MINISTRY OF COMMERCE PEOPLE'S REPUBLIC OF CHINA
MINISTRY OF COMMERCERegular Press Conference of the Ministry of Commerce on September 19, 2012
Dear friends from the Press,
Welcome to the press conference of today. My name is Shen Danyang, spokesman of the Ministry of Commerce. I am very glad to meet you all again and make a briefing on China's business performance in January - August this year, and answer your questions.
I. Performance in Domestic Market
According to NBS statistics, retail sales of consumer goods in August this year amounted to 1.6659 trillion Yuan. The nominal growth was 13.2%, 0.1 percentage point faster compared with that of the previous month. The actual growth was 12.1%, price fluctuation readjusted. Retail sales of consumer goods from January to August this year amounted to 13.1195 trillion. The nominal growth was 14.1%, and the actual growth was 11.4%, price fluctuation readjusted, 0.1 percentage point faster compared with that of the previous month. The growth of consumer market in August slowed down and steady. The main features are as follows:
A, Marketing by large and medium - sized circulation enterprises rose slightly. According to MOFCOM, sales value of 3,000 key retailers in August was up by 8.5%, 0.7 percentage point faster as compared with that of the previous month. Retail sales of consumer goods by enterprises above designated size rose 13.1%, 0.1 percentage point higher as compared with that of the previous month.
B, Marketing of foodstuff and clothing rebounded slightly. According to MOFCOM, sales value of foodstuff by 3,000 key retailers in August was up by 12.1%, and that of clothing rose 10.6%. The growth rate was 0.7 and 2.1 percentage points higher as compared with that of the previous month. Among that, growth rate of food, clothing, shoes and hats was 1.3, 1.8 and 3.3 percentage points faster as compared with that of the previous month.
C, Marketing of automobiles, home-appliances and gold, silver and jewelry remained steady. Affected by the subsidy policy on energy saving, marketing of automobiles and home-appliances remained steady. Sales of passenger vehicles in August saw a year-on-year increase of 8.8%, up by 11.3%, 0.6 percentage point faster as compared with that of the previous month. According to MOFCOM, sales value of home-appliances and audio-visual equipment by 3,000 key retailers in August was up by 0.8% and it was a positive growth after April. Driven by rising international gold prices, domestic demand for gold and silver jewelry increased. Sales value of gold, silver and jewelry of 3,000 key retailers rose 9.2%, up by 1.6 percentage point as compared with that of the previous month.
D, Marketing of cultural l and physical culture commodities slowed down. According to MOFCOM, sales value of cultural l and physical culture commodities by 3,000 key retailers in August was down by 1.4% and 3.4% respectively, 0.8 and 1.0 percentage points lower as compared with that of the previous month.
E, Price of farm produce rebounded slightly. Consumer price in August was up by 2%, 0.2 percentage points compared with that of the previous month and 4.2 percentage points slower year-on-year. According to MOFCOM, prices of vegetables, eggs, poultry and pork began to rise, with a year-on-year increase of 13.3%, 4.0%, 0.9% and 0.2%. Prices of rice and edible oil rose steadily, of which small package of rice and small package of flour rose 0.7% and 0.2% year-on-year; soybean oil, peanut oil and rapeseed oil rose 0.8%, 2.2% and 1.2% year-on-year, the growth rate was 0.5, 0.3 and 0.2 percentage point higher as compared with that of the previous month.
II. Foreign Trade
According to Customs statistics, China's imports and exports from January to August this year amounted to US$ 2.49762 trillion, with a year on year increase of 6.2%. Among that, exports amounted to US$1.30911 billion, up by 7.1%; and imports amounted to US$ 1.18851 billion, up by 5.1%. Trade surplus was US$120.6 billion, rose 31.8%. The main features of foreign trade are as follows:
A, Trade with emerging market remain steady. From January to August, bilateral trade value of China-ASEAN rose 7.7%, China-Russia and China-Brazil was up by 14.9% and 6.3.% respectively, and China-U.S. saw an increase of 9% while that of China-EU and China-Japan dropped 1.9% and 1.4% respectively.
B, Export by the central and western China was fast up. From January to August, growth rate of export by Chongqing was1.7 times and that of Henan, Sichuan and Jiangxi was up by63.4%, 47.8% and 43.3% respectively. The growth rate of export of Guangdong rose 5.8%, and that of Jiangsu, Zhejiang, Fujian and Beijing rose 2.2%, 2.5%, 6.3% and 2.9% respectively, which were all lower than the national growth rate of exports.
C, Import and exports by general trade grew steady. The exports and imports of China'by general trade from January to August this year was US$ 1.32075 billion, up by 6.2%. Among that, exports amounted to US$ 638.17 billion, up by 7.7%; imports registered US$ 682.58 billion, up by 4.9%. The exports and imports of China's processing trade was US$ 865.71 billion, with an increase of 2.3%, among that, exports registered US$556.64 billion, up by3.5% while imports amounted to US$309.07 billion, up by 0.4%.
D, Exports of mechanic and electronic products grew steady. Exports of mechanic and electronic products from January to August registered US$748.84 billion, up by 8.3%., 1.2 percentage points higher than that of the total exports. Among then, exports of electrical and electronic products was US$299.95 billion, up by6.1%, mechanical equipment was US$243.89 billion, up by 7.2%. At the same time, export of textile, clothing, furniture, shoes, luggage, plastic products, and toys rose only 5.9%.
E, Import of minerals increased in volume but dropped in price. Import of iron ore from January to August was 490 million ton. The average import price was dropped by 16.6%. Import of soybean was 39.34 million, with an increase of 17.4%, and the average import price was dropped by 1.4%. Import of plastics in primary forms was 15.42 million ton, up by 2.3%. The average price was dropped by 5.5%. In addition, import of mechanical and electrical products was US$ 501.03 billion, up by 1.7%, of which automobiles amounted to 819 thousand, with an increase of 29.1%.
III. Foreign investment
From January to August, 15,777 foreign-invested enterprises were newly established in non-financial sectors in China, down by 12.38% year on year; actualized FDI reached US$ 74.994 billion, down by 3.40% year on year. In August, 2,100 foreign-invested enterprises were newly set up in China, down by 12.72% year on year; actualized FDI amounted to US$8.326 billion, down by 1.43% year on year. At the end of August 2012, 754,130 foreign-invested enterprises were approved nationwide on an accumulative basis with actualized FDI of US$1.242183 trillion. The features of foreign investment from January to August are as follows:
1. Actualized FDI in service sector increased with real estate factor deducted. From January to August of 2012, actualized FDI in manufacturing sector reached US$33.738 billion, down by 6.66% year on year, accounting for 44.98% of the total national amount. The figures in service sector, US$35 billion, down by 1.85% of the total amount, taking up 46.67% of the total national amount. In service sector, foreign investment in real estate registered US$15.266 billion, down by 9.89% year on year, and after deducting the factor of the decline of real estate, actualized FDI in service sector rose by 5.31% year on year. With the boosting of China's domestic demands and consumption, retail sales rose rapidly with the growth rate of 9.76%. Actualized FDI in agriculture, forestry, animal husbandry, and fishery sectors amounted to US$1.093 billion, down by 14.57% year on year, accounting for 1.5% of the total national amount.
