Gao Feng: Dear friends from the press, good afternoon. Welcome to the regular press conference. Since I don’t have announcements to make today, we can proceed directly to Q&A. The floor is open.
China News Service: We have noticed that the US-Mexico-Canada trade agreement includes the “poison pill” article: the countries that have signed a free trade deal with the US would not be able to sign deals with a “non-market country”. Some analysts believe that such an article may be replicated in the trade deals between the US and the EU or the US and Japan to marginalize China. What is MOFCOM’s response to that and how will China respond?
Gao Feng: Regarding the so-called “nonmarket country”, China has stressed many times that there is no such an article of “nonmarket country” in WTO multilateral rules. It only exists in the domestic laws of individual countries. China opposes the practice of placing a country’s domestic law above the international law and forcing one country’s will on others.
As for the relevant parts of the US-Mexico-Canada trade agreement, China believes that a country should attract its trading partners based on market potential and policy environment by following the principles of mutual respect, equal consultation, mutual benefit and win-win results. The aim of FTA is to facilitate trade between members. One should uphold the principle of openness and inclusivity instead of limiting foreign relations of other members or pursuing exclusionism.
We believe that all economies have the autonomy to develop their foreign business relations and will value their commercial relations with China based on their needs for mutually-beneficial and win-win cooperation. Thank you.
CGTN: We have recently seen the speech by a US leader on the China policy. The speech mentioned that much of fast economic growth in China was driven by American investment. However, it also stated that China has also used an arsenal of policies inconsistent with free and fair trade for economic invasion against the US, including tariffs, currency manipulation, forced technology transfer and intellectual property theft. What is China’s response to that?
Gao Feng: The comments of the US leader ignore the facts of China-US business cooperation and are merely misleading the public. According to Chinese statistics, since 1987 when China started collecting statistics on foreign investment, China’s cumulative paid-in foreign investment reached USD 2002.6 billion, including USD 81.36 billion from the US, or 4.06% of the total. We do not deny the contribution of US investment to Chinese economic growth. However, China’s development is ultimately the result of China’s constant reform and opening up and the hard work of the Chinese people.
Since the reform and opening up, China has always been committed to the mutually-beneficial and win-win principles in its foreign business cooperation and constantly opened its market to the world. The Chinese economy is actively integrating into the global economic system. We have never pursued the so-called economic invasion, and will never do so. On the contrary, we hope to share opportunities and pursue common development with all commercial partners to jointly build an open world economy and promote global economic growth. According to IMF statistics, since 2013, China’s average contribution rate to world economic growth has exceeded 30%. According to WTO statistics, from 2001 to 2017, the share of China’s imported goods in global total increased from 3.8% to 10.2% and that of imported services from 2.7% to 9.1%. China’s contribution to global economic and trade growth is clear to all.
As for the so-called policy tools inconsistent with free and fair trade mentioned by the US, China’s views are already very clear. We have always abided by the basic principles and rules of the WTO and have made our contribution to global trade liberalization and facilitation. We hope that the US would not find excuses for unilateralism and protectionism and should take practical measures constructively to genuinely safeguard the sound development of China-US business cooperation and the momentum of global economic growth. Thank you.
ITAR-TASS: China-US trade frictions have had adverse impact on countries around the world. What measures do China and the US need to take to restore bilateral commercial relations to the previous level? What solutions does China have? Will economic and trade frictions turn into political conflicts?
Gao Feng: Like you said, the trade frictions between China and the US, the world’s two biggest economies, have brought negative impact on not only the two countries, but also the entire world. The best way out is for both sides to fully show goodwill and mutual respect and have conversations and consultations based on equality and credibility. We believe that as long as the two sides are sincere about active cooperation and manage their differences, ways can be found to keep bilateral trade and economic relations on the track of cooperation. Thank you.
Xinhua News Agency: We’ve noted the remarks by US leaders of late that in order to have China open wider, they might take a tougher stance these days. Unless the two sides reach a so-called just and reciprocal agreement, they might impose more tariffs, which could more than double. They also threatened levies on the remaining US$ 267 billion worth of Chinese goods and believe that to be a show of strength of the US already havin an impact on the Chinese market. What is your reaction to that?
Gao Feng: China has emphasized many times that US bullyism and extreme pressuring aren’t working with China. The US may be used to using its so-called strength to interfere into others’ economy, but we don’t think that escalating trade tensions can help resolve our differences. Meanwhile, overall, the Chinese economy’s improving and progressing momentum amidst stability hasn’t changed. New dynamics are forming more rapidly towards quality development.
It is hoped that the US will not misjudge the situation and stop unilateralist and trade protectionist practices and return to the track of mutually beneficial and win-win cooperation to address trade and economic differences through dialogue and consultation based on equality, credibility and mutual respect. Thank you.
