Agreement officially entered into force, and 6 members will cut tariffs on more than 10,000 tariff line, items with the average tariffs reduction rate reaching 33%.
In terms of project construction, Ababa-Djibouti railway, Port of Piraeus, and Port-Nairobi railway run smoothly. Hinkley Point nuclear power station, China-Laos railway and Hungary-Serbia railway are being built steadily. Up to now, Chinese enterprises have built 82 trade and economic cooperation zones in countries along the Belt and Road routes, and the taxes paid to the host countries reached US$2.01 billion, creating 244,000 jobs in the local regions.
The above is the information I want to inform you of. Next, I will answer the questions from the press. Please.
CBN: On October 18th, China made the request to the WTO to set up panel in the dispute with the US regarding its 232 measures against steel and aluminum products. How is the progress?
Gao Feng: we noted that on October 18th, China and other six WTO members made the panel request to the DSB regarding US 232 measures against steel and aluminum. The DSB has put the requests of these members into the agenda of the regular meeting on October 29th. According to WTO procedures, in case the panel request is impeded by the respondent, the complainant may request again and the panel will be automatically set up.
China will continue to work with other Members to safeguard the multilateral trading system and the sanctity and efficacy of the WTO. Thank you.
Shanghai Securities News: VOA China reported that the US Treasury Secretary indicated openness to revising the criteria for designating a currency manipulator. In its report last week US Treasury did not list China as a currency manipulator based on the current high threshold for designation. But after the revision, it would be more likely for the Trump administration to designate China as a currency manipulator. What is your response?
Gao Feng: We have taken note of the report. Whether a country is manipulating its currency and havin a reasonable exchange rate should be subject to the authoritative assessment of the IMF, which has drawn the conclusion that the RMB exchange rate corresponds to the economic fundamentals of China. It is agreed by the international community that China has not manipulated its currency. We expect certain country to respect market laws and facts, not to politicize exchange rate issue, and not to override international rules with its own standard.
As a responsible major nation, China reaffirmed many times that we will not have competitive devaluation or use RMB exchange rate as a tool to tackle the trade war and other external disruptions. Going forward, China will firmly deepen market-oriented reform of the exchange rate, improve the managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies, and keep a stable RMB exchange rate within in a reasonable range.
Bloomberg: I have four questions. The first two are about the third country market exploration between China and Japan. What are the specific opportunities? The second question is that Japan stated repeatedly that an agreement to explore third market won’t be reached without meeting international standards. PM Shinzo Abe tabled four conditions: fair, transparent, and economically and financially sustainable. Is China able to meet the requirement? The third question is that the chief economist at the US Treasury said President Xi and President Trump will meet at the G20 summit. Could you confirm that? Does China have any pre-set conditions for this meeting to take place? The last question is about the CIIE in Shanghai. Will there be concrete projects agreements and announcements of major reform or trade and economic policies?
Gao Feng: The first two questions are about China-Japan economic cooperation. The strong complementarity of the two economies laid a solid foundation for our cooperation. With the joint efforts of both sides, the third market cooperation has become a new driver for commercial ties in the new situation and opens new paths for results-oriented cooperation.
The governments and businesses of China and Japan have shown strong interest in third market cooperation. China has cost advantage in equipment manufacturing and human resources, fast business decision making and diverse financing channels, while Japan has strengths in technology, branding, marketing and engineering management. The two sides could work together in transport, logistics, energy, environment, regional development and industrial upgrading in third markets.
China stands ready to work with Japan to leverage their respective advantages in market, funding, technologies and management, fully respect the will of the country wher the project is located, conduct high-level, quality, green and sustainable cooperation and jointly develop mutually-beneficial and all-win third-party market cooperation.
As for your third question, my colleague, a spokesperson from the Ministry of Foreign Affairs, has already responded earlier.
As for the CIIE, at present, preparation for the first CIIE is making steady and orderly progress. The CIIE is an important platform for companies around the world to enter the Chinese market and for exchanges between economies, industries and organizations related to global economy and trade. In addition, the CIIE also provides a key platform for economies to open up to each other and build an open global economy. We hope that all participants would find it a rewarding and satisfactory experience. We hope that relevant countries could fully display their charm, participating companies and purchasers could conclude mutually-beneficial and win-win cooperation agreements and relevant parties could fully discuss global economic development, so as to make the first CIIE a great success.
Economic Daily: There is news saying that, Larry Kudlow, Director of the White House National Economic Council, stated in an interview that the US had given China a detailed list of demands on trade and China had to make a decision. However, China has not made a decision up till now or has decided that it would not take any action. What’s MOFCOM’s response to that?
Gao Feng: After the US started the trade friction, China and the US have hosted four high-level consultations and raised their respective concerns.
I want to stress that the negotiations are mutual, instead of a one-way street addressing concerns for one side. China is always sincere about negotiations. We hope that the US could also show sincerity and negotiate with China in a constructive manner. Thank you.