2. FDI in the central China maintained a rapid increase. From January to August, actualized FDI in the central China reached US$6.254 billion, up by 12.3% year on year, accounting for 8.34% of the total national amount, higher than before; the figures in the eastern China, US$63.634 billion, down by 4.1% year on year, accounting for 84.85% of the total national actualized FDI; in the western China, US$5.106 billion, down by 11.0% year on year, taking up 6.81% of the total national amount.
3. Investments from several European countries kept growing. Actualized FDI from the E.U. 27 countries declined by 4.1% year on year from January to August, among which, investments from Germany, Netherlands and France rose with the growth rates of 27.27%, 3.30% and 14.78% respectively. Investment from the U.S. dropped by 2.85% year on year from January to August and that from ten countries/regions in Asia (Hong Kong, Macao, Taiwan, Japan, the Philippines, Thailand, Malaysia, Singapore, Indonesia and South Korea) also decreased by 5% year on year in the same period. Among that, investment from Hong Kong dropped by 8.52% and that from Japan only rose by 16.2%, obviously much lower compared with the growth rate of 50% in 2011 (the above data concerning countries and regions includes the investment to China through free ports).
IV. Investment and economic cooperation overseas
1. Direct investment overseas. From January to August, Chinese investors had directly invested in 2,708 overseas companies in 119 countries and regions, and total direct investments in non-financial sectors reached US$47.68 billion, up by 39.4% year on year. Investments in Hong Kong, ASEAN, the U.S. and Russia achieved double-digit growth of 48.2%, 40.5%, 18.2% and 15.8% respectively; investment in the EU, US$1.18 billion, down by 2.5% over the same period of last year. Direct investments in Australia and Japan were down by 43% and 11.1% respectively.
2. Contracted projects overseas. From January to August, the accomplished turnover of China's contracted projects overseas amounted to US$68.46 billion, up by 16.2% year on year, and value of newly-signed contracts was US$83.84 billion, down by 0.4% year on year. In August, the accomplished turnover, US$9.63 billion, up by 13.56% year on year.
By the end of August of 2012, the contract value of the projects overseas reached US$925.5 billion on an accumulative basis with the accomplished turnover of US$607.5 billion.
3. Labor service cooperation overseas. From January to August, all kinds of laborers sent abroad reached 282 thousand, with an increase of six thousand over the same period of last year. Among that, laborers sent abroad for contracted projects reached 144 thousand and that for labor cooperation projects numbered 138 thousand. By the end of August, all laborers sent overseas totaled 859 thousand, an increase of 70 thousand year on year.
V. Overseas exchanges on intellectual property rights in 2012
Overseas exchanges on intellectual property rights in 2012 will be held in three cities of the U.S., Washington D.C., Salt Lake City and Los Angeles, and one city of the E.U., Brussels, in the middle or late September, among which, the exchanges in the U.S. will be held from September 19th to 26th, and Chong Quan, Deputy China International Trade Representative, will head a Chinese government delegation composed of representatives from the Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Commerce, the State Council Legislative Affairs Office, Ministry of Public Security, Ministry of Culture, General Administration of Customs, State Administration of Industry and Commerce, Copyright Office and Intellectual Property Right Office etc. to participate in relevant activities in the U.S. China also organized a delegation of industry representatives from nine enterprises including Tencent, Alibaba, ZTE, Baidu and Taobao to participate in the exchanges.
The exchanges this time mainly include China-US IPR Cooperation Forum, China-US IPR Roundtable, China-US Internet IPR Roundtable and the Dialogue between Governments and Enterprises. During the exchanges, Deputy Ministerial Meeting 2012 of China-US IPR Work Group will be held. This is another large-scale overseas IPR exchange after 1st China IPR International Cooperation Forum was successfully held by MOFCOM in San Francisco, the US, in last October. Compared with that of last year, the exchanges this year are higher in level, larger in scale, wider in scope, with more Chinese and foreign enterprises participating. We hope that the exchanges this year will further deepen mutual understanding and expand common ground between China and the U.S.in the field of IPR. We also hope that the activities could enhance the interaction between the governments and the enterprises of both countries, and contribute to the stability of China-US trade and economic relations.
VI．Cracking down on infringement and counterfeit and shoddy goods
This year, the member units in various regions were in accordance with the deployment of leading group, continued to carry out intensive ratification on prominent problems, and actively promoted the convergence of administrative law enforcement and criminal justice. Law enforcement was further strengthened.
Administrative law enforcement departments nationwide initiated 189,323 cases of IPR infringement and manufacturing and selling counterfeit and shoddy goods, involving 5.05 billion yuan; transferred 3,970 cases involving suspected crimes to judicial authorities, and destroyed 10,474 dens of the infringement and manufacturing and selling counterfeit and shoddy goods.
Public security authorities nationwide cracked down a total of 27,985 cases and arrested 35,825 suspects, involving 7.35 billion yuan.
Procuratorial authorities nationwide approved the arrest in 4,985 cases, 9,078, 6,136 prosecute cases and 11,141 person involved.
Judicial authorities nationwide accepted and hear 5,765 cases, concluded 4,626 trials with an effective judgment of 6,549 persons.
Phoenix TV: I have two questions. First, the State Council issued a document on foreign trade policy yesterday while some people suggest that besides relative measures, the RMB exchange rate may have the biggest impact over exports, especially when QA3 has been launched. What's your comment on it? Is RMB a factor for the current difficulties of foreign trade? Is there any follow-up measures? The second question is about Sino-Japanese relations, we have noticed that some people are advocating a boycott on Japanese goods because of the dispute over the Diaoyu Islands. Will China impose economic sanctions against Japan? In addition, we have heard that some local governments have suspended industrial cooperation projects with Japan, will the dispute further affect Sino-Japanese economic and trade relations? Thank you.
Shen Danyang: Regarding China's economic and trade relations with Japan, Diaoyu Islands have been China's inherent territory since ancient times. The farce of "purchasing" the Diaoyu Islands in Japan is a serious violation of China's territorial sovereignty, has seriously hurt Chinese people's feelings, and has aroused the strong indignation and resistance of all Chinese people.
