Gao Feng: Friends from the media, good morning! Welcome to attend the special press conference today. To better provide public service for the enterprises “going out,” the Ministry of Commerce entrusted Chinese Academy of International Trade and Economic Cooperation with the compling of the 2018 edition of Guide for Countries and Regions on outward Investment and Cooperation, and entrusted China Service Outsourcing Center with the compiling of the 2018 edition of China’s Outward Investment Development Report, and also revised Textbook Series of Multinational Operation and Management Talents Training. Today, I am very glad to invite the Deputy Director of the Department of Outward Investment and Economic Cooperation Mr. Han Yong, the Vice President of Chinese Academy of International Trade and Economic Cooperation Mr. Qu Weixi and the Deputy Director of China Service Outsourcing Center Mm. Xing Houyuan to introduce the related situation to you.

Next, let’s welcome Deputy Director Han Yong to publish the three public service products, and introduce the work conducted by Ministry of Commerce on the public service in outward investment and cooperation in recent years, as well as the work consideration next.

Han Yong: Thank you, the host. Ladies, gentlemen and friends from the media, good morning!

Reports of the 19th National Congress of the Communist Party of China pointed out that China should take the construction of the Belt and Road Initiative as the emphasis, attach importance to both bringing in and going out, follow the principle of joint consultation, joint building and sharing, so as to strengthen innovation capability, opening up and cooperation, form a mutually helpful opening up pattern that link the land and the sea, and the west and the east. We should innovate the patterns of outward investment, promote international capacity cooperation, so as to form a network of trade, investment and financing, production and service, and speed up cultivating new advantages of international economic cooperation and competition. This is the fundamental rule of the outward investment work in the new era.

In 2018, we took Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era as the guidance, fully implemented the spirits of the 19th National Congress of the Communist Party of China, firmly implemented the requirements and deployments of the Central Economic Work Conference, adhered to the general work tune of seeking progress in stability, sticked to the new development concepts, sticked to the emphasis of building the Belt and Road Initiative together, sticked to mutual benefit and win-win results, developed commonly, continuously strengthened planning and guidance, optimized supervision services and created favorable environment, therefore, under the even more complicated and changeable international situation, China’s outward investment and cooperation maintained a stable, orderly and healthy development. In 2018, China’s outward direct investment of all industries reached US$ 129.83 billion, up 4.2% year on year. The complete turnover of foreign contractual projects was US$ 169.04 billion, up 0.3% year on year.

In 2019, China's external environment is complex and grave. Chinese enterprises will face rare historical opportunities for going global, some risks and challenges. General Secretary Xi Jinping pointed out that "people with talent are a strategic resource for China as it endeavors to achieve national rejuvenation and stay ahead in international competition." The Ministry of Commerce is committed to training multinational operation and management talents, promoting the steady and sustainable going global of enterprises, and working together with embassies and consulates in foreign countries, relevant research institutions and think tank experts to provide broad, abundant and targeted public service products of outward investment and cooperation for enterprises to go global, including the Statistical Bulletin of China’s Outward Direct Investment, Guide for Countries and Regions on Outward Investment and Cooperation, China’s Outward Investment Development Report, and Textbook Series of Multinational Operation and Management Talents Training. From the feedback of enterprises and the actual effects, these public services have helped enterprises pay less tuition fees and make less detours. Enterprises have learned about the political and economic conditions, legal system, humanity environment, business environment, customs and habits of targeted countries (regions), known the latest developments, future trends, policy orientation, and work focus of China's going global, and recognized the possible risks and challenges of going global. Enterprises have gained knowledge, improved their ability, and strengthened their confidence. Today we officially released the 2018 edition of Guide for Countries and Regions on Outward Investment and Cooperation, the 2018 Edition of China’s Outward Investment Development Report, and the new edition of Textbook Series of Multinational Operation and Management Talents Training, which are the latest public service products for enterprises to go deeper and further and achieve more progress in the new situation.