Global Times English Version: In a speech the other day, a US leader alleged that China has reacted badly to the tough US position, including interfering in US domestic politics and elections by hitting the base of the President and influencing US business leaders by coercion to encourage them to condemn US trade acts. What’s China’s response?
Gao Feng: I believe that the evolution of the trade tension is well known to all. China has all along wanted to maintain the large picture of China-US economic and trade cooperation and doesn’t want a trade war. But the US started and has continuously escalated the trade frictions. In order to defend its own interests and the multilateral trading system and global free trade order, China has to counteract with rational and restrained measures. We are only defending our legitimate interests and have no intention to meddle in US domestic politics.
As for the accusation about China’s trying to influence US business leaders, China welcomes US companies and business leaders. I believe they have their own judgments. To our understanding, many US business leaders who are against the tariff measures on Chinese goods dare not speak out for fear of punishment by the US government. I don’t know whether the US government has made certain threats.
I want to reiterate that China’s original goal of maintaining the healthy development of Sino-US commercial relations hasn’t changed. Nor will its resolve to safeguard its legitimate rights and interests. Thank you.
China Daily: We’ve noted that the US leader also said in the speech that competition doesn’t necessarily mean hostility. The US wishes to establish a constructive relationship with Beijing and doesn’t want a breakup. Though China has been diverging further away from the vision, it can still change path and return to the reform and opening-up spirit of decades ago when the two countries forged diplomatic ties. What’s China’s reaction?
Gao Feng: Recently, US leaders and officials of various levels mentioned China-US competition several times. It is normal for the world’s two largest economies to have a certain degree of competition. That said, both the history since we established diplomatic relations and realties show that China and the US have greater need for cooperation. In the past 40 years since we forged diplomatic ties, despite the ups and downs in bilateral trade and economic ties, China and the US are able to resolve differences through conversations and consultations and keep moving ahead along the line of cooperation and win-win.
In dealing with this round of trade and economic frictions, China has stuck to a constructive approach, wheras the US goes back on its words, lacks credit and takes measures to escalate trade frictions, affecting the normal development of China-US trade and economic cooperation.
This year marks the 40th anniversary of China’s reform and opening up. We’ll keep to the basic state policy of opening up and open-door nation-building to push the Chinese economy towards quality development in an open condition. It is hoped that the US can take genuinely constructive measures to promote higher levels of China-US commercial cooperation. Thank you.
CCTV-4: The just published white paper of Facts and China’s Position on China-US Trade Friction indicates that China would like to restart bilateral trade negotiations with the US on condition of equality and mutual benefit and launch bilateral FTA negotiations at an appropriate time. Have you confirmed with the US and received feedback?
Gao Feng: China is open to the relaunch of BIT talks and timely start of bilateral FTA negotiations. But unfortunately, the US is yet to show goodwill. It is hoped that the US will work with China to explore right ways to advance cooperation and resolve differences in a constructive manner and cooperative spirit to promote the healthy and steady development of bilateral trade and economic relations. Thank you.
Yicai: Recently, the UMC and Korus negotiations both made progress. US-Japan FTA talks are also showing signs of a start. The EU has tabled a WTO reform proposal. Has China studied and analyzed these texts? How will these developments affect China? How will China deal with the emerging changes in the international economy and trading system?
Gao Feng: We’ve noted some new developments in the mechanism-building of bilateral and multilateral trade and economic cooperation.
No matter how changing external environment affects China, the key is to hold fast to our own path and attend our business by continuously advancing supply-side structural reform, optimizing regional, industrial and product structures and push the Chinese economy towards quality development.
At the same time, China has been and will always be an active player and key contributor of the international trading system. China will remain committed to trade liberalization and facilitation and continue to champion the multilateral trading system. We’ll work with our trading partners to jointly steer the global trading system towards more fair and reasonable development for global economic growth. Thank you.
CRI: Premier Li Keqiang will soon be visiting the Netherlands. Could you please share some information on China-Netherlands trade and economic ties in recent years?
Gao Feng: In recent years, under the guidance of Chinese and Dutch leaders, China-Netherlands relations are now as good as never before. The two sides reached consensus on expanding and strengthening their comprehensive cooperative partnership that features openness and pragmatism, which lends continuous impetus to the sound and stable development of their bilateral relations.