Sino-Japanese economic and trade cooperation is in line with the interests of both sides. Japan's farce of illegally "purchasing" the Diaoyu Islands will undoubtedly hurt the development of Sino-Japanese economic and trade relations. This is not what China wants to see. The Japanese side must take full responsibility.
Foreign trade development is faced with a grim situation in 2012, and the State Council has promulgated a series of policies. The executive meeting of the State Council approved eight policy measures on September 12. Now MOFCOM is making efforts to implement these measures, and will release a document on implementation in the near future. We believe these measures will enhance the confidence of foreign trade enterprises, and play a positive role in stabilizing foreign trade development.
As for the RMB exchange rate, some enterprises have expressed they hope that the RMB exchange rate could move in a direction in favor of foreign trade development. However, RMB exchange rate is a complex issue which should be addressed by relevant departments in finance, banking and currency in accordance with market principles.
Xinhua: According to statistics by the Chinese Customs, there was only a slight increase in the total trade volume and the export volume in August, while import volume saw a negative growth. Could you analyze the reasons? And what is your take on the trend of foreign trade for the next few months? Will the so-called "purchase" of the Diaoyu Islands by Japan have some impact on China-Japan-ROK FTA negotiations? Thank you.
Shen Danyang: Exports in August rose by 2.7% year-on-year, though higher than the 1% in July's, this rate is still relatively low. It is mainly caused by the current weak global economic growth, particularly the worsening European debt crisis and the insufficient demand in overseas market. As I mentioned repeatedly, the current foreign trade situation is grim, and we have three big challenges, one is weak external demand, the other two are rising costs of exports and tough trade environment. These are all important factors for the sluggish export growth.
Exports saw negative growth in August, which is the first time since February 2012. There are many reasons, and we consider the following three factors most important: First, China's economic growth has slowed down, with downward pressure for real economies. Import demands for construction and mining machinery, textile machinery and other capital goods declined dramatically, with imports in general trade dropping by 7.5% in August, and if the import decline in January 2012 due to the Spring Festival is not taken into account, the import decline is the first time since September 2009. Second, growth of import in processing trade, which is a leading indicator for export, is weak. In particular, import demand for spare parts kept decreasing, and import in processing trade in August was down by 1.4% year-on-year. Third, the falling prices of bulk commodities had an impact on import growth, with the average import price of key energy and resource products all declining in August. For example, the average price of rubber dropped by 27.6%, iron ore, 25.3%, scrap copper, 22.4%, and paper pulp, 19.3%.
Generally speaking, the world economy is still slowing down, and external demand might be weaker in the coming months than the first eight months. Meanwhile, there are still many unstable and uncertain factors in the trade environment. Therefore, foreign trade is still facing a grim situation. We believe that the eight policies released by the State Council will contribute to the steady growth of foreign trade.
Economic Information Daily: You just mentioned the foreign trade situation and the measures of the State Council on stabilizing foreign trade growth. Will MOFCOM promulgate any follow-up measures and policies to stabilize foreign trade growth, and if yes when? Will the goal of 10% import and export growth for this year be realized?
Shen Danyang: Eight measures on stabilizing growth of foreign trade were proposed in the "Detailed Opinions on the Promotion of Stable Growth of Foreign Trade", which was approved by the executive meeting of the State Council. These eight measures include: First, to accelerate export rebate to ensure accurate and timely tax rebate; Second, to expand the scale of financing and reduce enterprises' cost of financing; Third, to expand the scale and coverage of export credit insurance to support small and medium-sized enterprises to explore international market; Fourth, to improve trade facilitation and reduce the cost of customs clearance; Fifth, to properly handle trade frictions and safeguard the legitimate rights and interests of export enterprises; Sixth, to expand imports and promote trade balance; Seventh, to optimize the layout of international market for foreign trade, and support enterprises in their efforts to explore emerging markets; Eighth, to optimize domestic regional distribution of foreign trade, and expand opening up in Central and Western China. The eight measures were divided into 13 detailed measures, and an official document on these policy measures will be issued in recent weeks, and the specific implementation rules will be jointly released by MOFCOM and relevant departments before the National Day.
These eight measures are well-targeted as they are based on extensive researches by relevant departments, suggestions of enterprises and numerous discussions. We believe they will improve the business environment and financing conditions of foreign trade enterprises, and help enterprises to reduce transaction costs, improve efficiency and ease pressure. We hope the foreign trade companies could restore confidence and brave the difficulties. Although there are many challenges, we shall work hard to achieve the objectives set in the beginning of the year.
Japan Economic Journal: Media reported that in the recent protests, some illegal actions of smashing, looting and burning Japanese enterprises in China occurred. Chinese citizens have the right to express themselves and refuse to buy Japanese products, which I can also totally understand as Japanese. However, the infringement of others' property with the excuse of patriotism should not be allowed. I would like to ask if the Chinese government would consider compensating for the loss of Japanese enterprises in China.
Shen Danyang: About the stance of the Chinese government toward China-Japan trade and economic relations, I have explained clearly just now. As to the media reports about some Japanese-funded enterprises being attacked recently, MOFCOM has also noticed, and is collecting further information. I want to make three points here.
First, MOFCOM firmly supports legal and rational patriotic actions, and resolutely opposes any illegal conducts of smashing, looting and burning.
Second, China is a country based on rule of law, and the legal rights and interests of foreign-invested enterprises are protected by Chinese laws.
Third, we believe most people can express their requests in a calm, rational and legal way. If foreign-invested enterprises encounter illegal conducts, they should immediately report to related departments including public security organs and commerce departments.
CNS: I have two questions about PV industry. Currently, as MOFCOM has sent a vice minister and a delegation to Europe to negotiate the anti-dumping case of PV cells, how is it going? In addition, on 15th this month, India declared to receive a petition for anti-dumping investigation into China's solar cells. Chinese experts appeal to the government for immediate actions to avoid such events from happening one after another. How does MOFCOM look at it?