Since 2009, the Ministry of Commerce has organized think tanks and experts to compile the annual Guide for Countries and Regions on Outward Investment and Cooperation and China’s Outward Investment Development Report in 2009 and 2010 respectively, which has been widely welcomed for more than 10 years. According to statistics, the 2017 Guidebook has been clicked, reprinted and quoted about 40 million times, and the hit number for Development Report has reached almost 100,000. Based on the 2009 edition of Textbook Series and according to the needs of the situation development, the Textbook Series of Multinational Operation and Management Talents Training published this time was supplemented and revised especially for the new situations and new problems faced by China's enterprises when going global. Three new books were added to the original seven ones, and there are 10 altogether now, covering policy collection, comparison between cross-border mergers and acquisitions, and comparison between operation and management risks. This has made the training materials more comprehensive, systematic and complete. Later, two experts present here will also interpret the above three public service products from a professional perspective. We hope that enterprises, commercial departments at all levels, and research institutes will make good use of the above public products, and give us feedback and suggestions in time so as to lay a solid foundation for further improvement.

In 2019, we will thoroughly implement the arrangements of the CPC Central Committee and the State Council, focus on commercial work, innovate foreign investment modes, continuously strengthen service guarantees, provide enterprises with more timely, targeted and authoritative public service products and guide enterprises to better participate in international economic and trade cooperation in the new era.

Thank you.

[Gao Feng]: Thanks for Deputy Director Han Yong’s introduction. I would like to invite Vice President Qu Weixi to introduce the 2018 Edition of Guide for Countries and Regions on Outward Investment and Cooperation.

[Qu Weixi]: Today, MOFCOM officially released The Guide for Countries and Regions on Overseas Investment and Cooperation 2018. In 2008, MOFCOM organized more than 100 foreign-invested organizations and research institutes to jointly prepare for the Guide. The first edition of the Guide was published for the first time in 2009, and the relevant contents and information of the Guide were updated every year according to the new national foreign investment strategies. It is now the 10th edition. This is an important public service product that MOFCOM has actively offered to the public as China’s chief responsible ministry of foreign investment. After ten years of polishing, the Guide has become one of the best public goods of MOFCOM in terms of hits and corporate response. The Guide provides a comprehensive introduction to the basic situation, economic situation, policies and regulations, investment opportunities and risks of countries (regions) where investment cooperation is conducted, and provides rich basic information for Chinese enterprises to carry out foreign investment cooperation. It provides supports for enterprises to actively and steadily carry out transnational business operations, and gives necessary tips and suggestions for problems that enterprises may encounter when doing local business.

The 2018 edition of Guide covers 172 countries and regions, including 27 in Asia, 63 in West Asia and Africa, 12 in Europe and Asia, 36 in Europe, and 34 in Americas and Oceania. The new edition of the Guide has completely updated the original data, information and policies and regulations. Specifically, the new edition of the Guide follows the changes of the world economy and political situation, and updated of election results of countries, diplomatic relations, macroeconomics, characteristic industries, financial environment, investment regulations, preferential policies, and risk prevention in order to ensure that enterprises understand the investment environment of the host country (region) timely. The new edition of the Guide also systematically and objectively updates the infrastructure status and development planning especially for the countries related to the Belt and Road Initiative. For example, India has announced the latest development plans and planned investment scales in the basic fields of electricity, roads and railways. Indonesia has proposed development plans such as the establishment of a new economic growth center and the implementation of the fourth industrial revolution road map. Nepal’s new fiscal year budget will balance the development of various economic sectors, take care of the interests of all groups, strive to create a strong investment environment, and eliminate the widespread phenomenon of repeated taxation. The new edition of the Guide follows up and updates the above contents in a timely manner, which will help the enterprises “going global” to scientifically judge the investment environment, deploy investment projects early, and accelerate the process of interconnection with the related “Belt and Road” countries. In addition, the new edition of the Guide also adds the Gambia fascicle. In the future, we will add more country (region) fascicles according to the needs of the competent commerce departments and the actual needs of enterprises to protect the foreign investment of Chinese enterprises.

