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MOFCOM BJT

MOFCOM holds Regular Press Conference (January 9, 2025)

He Yadong: Friends from the press, good afternoon. Welcome to the regular press conference of the Ministry of Commerce. I have no briefing to make today, and I’m ready to take your questions.

CCTV: According to the website of the Ministry of Commerce, the the China-Maldives Free Trade Agreement and the China-Singapore FTA Upgrade Protocol have come into effect recently. Could you give us more details?

He Yadong: The resolution of the third Plenary Session of the 20th CPC Central Committee set out to expand the global network of high-standard free trade zones. The China-Maldives Free Trade Agreement came into effect on January 1 this year. This is a practical measure to implement the important consensus between the leaders of the two countries and enrich the strategic cooperative partnership. In terms of trade in goods, more than 95 percent of the tariff lines and two-way imports achieved zero tariffs. After coming into force, the agreement has brought benefits to most of China's exports to the Maldives, including ships, electrical equipment and other industrial products, and agricultural products such as vegetables and fruits. The vast majority of Maldivian fish and aquatic products, nuts and wooden ornaments can also enjoy preferential treatment when exported to China. In terms of trade in services, the two countries have further opened up their service sectors. In terms of investment, national treatment is provided to each other to encourage and protect two-way investment.

The China-Singapore Free Trade Agreement Upgrade Protocol came into force on December 31, 2024. In terms of market access, the two sides have committed to high-level openness for services and investment through the negative list model, opened up manufacturing markets to each other, and reduced market barriers in various service sectors. In terms of rules, the two sides have set up institutions for high-standard rules in trade in services, investment and telecommunications services, and further expanded cooperation in emerging areas such as the digital economy. The entry into force and implementation of the Protocol will further deepen the

All-round High-quality Future-oriented Partnership between China and Singapore.

To date, China has concluded 23 free trade agreements with 30 countries and regions, spanning five continents. The network of free trade zones continues to expand and go deeper. The content and quality of free trade agreements are also improving. The negative lists for trade in services and investment, as well as new content such as standardization cooperation and digital economy, have become the default elements in China's free trade agreements. Going forward, we will make active efforts to expand the global network of high-standard free trade zones, and ensure high-quality implementation of the free trade agreements already in force, so that they can better benefit the people of China and our free trade partners. Thank you.

Shenzhen TV: We noted that the Department of Services and Trade of the Ministry of Commerce recently issued a notice for public consultation on the adjustment of the List of Technologies Prohibited and Restricted from Export in China. The technology for the preparation of cathode battery materials is added to the list. Could you give us more details? What are the considerations behind this adjustment?

He Yadong: In accordance with the Foreign Trade Law of the People's Republic of China and the Regulations of the People's Republic of China on the Administration of Technology Import and Export, and in light of the latest scientific and technological development and the need to promote technology trade, the Ministry of Commerce, together with the Ministry of Science and Technology and other departments, revised the List of Technologies Prohibited and Restricted from Export in China. We welcome inputs and comments from the public.

I want to stress that the adjustment of the Catalogue this time is a routine exercise, not targeted at any particular industry (or country). The Ministry of Commerce will fully hear from the public to further improve the Catalogue. Thank you.

China News Service: The Ministry of Commerce (MOFCOM) and the State Administration of Foreign Exchange (SAFE) issued an announcement to abolish the management measures for foreign investment companies. Could you provide some details on this?

He Yadong: the scale of reinvestment by foreign-funded enterprises in China has continued to grow in recent years, and some foreign companies have expressed hope for the removal of restrictions on addressing their capital needs of reinvestment through domestic loans at the roundtable meetings in MOFCOM. To implement the Foreign Investment Law and encourage multinational companies to establish headquarters-type institutions in China, MOFCOM and SAFE have decided to abolish the notification released in 2011 that you mentioned, lifting the restrictions on foreign investment companies using domestic loans to carry out equity investment. Foreign investment companies with financing demands can apply according to regulations such as the Guidelines on Risk Management of Merger and Acquisition Loans granted by Commercial Banks.

Foreign-funded enterprises are welcome to report any difficulties or problems they encounter in their investment and operations to the various levels of foreign investment task forces or directly to MOFCOM through the system for handling foreign-funded companies’ complaints. MOFCOM stands ready to coordinate and resolve the reasonable requests of foreign-funded enterprises, providing a good business environment for foreign enterprises to invest and operate in China. Thank you.

Yicai: The 2025 National Online New Year Shopping Festival will be held from January 7 to February 5 as the first major online event initiated by MOFCOM in 2025. What are the features of the shopping festival that consumers can expect?

He Yadong: The 2025 National Online New Year Shopping Festival was officially launched on January 7. The festival is not only the first major online event of MOFCOM this year but also the first nationwide online pro-consumption event following the inscription of the Spring Festival on the UNESCO Representative List of the Intangible Cultural Heritage of Humanity. The festival will last until February 5.