Shen Danyang: China-EU trade friction in PV industry bears on the export interests of Chinese enterprises and a large amount of jobs, so MOFCOM attaches great importance to it. Deputy China International Trade Representative Chong Quan headed a delegation to negotiate with Germany, France and EU on anti-dumping case of PV cells. The delegation has achieved some positive results. On 17th, German Chancellor Angela Merkel reiterated the position she stated in her previous visit to China, that she hopes to address the issue through political dialogues, and that she has heard from the German enterprises that they have been prepared for such dialogues. Luc Rousseau, Director General for Competitiveness, Industry and Services of the Ministry for Economy and Industry of France, said that France has always opposed trade protectionism, and advocates solving trade disputes by dialogues and collaboration first. Mr. Jean-Luc Demarty, Director-General, Directorate-General for Trade of the European Commission, said that in the process of investigation, the EU would like to conduct negotiations with China and discuss the solutions for this case based on WTO rules and EU legal framework. All these positive attitudes have laid foundation for the two sides to solve the problems through negotiations under the WTO rules in the next stage. We believe that with the joint efforts of the two sides, we can solve this dispute and settle frictions through flexible measures.
We learnt that the Anti-dumping Bureau of the Ministry of Commerce and Industry of India has received a petition for anti-dumping investigation on solar cells from China and other countries and regions. MOFCOM is highly concerned about it. Solar power is a clean and renewable energy, that's why both the Chinese and the Indian government strongly support the industry. In the beginning of this year, the solar energy industry of the two nations carried out negotiations in New Delhi, and reached a preliminary consensus on technological cooperation. If India insists on anti-dumping investigation against China's solar cells, the existing sound cooperation between China and India in new energy will be undermined, so will the interests of India's industry. Therefore, we hope the solar cell industry of the two nations can continue the dialogues and cooperation, and solve the trade friction through negotiations.
HK Wenhui News: Media reported Chinese enterprises started a surge of mergers and acquisitions in Europe and the US this year, with value of shares and other acquisitions reaching US$23.7 billion, three times that of the same period last year. Do you think it is another peak of M&A by Chinese enterprises overseas? Thank you.
Shen Danyang: With the implementation of China's strategy of "going global", China's outward investment in recent years increased significantly. We can say it is a leap-forward development, but not a peak.
The outward investment growth from January to August was extraordinary fast, about which I have shared statistics with you just now. I quote some figures again. China's accumulated non-financial direct investment from January to August was US$47.68 billion, up by 39.4% year on year, of which equity investments and other investments was US$38.08 billion, accounting for nearly 80%. According to statistics by MOFCOM, outbound investment in the form of mergers and acquisitions by domestic investors was US$13.2 billion, accounting for 28.7% of the total outbound investment. Investment in the form of M&A has been growing fast, but not as fast as three times like you just mentioned. Outbound investment is an important part of the opening up policy in the new era. We believe that with the implementation of the strategy of "going global", China's outward investment will maintain fast and healthy development.
The Beijing News: I have a question about rectifying illegal collection of charges by big retailers. As we know, the two festivals are approaching, but recently suppliers reported some retailers have changed their charging modes, and transformed the previous illegal charges into legitimate charges. What is MOFCOM's opinion about this issue? Will the Ministry take any precautions against this practice?
Shen Danyang: As to the illegal charges by some retailers, MOFCOM, NDRC, SAIC, the State Council Office for Rectifying Malpractices and other departments, made joint plans and conducted a nationwide crackdown of the illegal actions. Through this crackdown, we found many cases of illegal charges, and the 76 big retailers targeted in the crackdown all have such problems, involving a total of 280 million yuan. Related law enforcement organs are dealing with the problems, and the involved enterprises are under rectification. Through such rectification, we hope related enterprises can increase awareness of this issue. Most of the retail enterprises have realized the importance of establishing harmonious relations with the suppliers, and have been trying to improve their business model and relations with suppliers. We hold the view that it is not appropriate for big stores to bully clients or major clients to bully stores.
Some companies are removing illegal items, changing the terms of the contract, and establishing development fund or support programs for small and medium-sized suppliers. The relationship between retailers and supplier will transform gradually from a zero-sum game to long-term and win-win cooperation. At the same time, MOFCOM has also noticed that one crackdown cannot wipe out all violations. Some companies might continue to collect illegal charges under a different excuse in the hope that they could get lucky and escape punishment. Any fee without corresponding service is against regulation. Based on complaints by suppliers, MOFCOM has required relevant departments to investigate and verify. If the case if proved, it will be dealt with severely. Of course, if there are any more such problems, MOFCOM would encourage the suppliers to report timely.
Asahi Shimbun: China, Japan and South Korea FTA negotiations will be held in Seoul at the end of September. In view of the current China-Japan relations, will the negotiations continue? Or is it already canceled? What impact the deteriorating Sino-Japanese relations will bring to the economic integration of Asian countries?
Shen Danyang: the farce of Japan illegally "purchasing" the Diaoyu islands will inevitably exert a negative impact on Sino-Japanese economic and trade relations. MOFCOM is still thinking about whether to continue the negotiations and exchanges you just mentioned, but the exchanges will definitely be affected.
CCTV: You mentioned that U.S. investment in China from January to August this year saw a year-on-year decline of 2.85%. What is the reason? What measures will MOFCOM take?
Shen Danyang: U.S. investment in China for the whole 2012 is not likely to decline. The difference in the amount of investment projects in different months will affect the statistics. For example, there is a major U.S. investment project in the first five months, so the statistical figures indicate positive growth. However, there is no big project in the past few months, so the statistics show negative growth. This situation may change by the end of this year, and MOFCOM believes that the U.S. investment in China will continue to grow.
HKSTV: Recently, EU has initiated an investigation on photovoltaic products, and the U.S. government announced taking the case of auto parts subsidies to WTO. The Chinese government believes all this actions are trade protectionist measures. You just said that the State Council promulgated eight measures, including properly dealing with trade frictions and safeguarding the interests of export enterprises. Is it a countermeasure against the trade protectionist measures?
Shen Danyang: I have to clarify that China respects the rules of the WTO and opposes trade protectionism. China is not engaged in trade protectionism, and also hopes that all trading partners, including the United States, are able to be comply with WTO rules, and jointly safeguard the multilateral trading system.
U.S. President Barack Obama announced on September 17 taking China's automobile related subsidies to the WTO. At the same day, China also appeals to WTO on GPX bill. Many people are concerned that these two cases happened in the same day. I would like to inform you the numbers of these two cases: China requested on September 17 for consultations under the WTO dispute settlement mechanism on the he U.S. Tariff Act Amendments Act (GPX Act) violating WTO rules. The number of this case is DS449. After that, the United States filed a dispute consultation request on the case of the so-called subsidy to auto and auto parts export base. The case number was DS450. The order of two cases could reveal the political motives of the United States.
The WTO dispute settlement mechanism is a normal way for members to properly resolve trade disputes. I would like to reiterate: China respects the rules of the WTO, opposes trade protectionism, and hopes that all the trading partners, including the United States, could comply with WTO rules and jointly safeguard the multilateral trading system.