Over the past ten years, the Guide has become a brand information product for the government's competent departments to strengthen public services and guide enterprises to go global safely and efficiently. It has also become an encyclopedia for those going out enterprises, and its influence in society has been continuously improved. The Guide has played an important role in helping enterprises to objectively understand the investment environment of relevant countries (regions), improving the scientific nature of foreign investment decisions, enhancing the safety awareness in the process of transnational operations, and effectively preventing various risks. In the preface to the Guide, Vice Minister of Commerce Qian Keming pointed out that it’s hoped that the Guide covering 172 countries and regions can guide the enterprises that intend to go abroad and carry out foreign investment cooperation. As the main compiling party of the Guide, the institute welcomes all sectors of the community to provide valuable opinions for our work so that we can continuously improve this set of Guides to help enterprises actively and steadily carry out transnational operations, build harmonious foreign investment partnership, and let it play a greater role as a compass for Chinese companies to go global. The new Guide is uploaded on the website of MOFCOM. The readers may log in to the website and download it in the "Public Service - Country (Region) Guide" column. At the same time, we have also produced CDs for the new edition of the Guide, which will be free to the business through the local business authorities, and readers can also directly request it from the guide office of our Institute.

Thank you.

Xing Houyuan: Members of the press, it’s a great pleasure to meet you here. On behalf of China Services Outsourcing Research Center, a think tank under MOFCOM, I’d like to brief you on the two public service goods. Thanks to the interest and support of the MOFCOM leadership, and under the direct guidance of the Department of Outward Investment and Economic Cooperation, the Center undertook the compilation of the 2018 report on China’s outbound investment development for release today.

The 2018 Report on China’s Outbound Investment Development takes on the annual theme of optimized structure with a special focus on outward direct investment. The Report is different from past ones in an important way by excluding overseas contractual engineering and labor cooperation. Ten years into its publication, a small change is introduced to its title to remove “cooperation”. These are some updates of this year. The Report takes a comprehensive look at the characteristics of China’s outbound investment in 2017 and systematically investigates the related policy measures issued by the CPC central leadership, the State Council and its departments with an outlook on future opportunities and challenges. The Report consists of 7 sections and 24 chapters.

Section One Development Landscape presents a rounded overview of China’s ODI in 2017 with an outlook on prospects.

Section Two Policy Measures systematically examines the ODI policy measures issued by the CPC central leadership, the State Council and its departments in 2017 and the first half of 2018 from the three dimensions of comprehensive policies, fiscal, tax and financial policies and industry development policies and offers an authoritative reading on key policy measures.

Section Three Regional Cooperation samples seven regions of Asia, Africa, Europe, North America, Oceania, Latin America, and Belt and Road countries to take stock of China’s investment in these regions in 2017 and share a preview on development trends.

Section Four Industrial Development highlights five representative industries in going global for analysis and summary, namely, automotive, steel, engineering machinery, communications and agriculture, providing an overview and profile of ODI in the five sectors while analyzing and assessing current and future opportunities and challenges.

Section Five Local Development focuses on Liaoning, Shanghai, Zhejiang, Guangdong and Chongqing, all of which are active outbound investors with distinctive characteristics, for the status of business, policy measures and plans for the next steps while analyzing the prospects of these regions in ODI.

Section Six Corporate Practice conducts comprehensive analyses over the business structure type, industrial, provincial and overseas distribution, and the champions of outbound investors from the business perspective and selects a few typical cases for experience sharing.

Section Seven Expert View brings together four Chinese experts on outbound investment to share their views on outbound investment and supply-side structural reform, how outbound investment deepens Belt and Road, the outlook on the development of China-Africa cooperation and the development of overseas trade and economic cooperation zones.

The next is my reading of the Textbook Series on Talent Training for Multinational Operation and Management.

As the executive editor-in-chief, I’d like to offer the following reading on the Series on behalf of the compilation team.

The Report of the 19th Party Congress set forth to introduce innovative outbound investment models, promote international capacity cooperation, form global-oriented trade, investment and finance, and production service networks, and accelerate the cultivation of new edges in international competition. In the new era, outbound investment cooperation is a key leverage for China to help create a new landscape for comprehensive open-up and build a community of shared future for all mankind. It is also a key driver for promoting supply-side structural reform, foster world-class multinationals, and secure new edges in international competition. As such, Chinese companies’ multinational operation capabilities concern the development of a community of shared future for all mankind and the realization of goals and tasks for a new wave of opening up. Only by enhancing the standards of cross-border operation and management and acquiring the ability to harness domestic and international markets and consolidate local and global resources can Chinese companies adapt to emerging trends in economic globalization and meet the needs to build a strong and modernized socialist country with Chinese characteristics.