TASS: Thank you, Mr. Spokesperson. Prime Minister Dmitry Medvedev of Russia will pay an official visit to China. What expectations does China have for this visit? What impact will this visit have on China-Russia cooperation and business partnership?
Gao Feng: In this year, with the strategic leadership and promotion of Chinese and Russian leaders, the business cooperation between the two countries enjoys a sound momentum. In the first three quarters, the bilateral trade reached USD 77.15 billion, with a growth of 25.7%, ranking the first among China’s key trading partners. It is expected that the annual bilateral trade could reach USD 100 billion, a new historical high. At the same time, cooperation in large strategic projects on energy, nuclear power, aeronautical and space technologies and infrastructure has achieved major progress. The two countries are also advancing cooperation in digital economy, Arctic development and other emerging areas. In subnational cooperation, the two countries have taken the opportunities offered by the Year of Sino-Russian Local Cooperation and Exchanges and leveraged the China-Russia Expo, Oriental Economic Forum and other key exhibitions and platforms to enhance alignment and cooperation, with sound effects.
During the first CIIE, Russia will participate in the exhibitions and conferences as a country of honor. We believe that the CIIE will build a new platform for Russia to display its quality and special products and potential of economic cooperation and expand bilateral practical cooperation, while creating new momentum for China-Russia business cooperation. Thank you.
CNS: It is also a question about the CIIE. We have noted that a recent spokesperson for the U.S. Embassy in Beijing said the United States would not send high-ranking officials to the first CIIE. He asked China to provide a level playing field for U.S. goods and services, and carry out some necessary reforms to stop the so-called unfair trade practices that hurt the world economy. What is MOFCOM’s view on this?
Gao Feng: We have taken note of the relevant reports. As far as I know, the United States will not hold a national exhibition during the First China International import Exposition. At the business level, American firms generally have high enthusiasm in participating in the CIIE, and have a strong desire for cooperation.
As far as participation in the exhibition is concerned, nearly 180 American firms have so far participated in the enterprise exhibition, ranking the third amongst all participating countries in terms of the number of participating exhibitors. These enterprises are engaged in high-end manufacturing, intelligent equipment, agricultural products, cultural and sports and so on. A number of Fortune Global 500 companies and industry-leading enterprises or institutions have signed up for the exhibition. In terms of the willingness to cooperate, many American companies hope that during the CIIE, they could build up a communication platform for US businesses and institutions to connect with relevant domestic departments, local governments and enterprises so as to explore the potential and opportunities of cooperation between China and the United States at the subnational level.
In a word, this import Expo will provide a high-level exchange and cooperation platform for enterprises from all over the world, including those from the United States, to share development opportunities and achieve win-win cooperation. Thank you.
CNR: Also on the issue of the CIIE, we have noted that there are only 10 days left in the run-up to the CIIE. First, could you give us a detailed introduction of the current progress of the preparatory work, and what is the work focus in the next 10 days, and what measures has the Ministry of Commerce put in place to push along the preparations? In addition, we would like to know some of the major processes of the Hongqiao International Economic and Trade Forum and the list of the heavy-weight foreign guests.
Gao Feng: At present, the invitation of exhibitors to the first China International import Expo has been successfully completed, and infrastructure upgrade and the renovation of the main venues have also been completed. All the relevant preparatory work is progressing in an order manner. Going forward, we will work mainly around the following areas:
One is the finalization of the exhibition setup. We will go through the specific issues relating to the transport, inspection and quarantine of exhibit items for the National Exhibition and Enterprise Exhibition and to the registration of personnel, and make sure that the setup of the exhibitions will be finalized by the end of October.
Second, completion of the construction of exhibition venues. At present, the renovation of the main forum hall, the parallel forum halls, the national exhibition hall and the area around the outdoor plaza at of the National Convention and Exhibition Center has been basically completed. The inspection and delivery process is currently ongoing. The construction of the media center has been completed and is now in test run.
Third, we will make every effort to ensure sound municipal support. We will optimize our work plans in such areas as transport, accommodation, catering, environmental management and health care, to ensure a strong support with regard to the provision of municipal services.
With regard to the Hongqiao International Economic and Trade Forum you mentioned, the three parallel forums will be held simultaneously on the afternoon of November 5 with the topics of “Trade and Opening”, “Trade and Innovation” and “Trade and Investment” respectively. Three parallel sessions are respectively composed of “Guest Speeches” and “Panel Discussions.” The former will invite political leaders from home and abroad to deliver speeches, and the latter will specially invite guests including leaders from international organizations, entrepreneurs and academics to discuss issues on the topics of the parallel sessions and the most-concerned problems in world economy and trade. The sessions will end with a “Q&A,” inviting the audience to raise questions and make comments.
At the forum, foreign entrepreneurs such as Bill Gates, heads of international organizations such as UNCTAD and UNIDO, as well as renowned scholars at home and abroad will speak at the conference. A detailed list has been posted on the CIIE official website.