Shen Danyang: That concludes the press conference today, thank you!
Welcome to the press conference of today. My name is Shen Danyang, spokesman of the Ministry of Commerce. I am very glad to meet you all again and make a briefing on China's business performance in January - August this year, and answer your questions.
I. Performance in Domestic Market
According to NBS statistics, retail sales of consumer goods in August this year amounted to 1.6659 trillion Yuan. The nominal growth was 13.2%, 0.1 percentage point faster compared with that of the previous month. The actual growth was 12.1%, price fluctuation readjusted. Retail sales of consumer goods from January to August this year amounted to 13.1195 trillion. The nominal growth was 14.1%, and the actual growth was 11.4%, price fluctuation readjusted, 0.1 percentage point faster compared with that of the previous month. The growth of consumer market in August slowed down and steady. The main features are as follows:
A, Marketing by large and medium - sized circulation enterprises rose slightly. According to MOFCOM, sales value of 3,000 key retailers in August was up by 8.5%, 0.7 percentage point faster as compared with that of the previous month. Retail sales of consumer goods by enterprises above designated size rose 13.1%, 0.1 percentage point higher as compared with that of the previous month.
B, Marketing of foodstuff and clothing rebounded slightly. According to MOFCOM, sales value of foodstuff by 3,000 key retailers in August was up by 12.1%, and that of clothing rose 10.6%. The growth rate was 0.7 and 2.1 percentage points higher as compared with that of the previous month. Among that, growth rate of food, clothing, shoes and hats was 1.3, 1.8 and 3.3 percentage points faster as compared with that of the previous month.
C, Marketing of automobiles, home-appliances and gold, silver and jewelry remained steady. Affected by the subsidy policy on energy saving, marketing of automobiles and home-appliances remained steady. Sales of passenger vehicles in August saw a year-on-year increase of 8.8%, up by 11.3%, 0.6 percentage point faster as compared with that of the previous month. According to MOFCOM, sales value of home-appliances and audio-visual equipment by 3,000 key retailers in August was up by 0.8% and it was a positive growth after April. Driven by rising international gold prices, domestic demand for gold and silver jewelry increased. Sales value of gold, silver and jewelry of 3,000 key retailers rose 9.2%, up by 1.6 percentage point as compared with that of the previous month.
D, Marketing of cultural l and physical culture commodities slowed down. According to MOFCOM, sales value of cultural l and physical culture commodities by 3,000 key retailers in August was down by 1.4% and 3.4% respectively, 0.8 and 1.0 percentage points lower as compared with that of the previous month.
E, Price of farm produce rebounded slightly. Consumer price in August was up by 2%, 0.2 percentage points compared with that of the previous month and 4.2 percentage points slower year-on-year. According to MOFCOM, prices of vegetables, eggs, poultry and pork began to rise, with a year-on-year increase of 13.3%, 4.0%, 0.9% and 0.2%. Prices of rice and edible oil rose steadily, of which small package of rice and small package of flour rose 0.7% and 0.2% year-on-year; soybean oil, peanut oil and rapeseed oil rose 0.8%, 2.2% and 1.2% year-on-year, the growth rate was 0.5, 0.3 and 0.2 percentage point higher as compared with that of the previous month.
II. Foreign Trade
According to Customs statistics, China's imports and exports from January to August this year amounted to US$ 2.49762 trillion, with a year on year increase of 6.2%. Among that, exports amounted to US$1.30911 billion, up by 7.1%; and imports amounted to US$ 1.18851 billion, up by 5.1%. Trade surplus was US$120.6 billion, rose 31.8%. The main features of foreign trade are as follows:
A, Trade with emerging market remain steady. From January to August, bilateral trade value of China-ASEAN rose 7.7%, China-Russia and China-Brazil was up by 14.9% and 6.3.% respectively, and China-U.S. saw an increase of 9% while that of China-EU and China-Japan dropped 1.9% and 1.4% respectively.
B, Export by the central and western China was fast up. From January to August, growth rate of export by Chongqing was1.7 times and that of Henan, Sichuan and Jiangxi was up by63.4%, 47.8% and 43.3% respectively. The growth rate of export of Guangdong rose 5.8%, and that of Jiangsu, Zhejiang, Fujian and Beijing rose 2.2%, 2.5%, 6.3% and 2.9% respectively, which were all lower than the national growth rate of exports.
C, Import and exports by general trade grew steady. The exports and imports of China'by general trade from January to August this year was US$ 1.32075 billion, up by 6.2%. Among that, exports amounted to US$ 638.17 billion, up by 7.7%; imports registered US$ 682.58 billion, up by 4.9%. The exports and imports of China's processing trade was US$ 865.71 billion, with an increase of 2.3%, among that, exports registered US$556.64 billion, up by3.5% while imports amounted to US$309.07 billion, up by 0.4%.
D, Exports of mechanic and electronic products grew steady. Exports of mechanic and electronic products from January to August registered US$748.84 billion, up by 8.3%., 1.2 percentage points higher than that of the total exports. Among then, exports of electrical and electronic products was US$299.95 billion, up by6.1%, mechanical equipment was US$243.89 billion, up by 7.2%. At the same time, export of textile, clothing, furniture, shoes, luggage, plastic products, and toys rose only 5.9%.
E, Import of minerals increased in volume but dropped in price. Import of iron ore from January to August was 490 million ton. The average import price was dropped by 16.6%. Import of soybean was 39.34 million, with an increase of 17.4%, and the average import price was dropped by 1.4%. Import of plastics in primary forms was 15.42 million ton, up by 2.3%. The average price was dropped by 5.5%. In addition, import of mechanical and electrical products was US$ 501.03 billion, up by 1.7%, of which automobiles amounted to 819 thousand, with an increase of 29.1%.
III. Foreign investment
From January to August, 15,777 foreign-invested enterprises were newly established in non-financial sectors in China, down by 12.38% year on year; actualized FDI reached US$ 74.994 billion, down by 3.40% year on year. In August, 2,100 foreign-invested enterprises were newly set up in China, down by 12.72% year on year; actualized FDI amounted to US$8.326 billion, down by 1.43% year on year. At the end of August 2012, 754,130 foreign-invested enterprises were approved nationwide on an accumulative basis with actualized FDI of US$1.242183 trillion. The features of foreign investment from January to August are as follows:
1. Actualized FDI in service sector increased with real estate factor deducted. From January to August of 2012, actualized FDI in manufacturing sector reached US$33.738 billion, down by 6.66% year on year, accounting for 44.98% of the total national amount. The figures in service sector, US$35 billion, down by 1.85% of the total amount, taking up 46.67% of the total national amount. In service sector, foreign investment in real estate registered US$15.266 billion, down by 9.89% year on year, and after deducting the factor of the decline of real estate, actualized FDI in service sector rose by 5.31% year on year. With the boosting of China's domestic demands and consumption, retail sales rose rapidly with the growth rate of 9.76%. Actualized FDI in agriculture, forestry, animal husbandry, and fishery sectors amounted to US$1.093 billion, down by 14.57% year on year, accounting for 1.5% of the total national amount.