President Xi Jinping points out that development is the top priority; talent is the foremost resource; and innovation is the primary driver. To follow up on the spirit of President Xi’s instruction, the executives of multinationals need strengthened knowledge and policy training to foster a batch of management talent for cross-border operation. Following the work plan of MOFCOM CPC Leadership Group and entrusted by the Department of Outward Investment and Economic Cooperation, China Services Outsourcing Research Center organized preeminent Chinese experts and scholars to revise and supplement the Textbook Series on Talent Training for Multinational Operation and Management published in 2009.

The Textbook Series has two major characteristics. The title shows our focus on the comparisons between China and other countries. From the comparative perspective, the whole set investigates the differences between China and foreign countries in development philosophy, corporate strategy, behavioral model, world resources consolidation and world market exploration to find faster and better development dynamics. Its second characteristic is practicality. The Series combs through the related theories of China’s multinational operation and management and reflects on our views and positions through extensive case studies to guide companies’ development practice.

The revised and supplemented Textbook Series on Talent Training for Multinational Operation and Management comprises ten books, namely, The Compilation of Laws, Regulations and Policies of the Outbound Investment Cooperation of China, Policy Comparisons of Chinese and Foreign Investment Cooperation, Comparisons of International Strategies and Management of Chinese and Foreign Companies, Comparisons of Financing Philosophies and Models of Chinese and Foreign Multinationals, Comparisons of Chinese and Foreign Companies in Cross-border M&A and Consolidation, Comparisons of Chinese and Foreign Companies in Risk Management of Cross-border Operation, Comparisons of Chinese and Foreign Companies in Cross-cultural Management and Corporate Social Responsibility, Comparisons of Chinese and Foreign Models for International Infrastructure Cooperation, Comparisons of Chinese and Foreign Overseas Economic and Trade Cooperation Zones, and Case Study Comparisons of Chinese and Foreign Companies in Multinational Operation. Of these, Comparisons of Chinese and Foreign Overseas Economic and Trade Cooperation Zones, Comparisons of Chinese and Foreign Models for International Infrastructure Cooperation, and Case Study Comparisons of Chinese and Foreign Companies in Multinational Operation are the three additions to meet the actual needs of Belt and Road development, China’s fresh wave of opening up, and the going global of Chinese companies.

Here I’d like to specially recommend a few to the friends from the press. The Comparisons of International Strategies and Management of Chinese and Foreign Companies introduces the types of development of contemporary multinationals. In particular, since the financial crisis, given the enormous shifts in global political, economic, security and technological landscapes, global multinationals are all making strategic adjustments. This book focuses on the development and types of multinational in the new era, suggesting that the new goal for Chinese companies is to become world-class multinationals. It notes particularly that Japanese and Mexican companies are good examples to follow for Chinese companies at the current stage. Given the domestic development environment, conditions and foundation, we may not see Chinese multinationals adopt US and European models overnight. But Japanese and Mexican companies point to a good path for late movers. The book identifies the strategic direction for the growth of Chinese multinationals and strategic patterns for different markets, such as the ‘embed’ strategy for the closely defended market, the niche strategy for the neglected market, the ‘undertake’ strategy for the reluctantly abandoned market, and the preemptive strategy for new-tech market, with explorations on the new changes of multinational organization structures in the context of the Internet, new models of international R&D strategic alliances, and new strategic missions of Chinese companies under the Belt and Road initiative.

Another volume of the book "Cross-Cultural Management of Chinese and Foreign Enterprises and Comparison of Corporate Social Responsibility" is also a focal point that our domestic multinational enterprises need to pay attention to so as to improve the weak links. This volume points out that the influence of cultural factors on multinational enterprises is comprehensive, all-round and covers the whole process. It might be invisible, yet with immense power. Different cultural backgrounds impact people's different consumption patterns, needs and the priority of their desires. The values and efforts that people put in their work determine the ways and preferences of business interactions between suppliers, competitors, customers and multinational companies. Multinational corporations at national level are large in scale and strong in economic strength, and have become the dominant force in the world economy. Corporate social responsibility management, which is now becoming an important part of enterprise management innovation and corporate competition strategy, is truly integrated into the entire process of the development and reform of enterprises. This volume analyzes the mechanisms of social responsibility assumption by enterprises in Western countries and how corporate social responsibility is diversified in China.