Now, China-Netherlands bilateral trade and economic cooperation has entered the fast track, unlocking new potential for cooperation. First, bilateral trade maintains high-speed growth. In 2017, China-Netherlands trade in goods amounted to USD78.4 billion, up by 16% compared with the previous year, hitting a record high. In the first eight months of this year, bilateral trade in goods reached USD54.7 billion, up by 13% year on year. Now, Netherlands is China’s second largest trading partner in the EU and China is Netherlands’ second largest trading partner outside the EU. Second, two-way investment grows fast. Bilateral investment cooperation has entered a new stage. For China, the Netherlands is an important source of foreign investment and ODI destination in the EU. By August, 2018, the Netherlands’ paid-in investment in China reached USD19 billion. By the end of 2017, China’s outstanding direct investment in the Netherlands reached USD18.5 billion. The two countries have a broad prospect for cooperation on agriculture, innovation, energy conservation, environmental protection and high technology, among others.
China stands ready to work with the Netherlands to further deepen international cooperation under the Belt and Road initiative. We are ready to make the most of platforms like the China International import Expo to expand bilateral trade, promote two-way investment, strengthen cooperation in third markets and in particular, dig deep into our cooperation potential in hi-tech trade to bring bilateral commercial cooperation onto a new level. Thank you.
Shanghai Securities News: As we know, mart procurement is a new form of trade. Could you share some information about its development? Will there be more pilot marts in the future?
Gao Feng: As approved by the State Council, MOFCOM, together with related departments, has carried out 3 batches of pilot mart procurement projects at eight marts in Zhejiang, Jiangsu, Hebei and other provinces since 2013. We have been exploring and trying out new approaches in terms of administrative procedures, regulation methods and IT application. We have made policy breakthroughs in four aspects, including VAT exemption and simplified and classified customs declaration. We have set up an administrative mechanism which designates the area of a pilot mart, requires the record-filing of suppliers, purchasers and foreign trade businesses and provides a platform for information sharing. We have put in place a commodity recognition system and an IPR protection system that feature information sharing, departmental coordination, risks control and product traceability, basically realizing the administrative goal of source traceability, accountability and risks control. It is proved that pilot mart procurement projects have tapped into market entities’ vitality, expanded market scale, improved the internationalization level, promoted foreign trade growth and made satisfactory progress. According to China’s customs statistics, nationwide export through mart procurement trade in 2017 and the first eight months of 2018 grew by 54.2% and 71% year on year, respectively, remarkably higher than China’s overall export growth rate in the same time period.
On September 28, 2018, MOFCOM, together with related departments, implemented the fourth batch of pilot mart procurement projects at six marts in Zhejiang, Fujian, Hunan, Guangdong, Sichuan and other provinces. Going forward, MOFCOM and six other departments will further step up the implementation, develop more replicable practices through institutional, administrative and services innovation as well as coordinated development to promote the innovative development of China’s foreign trade. Thank you.
Economic Information Daily: The 124th session of the Canton Fair will soon be held in Guangzhou. Could you please tell us something about it?
Gao Feng: This year marks the 40th anniversary of China’s reform and opening-up. As an important window for opening-up, during the past 61 years, the Canton fair has contributed to China’s reform and opening-up, its socialist modernization drive and the development of Chinese and foreign businesses and played a positive role in China’s reform and opening-up as well as its economic and social development.
The 124th session of the Canton Fair will be opened on October 15. This year’s session will be innovative as always. It will be more professional, internationalized and market-oriented and go further in IT application. We will support businesses, in particular competitive ones, in exploring a more diversified market. The Fair will cover an area as big as 1.185 million square meters and provide 60,645 exhibition booths. Over 25,000 businesses from home and abroad will participate in the Fair. There are several highlights:
First, the Fair will be more professional. 2,297 businesses will have exhibit their products in the brand names area, up by 3.2% compared with the figure of the last brand name booth review. The structure will be further optimized. This year’s session will be participated by both competitive traditional brands that enjoy stable development and a batch of emerging businesses. We will see better role models in these businesses.
Second, structure of the exhibition area will be further optimized. We have expanded the area for home appliances, kitchenware and tableware, as well as household items. We will set a multifunctional area for onsite activities and further classify products in different areas.
Third, we continue to enhance the Fair’s role as a comprehensive multifunctional platform. With our plan to hold a smart Canton Fair, we will provide six major services, including smart services, pre-exhibition platforms, suppliers-purchasers matchmaking, Canton Fair recognition, brand promotion and smart business travelling. We will improve our all-channel, one-stop, synchronized online and offline services. We will provide exhibitors and purchasers with a smart, all-weather foreign trade-promotion platform before, during and after the Fair.
Fourth, we will hold more forums. This year, we will hold 20 high-quality meetings and forums, such as the Canton Fair International Development Forum in Phase 1 and a press conference to interpret the Report on China’s Foreign Trade (Autumn 2017) in Phase 3. We wish to provide exhibitors and purchasers with more platforms for exchanges. Thank you.
This is the end of today’s press conference. Thank you.
(All information published in this website is authentic in Chinese. English is provided for reference only. )