2. FDI in the central China maintained a rapid increase. From January to August, actualized FDI in the central China reached US$6.254 billion, up by 12.3% year on year, accounting for 8.34% of the total national amount, higher than before; the figures in the eastern China, US$63.634 billion, down by 4.1% year on year, accounting for 84.85% of the total national actualized FDI; in the western China, US$5.106 billion, down by 11.0% year on year, taking up 6.81% of the total national amount.
3. Investments from several European countries kept growing. Actualized FDI from the E.U. 27 countries declined by 4.1% year on year from January to August, among which, investments from Germany, Netherlands and France rose with the growth rates of 27.27%, 3.30% and 14.78% respectively. Investment from the U.S. dropped by 2.85% year on year from January to August and that from ten countries/regions in Asia (Hong Kong, Macao, Taiwan, Japan, the Philippines, Thailand, Malaysia, Singapore, Indonesia and South Korea) also decreased by 5% year on year in the same period. Among that, investment from Hong Kong dropped by 8.52% and that from Japan only rose by 16.2%, obviously much lower compared with the growth rate of 50% in 2011 (the above data concerning countries and regions includes the investment to China through free ports).
IV. Investment and economic cooperation overseas
1. Direct investment overseas. From January to August, Chinese investors had directly invested in 2,708 overseas companies in 119 countries and regions, and total direct investments in non-financial sectors reached US$47.68 billion, up by 39.4% year on year. Investments in Hong Kong, ASEAN, the U.S. and Russia achieved double-digit growth of 48.2%, 40.5%, 18.2% and 15.8% respectively; investment in the EU, US$1.18 billion, down by 2.5% over the same period of last year. Direct investments in Australia and Japan were down by 43% and 11.1% respectively.
2. Contracted projects overseas. From January to August, the accomplished turnover of China's contracted projects overseas amounted to US$68.46 billion, up by 16.2% year on year, and value of newly-signed contracts was US$83.84 billion, down by 0.4% year on year. In August, the accomplished turnover, US$9.63 billion, up by 13.56% year on year.
By the end of August of 2012, the contract value of the projects overseas reached US$925.5 billion on an accumulative basis with the accomplished turnover of US$607.5 billion.
3. Labor service cooperation overseas. From January to August, all kinds of laborers sent abroad reached 282 thousand, with an increase of six thousand over the same period of last year. Among that, laborers sent abroad for contracted projects reached 144 thousand and that for labor cooperation projects numbered 138 thousand. By the end of August, all laborers sent overseas totaled 859 thousand, an increase of 70 thousand year on year.
V. Overseas exchanges on intellectual property rights in 2012
Overseas exchanges on intellectual property rights in 2012 will be held in three cities of the U.S., Washington D.C., Salt Lake City and Los Angeles, and one city of the E.U., Brussels, in the middle or late September, among which, the exchanges in the U.S. will be held from September 19th to 26th, and Chong Quan, Deputy China International Trade Representative, will head a Chinese government delegation composed of representatives from the Supreme People's Court, the Supreme People's Procuratorate, the Ministry of Commerce, the State Council Legislative Affairs Office, Ministry of Public Security, Ministry of Culture, General Administration of Customs, State Administration of Industry and Commerce, Copyright Office and Intellectual Property Right Office etc. to participate in relevant activities in the U.S. China also organized a delegation of industry representatives from nine enterprises including Tencent, Alibaba, ZTE, Baidu and Taobao to participate in the exchanges.
The exchanges this time mainly include China-US IPR Cooperation Forum, China-US IPR Roundtable, China-US Internet IPR Roundtable and the Dialogue between Governments and Enterprises. During the exchanges, Deputy Ministerial Meeting 2012 of China-US IPR Work Group will be held. This is another large-scale overseas IPR exchange after 1st China IPR International Cooperation Forum was successfully held by MOFCOM in San Francisco, the US, in last October. Compared with that of last year, the exchanges this year are higher in level, larger in scale, wider in scope, with more Chinese and foreign enterprises participating. We hope that the exchanges this year will further deepen mutual understanding and expand common ground between China and the U.S.in the field of IPR. We also hope that the activities could enhance the interaction between the governments and the enterprises of both countries, and contribute to the stability of China-US trade and economic relations.
VI．Cracking down on infringement and counterfeit and shoddy goods
This year, the member units in various regions were in accordance with the deployment of leading group, continued to carry out intensive ratification on prominent problems, and actively promoted the convergence of administrative law enforcement and criminal justice. Law enforcement was further strengthened.
Administrative law enforcement departments nationwide initiated 189,323 cases of IPR infringement and manufacturing and selling counterfeit and shoddy goods, involving 5.05 billion yuan; transferred 3,970 cases involving suspected crimes to judicial authorities, and destroyed 10,474 dens of the infringement and manufacturing and selling counterfeit and shoddy goods.
Public security authorities nationwide cracked down a total of 27,985 cases and arrested 35,825 suspects, involving 7.35 billion yuan.
Procuratorial authorities nationwide approved the arrest in 4,985 cases, 9,078, 6,136 prosecute cases and 11,141 person involved.
Judicial authorities nationwide accepted and hear 5,765 cases, concluded 4,626 trials with an effective judgment of 6,549 persons.
Phoenix TV: I have two questions. First, the State Council issued a document on foreign trade policy yesterday while some people suggest that besides relative measures, the RMB exchange rate may have the biggest impact over exports, especially when QA3 has been launched. What's your comment on it? Is RMB a factor for the current difficulties of foreign trade? Is there any follow-up measures? The second question is about Sino-Japanese relations, we have noticed that some people are advocating a boycott on Japanese goods because of the dispute over the Diaoyu Islands. Will China impose economic sanctions against Japan? In addition, we have heard that some local governments have suspended industrial cooperation projects with Japan, will the dispute further affect Sino-Japanese economic and trade relations? Thank you.
Shen Danyang: Regarding China's economic and trade relations with Japan, Diaoyu Islands have been China's inherent territory since ancient times. The farce of "purchasing" the Diaoyu Islands in Japan is a serious violation of China's territorial sovereignty, has seriously hurt Chinese people's feelings, and has aroused the strong indignation and resistance of all Chinese people.