In addition, take "Comparison of Chinese and Foreign Modes in the International Model of Infrastructure" as an example, it focuses on the real change of the role of Chinese enterprises from participating in the foreign contracted projects to now playing a central role in international cooperation such as Belt and Road Initiative (BRI). Besides, it also compares different features of the World Bank, the Asian Development Bank, and other foreign enterprises when engaging in international infrastructure cooperation, as well as their different positions in the industry chain and the value chain in international infrastructure cooperation. Revision and addition are made to this series of books with a view to give theoretical and policy guidance to those engaged in the business of outward investment, and it is hoped that by drawing on the common practice and useful experience of domestic and foreign enterprises, they can identify the gap with these enterprises, find the right direction moving forward, enhance self-confidence and strive to improve the ability and level of multinational management, so as to play a due role in building China into an economic and trade power, and make new and greater contributions to promoting the Belt and Road Initiative and building a community of shared future for mankind.

It is necessary to point out that the 2009 edition is an important basis for this revision which actually is an update of more than 70% of the content of 2009 edition. The three new volumes are compiled with new titles and architectures.

[Gao Feng]: Thank you for the detailed introduction by Deputy Director General Xing Houyuan. DDG Xing is also an expert in outward investment by Chinese enterprises. Just now, DDG Han Yong introduced three public products from the perspective of MOFCOM and the provision of public products and services to enterprises by MOFCOM as a government department. Vice President Qu Weixi gave a basic introduction to the relevant background of the investment guidance and the “Country (Region)-Specific Guidance for Outward Investment Cooperation (2018 edition)” from the perspective of CAITEC. DDG Xing gave a detailed explanation about the “Report on Development of China’s Outward Investment" and the "Textbooks of Talent Training for Multinational Operation Management". Now I’d like to open the floor for questions about the theme of the three public products released today. As usual, please indicate your news agency before asking questions.

[CGTN]: After 2017, some Western developed countries have strengthened their review on foreign investment, and some related bills have been revised or established. Against this backdrop, how will the "Country (Region)-Specific Guidance for Outward Investment Cooperation " guide Chinese companies to invest overseas? Thank you.

[Qu Weixi]: You have asked a very good question. Indeed, Chinese companies now are facing the severe challenge of investment review in some developed countries when investing overseas. Some M&A projects by some Chinese companies have also been blocked by the competent authorities of some developed countries due to strict restrictions. Since 2009, MOFCOM has worked with CAITC and Chinese economic and commercial counselor’s offices and sections overseas to update the Guidance every year. The purpose is to help enterprises understand the overseas investment environment, raise their risk awareness, help them carry out multinational operations in an active and steady manner, continuously improve their international operation capabilities and forge a harmonious outward investment partnership. The global economy is recovering steadily yet with a weak foundation, and the shift from old to new growth drivers has not been completed. Trade protectionism and populism are both on the rise, with increasing uncertainties and destabilizing factors in the international landscape. In such general context, MOFCOM is committed to providing public services, guiding enterprises to prevent risks, and promoting the steady development of enterprises that are going global. As one of the government's public products, the Guidance (2018 edition) closely follows the changing domestic and international investment environment, timely updates host countries’ laws, regulations and policies related to investment, so as to offer proper guidance for risk prevention and control. For instance, the Guidance gives thorough introduction to changes of laws governing foreign investment in some countries and regions, which provides opinions and suggestions for enterprises to develop mutually beneficial and win-win economic and trade cooperation and to create a harmonious relationship with local communities. It also helps enterprises make more knowledge-based outward investment decisions, enhance their sense of responsibility, awareness of risk, bring operation in compliance in the process of conducting multinational operation, effectively prevent various risks and achieve steady progress. Thank you.

Yi Cai: When interpreting the “Report on Development of China’s Outward Investment”, structure optimization has been mentioned repeatedly. What are the main aspects that can reflect structure optimization of China's outward investment? Thank you.