Compared with previous festivals, the festival adopts a “3+N” model for the first time, which means three main events and more distinctive consumption activities across localities and platforms focusing on consumption highlights like dining, shopping, entertainment, and tourism to celebrate the Spring Festival of the Year of the Snake. The three main events include: the launch ceremony of the 2025 National Online New Year Shopping Festival, which was held in Jiangxi on January 7 with launch ceremonies for special activities kicking off in places such as Jiangsu, Henan, Shaanxi, and Guangzhou; the Silk Road E-commerce Spring Festival, which will debut in Shanghai on January 22; and the China (Guangxi) ASEAN – Online New Year Shopping Festival, which started on December 31 in Nanning.

Overall, the New Year Shopping Festival exhibits four characteristics:

First, highlighting premium consumption. On the basis of ensuring the supply of necessities, various regions respond to the demand for upgrading living standards by increasing the supply of quality products and services such as time-honored brands, trendy domestic products, and online travel experiences.

Second, showcasing intangible cultural heritage. With the inscription of Spring Festival on the UNESCO Representative List of the Intangible Cultural Heritage, localities combine stimulating consumption with cultural promotion to create consumption scenarios with a traditional and festive atmosphere. Special activities like Intangible Cultural Heritage Custom Performances and Live Streaming of Intangible Cultural Heritage Inheritors will be held to offer interactive and immersive experiences of local customs of the Spring Festival.

Third, introducing more global products. Focusing on integrating domestic and foreign trade, localities encourage direct shipment from origins and factories to introduce more Silk Road e-commerce products and premium international goods directly into the shopping market of New Year goods.

Fourth, promoting integrated consumption. Exploring new models of integrated development, localities combine offline exhibitions and online live streaming to comprehensively showcase and promote local speciality products. E-commerce platforms use digital technology to launch activities such as Winter Tours and A Journey of Savoring Chinese New Year, integrating commerce, tourism, culture, sports, and health to promote consumption. Thank you.

Southern Metropolis Daily: MOFCOM today released the final finding of its investigation on trade and investment barriers posed by the EU in its practices under the Foreign Subsidies Regulation (FSR). Can you give us more details?

He Yadong: In response to the application of the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), MOFCOM launched a trade and investment barrier investigation on the practices of the EU under the FSR on July 10, 2024. After filing the case, MOFCOM verified the relevant situation with all stakeholders through questionnaires and field investigations in accordance with the law, extensively listening to opinions to ensure that the investigation is fair, just, open and transparent. During the investigation, the European Commission did not submit any questionnaire or make related comments.

According to the investigation, there are many unreasonable practices in the Commission’s FSR investigations on China, which caused restrictions and hindrance to the access of products, services and investments of Chinese enterprises, compromising the competitiveness of Chinese businesses and their products in the EU market. In view of this, MOFCOM has determined in accordance with the law that relevant practices of the EU FSR investigations constitute trade and investment barriers.

According to Article 33 of the Investigation Rules of Foreign Trade Barrier, MOFCOM will,  according to the circumstances, take measures such as holding bilateral consultations to request the European side to adjust or change relevant practices, so as to provide an open, fair, just, non-discriminatory and predictable environment for Chinese enterprises to invest and operate in Europe. Thank you.

SETV: 1 January 2025 ushered the Regional Comprehensive Economic Partnership (RCEP) into its third year. What were the highlights of RCEP in the past three years? What are the expectations for it in the future?

He Yadong: RCEP is the free trade agreement with the biggest population involved, the largest economic and trade scale and the greatest development potential in the world. Since its entry into force three years ago, it has continued to expand influence, deepened trade and investment cooperation among regional members, and become the main channel for economic integration in the Asia-Pacific region.

Firstly, RCEP mechanism has been continuously improved. Serving as the non-ASEAN rotating presidency of RCEP in 2024, China made every effort to push for the accession of new members into RCEP. With the joint efforts of all parties, the RCEP Support Unit (RSU) was formally put into operation last year. By far, Hong Kong (China), Sri Lanka and Chile have submitted formal applications to join RCEP, and some economies have expressed strong interest in joining it as well. The appeal and influence of RCEP are constantly increasing.

Secondly, RCEP has deepened regional economic integration. RCEP has further eased market access for goods, services and investment in the region, optimized the business environment in the region, and made the flow of factors more free and convenient. In particular, policies such as the Cumulative Rules of Origin of RCEP and the 6-hour customs clearance of express cargo are conducive to trade in the region. In 2023, the total trade of RCEP in the region reached USD5.6 trillion, and the attracted greenfield investment was 2.2 times that of 2021.

Thirdly, RCEP has effectively consolidated China’s foreign trade fundamental. Since the entry into force of RCEP, China’s trade in goods with RCEP members has accounted for more than 30% of China’s total imports and exports. In 2023, it reached RMB12.7 trillion, an increase of 6.3% over 2021. From January to November 2024, it reached RMB12 trillion, up by 4.4% year on year.

As the largest economy of RCEP, China will continue to implement RCEP in an all-round and high-quality manner, making greater contribution to promoting regional integration and achieving common development and prosperity in the Asia-Pacific region. Thank you.