Sino-Japanese economic and trade cooperation is in line with the interests of both sides. Japan's farce of illegally "purchasing" the Diaoyu Islands will undoubtedly hurt the development of Sino-Japanese economic and trade relations. This is not what China wants to see. The Japanese side must take full responsibility.
Foreign trade development is faced with a grim situation in 2012, and the State Council has promulgated a series of policies. The executive meeting of the State Council approved eight policy measures on September 12. Now MOFCOM is making efforts to implement these measures, and will release a document on implementation in the near future. We believe these measures will enhance the confidence of foreign trade enterprises, and play a positive role in stabilizing foreign trade development.
As for the RMB exchange rate, some enterprises have expressed they hope that the RMB exchange rate could move in a direction in favor of foreign trade development. However, RMB exchange rate is a complex issue which should be addressed by relevant departments in finance, banking and currency in accordance with market principles.
Xinhua: According to statistics by the Chinese Customs, there was only a slight increase in the total trade volume and the export volume in August, while import volume saw a negative growth. Could you analyze the reasons? And what is your take on the trend of foreign trade for the next few months? Will the so-called "purchase" of the Diaoyu Islands by Japan have some impact on China-Japan-ROK FTA negotiations? Thank you.
Shen Danyang: Exports in August rose by 2.7% year-on-year, though higher than the 1% in July's, this rate is still relatively low. It is mainly caused by the current weak global economic growth, particularly the worsening European debt crisis and the insufficient demand in overseas market. As I mentioned repeatedly, the current foreign trade situation is grim, and we have three big challenges, one is weak external demand, the other two are rising costs of exports and tough trade environment. These are all important factors for the sluggish export growth.
Exports saw negative growth in August, which is the first time since February 2012. There are many reasons, and we consider the following three factors most important: First, China's economic growth has slowed down, with downward pressure for real economies. Import demands for construction and mining machinery, textile machinery and other capital goods declined dramatically, with imports in general trade dropping by 7.5% in August, and if the import decline in January 2012 due to the Spring Festival is not taken into account, the import decline is the first time since September 2009. Second, growth of import in processing trade, which is a leading indicator for export, is weak. In particular, import demand for spare parts kept decreasing, and import in processing trade in August was down by 1.4% year-on-year. Third, the falling prices of bulk commodities had an impact on import growth, with the average import price of key energy and resource products all declining in August. For example, the average price of rubber dropped by 27.6%, iron ore, 25.3%, scrap copper, 22.4%, and paper pulp, 19.3%.
Generally speaking, the world economy is still slowing down, and external demand might be weaker in the coming months than the first eight months. Meanwhile, there are still many unstable and uncertain factors in the trade environment. Therefore, foreign trade is still facing a grim situation. We believe that the eight policies released by the State Council will contribute to the steady growth of foreign trade.
Economic Information Daily: You just mentioned the foreign trade situation and the measures of the State Council on stabilizing foreign trade growth. Will MOFCOM promulgate any follow-up measures and policies to stabilize foreign trade growth, and if yes when? Will the goal of 10% import and export growth for this year be realized?
Shen Danyang: Eight measures on stabilizing growth of foreign trade were proposed in the "Detailed Opinions on the Promotion of Stable Growth of Foreign Trade", which was approved by the executive meeting of the State Council. These eight measures include: First, to accelerate export rebate to ensure accurate and timely tax rebate; Second, to expand the scale of financing and reduce enterprises' cost of financing; Third, to expand the scale and coverage of export credit insurance to support small and medium-sized enterprises to explore international market; Fourth, to improve trade facilitation and reduce the cost of customs clearance; Fifth, to properly handle trade frictions and safeguard the legitimate rights and interests of export enterprises; Sixth, to expand imports and promote trade balance; Seventh, to optimize the layout of international market for foreign trade, and support enterprises in their efforts to explore emerging markets; Eighth, to optimize domestic regional distribution of foreign trade, and expand opening up in Central and Western China. The eight measures were divided into 13 detailed measures, and an official document on these policy measures will be issued in recent weeks, and the specific implementation rules will be jointly released by MOFCOM and relevant departments before the National Day.
These eight measures are well-targeted as they are based on extensive researches by relevant departments, suggestions of enterprises and numerous discussions. We believe they will improve the business environment and financing conditions of foreign trade enterprises, and help enterprises to reduce transaction costs, improve efficiency and ease pressure. We hope the foreign trade companies could restore confidence and brave the difficulties. Although there are many challenges, we shall work hard to achieve the objectives set in the beginning of the year.
Japan Economic Journal: Media reported that in the recent protests, some illegal actions of smashing, looting and burning Japanese enterprises in China occurred. Chinese citizens have the right to express themselves and refuse to buy Japanese products, which I can also totally understand as Japanese. However, the infringement of others' property with the excuse of patriotism should not be allowed. I would like to ask if the Chinese government would consider compensating for the loss of Japanese enterprises in China.
Shen Danyang: About the stance of the Chinese government toward China-Japan trade and economic relations, I have explained clearly just now. As to the media reports about some Japanese-funded enterprises being attacked recently, MOFCOM has also noticed, and is collecting further information. I want to make three points here.
First, MOFCOM firmly supports legal and rational patriotic actions, and resolutely opposes any illegal conducts of smashing, looting and burning.
Second, China is a country based on rule of law, and the legal rights and interests of foreign-invested enterprises are protected by Chinese laws.
Third, we believe most people can express their requests in a calm, rational and legal way. If foreign-invested enterprises encounter illegal conducts, they should immediately report to related departments including public security organs and commerce departments.
CNS: I have two questions about PV industry. Currently, as MOFCOM has sent a vice minister and a delegation to Europe to negotiate the anti-dumping case of PV cells, how is it going? In addition, on 15th this month, India declared to receive a petition for anti-dumping investigation into China's solar cells. Chinese experts appeal to the government for immediate actions to avoid such events from happening one after another. How does MOFCOM look at it?
Shen Danyang: China-EU trade friction in PV industry bears on the export interests of Chinese enterprises and a large amount of jobs, so MOFCOM attaches great importance to it. Deputy China International Trade Representative Chong Quan headed a delegation to negotiate with Germany, France and EU on anti-dumping case of PV cells. The delegation has achieved some positive results. On 17th, German Chancellor Angela Merkel reiterated the position she stated in her previous visit to China, that she hopes to address the issue through political dialogues, and that she has heard from the German enterprises that they have been prepared for such dialogues. Luc Rousseau, Director General for Competitiveness, Industry and Services of the Ministry for Economy and Industry of France, said that France has always opposed trade protectionism, and advocates solving trade disputes by dialogues and collaboration first. Mr. Jean-Luc Demarty, Director-General, Directorate-General for Trade of the European Commission, said that in the process of investigation, the EU would like to conduct negotiations with China and discuss the solutions for this case based on WTO rules and EU legal framework. All these positive attitudes have laid foundation for the two sides to solve the problems through negotiations under the WTO rules in the next stage. We believe that with the joint efforts of the two sides, we can solve this dispute and settle frictions through flexible measures.