We sincerely welcome dignitaries from various countries, as well as people from the business community, academia and think tanks, and the media to the forum. We look forward to working with all parties to make this forum a complete success and jointly build the Hongqiao International Economic and Trade Forum into a public platform for promoting a new round of high-level, mutually- beneficial and open exchanges, and a high-end dialogue platform for the governments, industry and academia across the world to discuss major frontier issues in global economy and trade. Thank you.
Phoenix TV: Data show that from 2013 to 2017, Chinese e-commerce transaction value grew year by year with an average annual growth rate of close to 30%. online retail value increased from 1.85 trillion yuan to 7.18 trillion yuan, up by 30%. China had been the largest online retail market in the world for five years in a row. Will MOFCOM pay more attention to the growing e-commerce trade? What is the outlook of the industry’s future?
Gao Feng: As you said, thanks to the wide use of internet technologies, Chinese e-commerce industry has registered rapid growth in recent years. It has played an important role in innovation and entrepreneurship, economic transformation, and consumption upgrading.
Since the beginning of this year, e-commerce in China has maintained a rather strong momentum. In the first three quarters, the online retail sales nationwide totaled 6.2785 trillion yuan, up by 27% year-on-year. Among them, 4.7938 trillion yuan worth of physical goods were sold online, up by 27.7% year-on-year, which accounted for 17.5% of total consumer goods retail sales and contributed 44.6% to the total sales growth of consumer goods.
The E-commerce Law promulgated last August provides legal guarantees for sustained and sound growth of Chinese e-commerce industry. Going forward, we will work on two things, namely maintaining relatively rapid growth and rules-based development. We will collaborate with relevant ministries to attach equal importance to development and standards, competition and coordination, openness and security. We will make an effort to establish a coordinated administrative regime that fits the features of Chinese e-commerce industry and a market governance system involving multiple parties, provide stronger policy guidance, perfect incentive system for e-commerce, and push for high-quality development of e-commerce industry featuring innovation, integration and sharing. Thank you.
Economic Information Daily: The General Office of the State Council of China pointed out recently that China will put in place a negative list adjustment mechanism reflecting dynamic changes in market access, and a unified national list code system. What progress has been made by MOFCOM?
Gao Feng: The negative list system is an integral part of transforming government functions, optimizing market environment, and building a modern economy in China.
Since 2015, in accordance with the requirements by the Central Committee and the State Council, MOFCOM has worked with the NDRC on pushing relevant work forward. We have published the draft negative list and conducted pilot programs in 15 provinces and cities such as Shanghai, Tianjin and Fujian. In 2018, based on fully inviting opinions from over 60 departments and local governments, we revised and improved the pilot list and formulated a new version of negative list. The latest list has been reported to the Central Committee and the State Council for endorsement. According to our work plan, the list will be published and implemented nationwide after its endorsement. We will set up an information release platform to provide an easy access to the list. The dynamic adjustment mechanism will be phased in in 2019. Thank you.
China Daily: According to the Global Investment Trends Monitor by UNCTAD, the massive tax cut initiated by the US has taken a toll on FDI flow in the world, including the US, in the first half of this year. China, however, surpassed the US as the largest recipient of FDI. What does MOFCOM make of the change in rankings of China and the US in terms of adopting FDI? What measures will MOFCOM take to keep the momentum?
Gao Feng: The Global Investment Trends Monitor released by UNCTAD recently indicates that in the first half of 2018, global FDI flow droped by 41% to the lowest level in a decade. China has become the largest recipient of FDI inflow in the world.
We believe that to maintain stable and consistent foreign investment policies and to keep enhancing investment facilitation is vital to attracting FDI. Over the past 40 years since the inception of reform and opening up, China has stayed committed to the direction of foreign investment policies, stepped up protection of the lawful rights and interests of foreign invested enterprises, and provided better services for investors from around the globe. China has continuously opened up its market, reduced restrictions on market access, and unleashed market potential gradually, hence presenting a host of opportunities of common development for investors.
The report fully demonstrates international investors’ confidence in China’s investment climate and expectations of investment in China. We will continue to carry out measures of attracting FDI, further ease restrictions over market access, maintain a stable and predictable foreign investment environment, and maintain China’s appeal as the most attractive investment destination in the world. Thank you.
21st Century Business Herald: We’ve seen that in the first three quarters of this year, while China maintained a stable paid-in FDI, the number of newly-established foreign invested enterprises registered a growth by above 95%. What do you think of the rapid growth? How will China further attract FDI? Thank you.
Gao Feng: The stable growth in inward FDI and fast growth in new FIEs established in China demonstrate that our reform in commercial and business system has paid off, investment facilitation has been enhanced, and market entities have been incentivized. It also speaks to the confidence of international investors in China’s growth outlook. They have stepped up investment in China with full confidence in the country’s further opening-up agenda.
Going forward, we will speed up legislation process of the Foreign Investment Law, enhance investment liberalization and facilitation, maintain stable, fair, transparent and predictable foreign investment policies, better protect lawful rights and interests of FIEs in China, provide better services for foreign investors, and build up the confidence of international investors. Thank you.
This is the end of today’s conference. Thank you.
