He Yadong: Friends from the press, good afternoon. Welcome to MOFCOM’s regular press conference. Since I don’t have any announcement to make today, we may proceed directly to the Q&A session.

The Cover: It is reported that the German government has reservations about the EU launching a countervailing investigation on electric vehicles from China. According to the German government, tariffs can protect industries in the EU, but they may also have negative effects. What is the comment of the Ministry of Commerce?

He Yadong: On October 4 this year, the European Commission launched a countervailing investigation on electric vehicles from China on its own without any application from EU industries. The investigation initiated by the European Commission lacks sufficient evidence, which are typical protectionist practices. Not only does China strongly oppose it, but it is also questioned by many EU member states and industries, as they believe that protectionist measures will only be counterproductive.

China believes that this countervailing investigation is not in the interests of the automobile industries of China and Europe, and seriously disrupts and distorts the global automobile supply and industrial chains, including the European Union. This harms the response to climate change by China, Europe and the world, and will have a negative impact on China-EU economic and trade relations.

The China-EU economic and trade cooperation is about complementary advantages and mutual benefits. We hope that the European Commission can carefully hear the views of all parties, abandon trade protectionist practices, support Chinese and EU automobile industries in deepening trade and investment cooperation, promote mutually beneficial and win-win development, and create a sound environment for China and Europe to jointly respond to climate change and achieve green transformation. Thank you.

Shenzhen TV: It is reported that U.S. Secretary of Commerce Gina M. Raimondo recently said at the annual Reagan National Defense Forum that China poses a major threat to U.S. national security and called for measures to stop China from getting semiconductors and cutting-edge technologies. What is your comment on Gina M. Raimondo’s remarks? How does China respond to U.S. export restrictions on semiconductors and cutting-edge technologies?

He Yadong: During his meeting with President Biden in San Francisco, President Xi Jinping stressed that China does not have a plan to surpass or unseat the United States, and the United States should not scheme to suppress and contain China. Suppressing China's science and technology means curbing high-quality development of China and depriving the people of China of their right to development. Both leaders have agreed to responsibly manage the competitive factors in bilateral relations. It is hoped that relevant US departments will join us in earnestly implementing the important consensus reached at the meeting between the heads of states of China and the United States in San Francisco.

China has pointed out on many occasions that the United States has overstretched the concept of national security, abused export control on China and restricted two-way investment, undermined market rules and the international economic and trade order, and threatened the stability of global industrial and supply chains. We firmly oppose that. These measures can't stop the development of China, but will only cause American enterprises to lose the market in China and harm their own interests. China will pay close attention to the trend and influence of relevant U.S. measures and resolutely safeguard its rights and interests. Thank you.

Reuters: The United States issued guidance last week to limit Chinese content in batteries eligible for electric vehicle tax credits starting next year. What is the comment of the Ministry of Commerce? What impact will it have on Chinese enterprises?

He Yadong: China’s electric vehicles and relevant products are very popular in the global market. The U.S. administration issued the detailed rules for the implementation of subsidy policies for electric vehicles under the Inflation Reduction Act, which discriminates against Chinese enterprises and excludes the products of Chinese enterprises from the scope of these subsidies. This represents typical non-market policies and practices. The above discriminatory subsidy policies of the United States violates the basic principles of the WTO, seriously disrupts international trade and investment, and undermines the stability of the global industrial and supply chains. At present, many WTO members, including China, have expressed serious concern about such policies at the WTO Council for Trade in Goods and on other occasions.

Electric vehicle is a pace-setting technologically advanced industry, and full competition is the key to technological progress. The United States has artificially set up trade barriers, which hinders fair competition and does no good but great harm to the development of electric vehicle technology and industry.

The United States should respect market principles, strictly abide by WTO rules, correct the wrong practice of discriminatory subsidies and create a fair, just and non-discriminatory business environment. China will continue to evaluate the implementation of U.S. measures and take necessary measures to safeguard its legitimate rights and interests. Thank you.

Kyodo News Agency: According to the ROK government, China has stopped customs clearance for the export of urea to the ROK. Can the Ministry of Commerce explain it?

He Yadong: China is a large producer and consumer of urea. On the basis of ensuring domestic demand, China exports millions of tons of urea to the international market every year. In the first 10 months of this year, China exported 3.43 million tons of urea, up 65% year-on-year. We have noticed relevant reports in the media. As we understand, the relevant departments of China and the ROK have maintained communication in this regard. Thank you.

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