We learnt that the Anti-dumping Bureau of the Ministry of Commerce and Industry of India has received a petition for anti-dumping investigation on solar cells from China and other countries and regions. MOFCOM is highly concerned about it. Solar power is a clean and renewable energy, that's why both the Chinese and the Indian government strongly support the industry. In the beginning of this year, the solar energy industry of the two nations carried out negotiations in New Delhi, and reached a preliminary consensus on technological cooperation. If India insists on anti-dumping investigation against China's solar cells, the existing sound cooperation between China and India in new energy will be undermined, so will the interests of India's industry. Therefore, we hope the solar cell industry of the two nations can continue the dialogues and cooperation, and solve the trade friction through negotiations.
HK Wenhui News: Media reported Chinese enterprises started a surge of mergers and acquisitions in Europe and the US this year, with value of shares and other acquisitions reaching US$23.7 billion, three times that of the same period last year. Do you think it is another peak of M&A by Chinese enterprises overseas? Thank you.
Shen Danyang: With the implementation of China's strategy of "going global", China's outward investment in recent years increased significantly. We can say it is a leap-forward development, but not a peak.
The outward investment growth from January to August was extraordinary fast, about which I have shared statistics with you just now. I quote some figures again. China's accumulated non-financial direct investment from January to August was US$47.68 billion, up by 39.4% year on year, of which equity investments and other investments was US$38.08 billion, accounting for nearly 80%. According to statistics by MOFCOM, outbound investment in the form of mergers and acquisitions by domestic investors was US$13.2 billion, accounting for 28.7% of the total outbound investment. Investment in the form of M&A has been growing fast, but not as fast as three times like you just mentioned. Outbound investment is an important part of the opening up policy in the new era. We believe that with the implementation of the strategy of "going global", China's outward investment will maintain fast and healthy development.
The Beijing News: I have a question about rectifying illegal collection of charges by big retailers. As we know, the two festivals are approaching, but recently suppliers reported some retailers have changed their charging modes, and transformed the previous illegal charges into legitimate charges. What is MOFCOM's opinion about this issue? Will the Ministry take any precautions against this practice?
Shen Danyang: As to the illegal charges by some retailers, MOFCOM, NDRC, SAIC, the State Council Office for Rectifying Malpractices and other departments, made joint plans and conducted a nationwide crackdown of the illegal actions. Through this crackdown, we found many cases of illegal charges, and the 76 big retailers targeted in the crackdown all have such problems, involving a total of 280 million yuan. Related law enforcement organs are dealing with the problems, and the involved enterprises are under rectification. Through such rectification, we hope related enterprises can increase awareness of this issue. Most of the retail enterprises have realized the importance of establishing harmonious relations with the suppliers, and have been trying to improve their business model and relations with suppliers. We hold the view that it is not appropriate for big stores to bully clients or major clients to bully stores.
Some companies are removing illegal items, changing the terms of the contract, and establishing development fund or support programs for small and medium-sized suppliers. The relationship between retailers and supplier will transform gradually from a zero-sum game to long-term and win-win cooperation. At the same time, MOFCOM has also noticed that one crackdown cannot wipe out all violations. Some companies might continue to collect illegal charges under a different excuse in the hope that they could get lucky and escape punishment. Any fee without corresponding service is against regulation. Based on complaints by suppliers, MOFCOM has required relevant departments to investigate and verify. If the case if proved, it will be dealt with severely. Of course, if there are any more such problems, MOFCOM would encourage the suppliers to report timely.
Asahi Shimbun: China, Japan and South Korea FTA negotiations will be held in Seoul at the end of September. In view of the current China-Japan relations, will the negotiations continue? Or is it already canceled? What impact the deteriorating Sino-Japanese relations will bring to the economic integration of Asian countries?
Shen Danyang: the farce of Japan illegally "purchasing" the Diaoyu islands will inevitably exert a negative impact on Sino-Japanese economic and trade relations. MOFCOM is still thinking about whether to continue the negotiations and exchanges you just mentioned, but the exchanges will definitely be affected.
CCTV: You mentioned that U.S. investment in China from January to August this year saw a year-on-year decline of 2.85%. What is the reason? What measures will MOFCOM take?
Shen Danyang: U.S. investment in China for the whole 2012 is not likely to decline. The difference in the amount of investment projects in different months will affect the statistics. For example, there is a major U.S. investment project in the first five months, so the statistical figures indicate positive growth. However, there is no big project in the past few months, so the statistics show negative growth. This situation may change by the end of this year, and MOFCOM believes that the U.S. investment in China will continue to grow.
HKSTV: Recently, EU has initiated an investigation on photovoltaic products, and the U.S. government announced taking the case of auto parts subsidies to WTO. The Chinese government believes all this actions are trade protectionist measures. You just said that the State Council promulgated eight measures, including properly dealing with trade frictions and safeguarding the interests of export enterprises. Is it a countermeasure against the trade protectionist measures?
Shen Danyang: I have to clarify that China respects the rules of the WTO and opposes trade protectionism. China is not engaged in trade protectionism, and also hopes that all trading partners, including the United States, are able to be comply with WTO rules, and jointly safeguard the multilateral trading system.
U.S. President Barack Obama announced on September 17 taking China's automobile related subsidies to the WTO. At the same day, China also appeals to WTO on GPX bill. Many people are concerned that these two cases happened in the same day. I would like to inform you the numbers of these two cases: China requested on September 17 for consultations under the WTO dispute settlement mechanism on the he U.S. Tariff Act Amendments Act (GPX Act) violating WTO rules. The number of this case is DS449. After that, the United States filed a dispute consultation request on the case of the so-called subsidy to auto and auto parts export base. The case number was DS450. The order of two cases could reveal the political motives of the United States.
The WTO dispute settlement mechanism is a normal way for members to properly resolve trade disputes. I would like to reiterate: China respects the rules of the WTO, opposes trade protectionism, and hopes that all the trading partners, including the United States, could comply with WTO rules and jointly safeguard the multilateral trading system.
Shen Danyang: That concludes the press conference today, thank you!
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