Xing Houyuan: Optimizing the structure is the core theme of China's outward investment in 2017, and it is also important policy guidance. That’s why we choose “structure optimization” as the theme of the annual report. The issue you just mentioned is indeed an issue that has received wide attention at home and abroad. We can see that structure optimization is mainly manifested in the regulation and guidance of irrational outward investment, thus the industrial structure has been optimized, which contributes to the development of outward investment in advanced manufacturing and modern service sector, which accounts for a relatively large share in total outward investment and witnesses a steady growth. Structure optimization is also reflected in another aspect, which is regional structure. In 2017, outward investment in the BRI countries grew steadily, which leads to a remarkable increase in China’s share of global investment. Outward investment in the BRI countries has satisfied their needs of social and economic development. More importantly, it is also in line with China's aim to become a trade power and achieve high-quality economic development. Aforementioned are two aspects that mainly demonstrate structure optimization.

Economic Information Daily: My question is for Mr. Qu. Which countries and regions have been added to the “Country (Region)-Specific Guidance for Outward Investment Cooperation (2018 edition)”? What are the reasons to add these countries and regions? Is it possible to add other countries and regions in the future? Thank you.

Qu Weixi: We have just introduced that the Guidance (2018 edition) covers the major markets for Chinese enterprises’ outward direct investment, contracted engineering projects and labor cooperation overseas. These markets cover 172 countries and regions around the world and 90% of recipient countries and regions of China’s ODI. This year we have added the volume of Gambia. As everyone knows, the economic and trade cooperation between China and Gambia now enjoys a rapid development, and many Chinese enterprises take the initiative to go to Gambia to explore business opportunities after the two countries resumed diplomatic relations. To better serve enterprises and individuals interested in economic and trade cooperation with Gambia, we have added a Gambia volume this year to provide a comprehensive introduction to the political, economic, social and cultural environment of Gambia, as well as relevant policies and regulations regarding trade, investment, labor, and environmental protection that are necessary to conduct investment cooperation locally.

In order to help enterprises grasp the changes in the environment of relevant countries and regions in a timely manner, make knowledge-based decisions on overseas investment and cooperation, and effectively prevent external risks, new countries (regions) will be added in the future according to the specific needs of enterprises going global. Thank you.

China Business Journal: We noted that the total international investment in 2017 declined significantly. What are the reasons? Against this sluggish backdrop, how will China guide domestic companies to take their business international? Thank you.

Han Yong: Total international investment dropped markedly in 2017 for multiple reasons. First, some countries adopted a range of macro-control measures as global economic slowed down, such as significantly lowering corporate tax and encouraging the re-shoring of overseas profits, resulting in a dramatic decline of outbound investment from these countries and bringing down the overall investment globally; second, certain countries imposed stricter security screening of FDI that affected cross-border capital flow. This explains the change in the flow and pace of international FDI.

On the part of China, we will guide businesses to make cross-border investment with high quality in the following aspects: first, we need to create a favorable, sound and predictable external environment for businesses operating in multiple jurisdictions, advance the efforts to jointly build the Belt and Road, continue cooperation with related countries in international production capacity and infrastructure connectivity. Many businesses are aware that the Belt and Road international cooperation represents numerous opportunities and are taking actions. To satisfy the need of China’s economic development, in particular the need for supply-side structural reform and high-quality economic development, we need to encourage the businesses to go global on market-based terms and follow international practices. The Chinese government will provide adequate guidance. In the meantime, as the companies face growing challenges and risks of all kinds overseas, we need to better guide them in risk control to strengthen their capacity and level in risk prevention, conduct better multinational operation, and pursue win-win and joint development. Thank you.

Gao Feng: In the interest of time, we will take the last question.

CNR: Director Xing, who are the target audience of the Collection of Books on Training for Multinational Operation Management? How will it be useful to them?

Xing Houyuan: Judging from the readership since MOFCOM decided to publish this collection and the 2009 version, the main audience is the managing teams of the businesses that have operation overseas and those that prepare to go global. There are also students who are interested in the management of multinationals who are our target audience.

We intend to compare the thinking and behaviors of Chinese and foreign managers to fill the gaps and emulate the best domestic and foreign enterprises, so that the overall cross-border management of Chinese companies can be improved. This is what this collection hopes to achieve. We have included numerous case studies in each book that can be useful and practical for businesses.

Gao Feng: This is the end of the press conference. I’d like to thank the three speakers and all the journalists. Thank you.