Guo Weimin:Ladies and gentlemen, good morning, Welcome to today's State Council Information Office press conference. Domestic and overseas media pay much attention to China's economy and foreign trade, including the construction of circulation, consumption and FTA. Today, we are pleased to invite the Minister of Commerce Mr. Gao Hucheng to attend this press conference, to talk about the situation in this field and to take questions of reporters. I know that there are many foreign reporters, therefore we will provide simultaneous interpretation services at the conference, including the Q & A session. Next, Minister Gao Hucheng, please give us some introductions.

Gao Hucheng: Host and reporter friends, good morning, everybody! I am very pleased to have this opportunity to meet with the news media, in the following day of Chinese Lantern Festival. Firstly, on behalf of the Ministry of Commerce, I would like to express the sincere gratitude to news media, reporter friends, for their long-term concerns, support and timely reports on MOFCOM works, especially in 2015.

Now, combining with the overall development of the business in 2015, I will give brief introductions to everyone and then communicate with reporters.

Gao Hucheng: As you know, in 2015, the domestic and international situation we faced with was extremely complex and severe. We insisted on the keynote determined by the Central Party and the State Council to seek progress in stability, actively adapting to the new normal of economic development, and properly dealt with major risks and challenges. Overall, with the progress in stability, the commerce works keeps the medium-to-high speed of growth and has achieved hard-won fruits with all performance indicators ranking forefront in the world. Commerce development undertakes functions of expanding consumption, foreign trade and international investment. China's import and export trade in goods and export value have ranked the top one in the world since 2013, and the year 2015 is not an exception. The value of online retail sales maintained the first place of the world, the total value in retail sales of consumer goods and the import and export volume in service trade stably ranked the second place in the world, foreign investment has ranked the top one among developing countries for 24 consecutive years and the investment abroad ranked the third one in the world. These achievements can be regarded as a satisfied answer to national economic growth and global economic development. There are several main features:

Gao Hucheng: Firstly, there are many highlights in the growth. In terms of the consumption, China's total value of retail sales in consumer goods has reached RMB 30.1 trillion in 2015, with year-on-year growth of 10.7%, and consumption's contribution to the social and economic growth has reached 66.4%, with an increase of 15.4% over 2014. That is to say, China has successfully achieved the vital transformation of economic development from investment and foreign trade based to domestic demand, especially consumption based. In terms of the import and export, with the double-digit negative growth in global trade last year, the decrease of China fell far below the decrease of our major trading partners and global trade. Our share in global trade is expected to increase by a percentage point from 12.2% to over 13%. In 2015, our global share enhanced the fastest. Last year, Goods trade surplus reached 593 billion US dollars, which played a positive role in safeguarding national financial security. The import and export of service trade has reached 713 billion US dollars, an increase of 14.6%, and has achieved the "double-upgrade" in China's share of global trade and this part's share of China's foreign trade. Here let I add that, in the past, service trade has been always regarded as a short board of China, but this part develops quickly in recent years. The top one in the world service trade is the United States for about 1.06 trillion US dollars last year, accounting for 31% in the total foreign trade; as the second one, China's volume of service trade is 731 billion US dollars, accounting for 18% in the total foreign trade. In terms of international investment, the foreign direct investment in last year, excluding financial class, reached 118.02 billion US dollars, an increase of 14.7%, which remains the rapid growth of consecutive years; in terms of attracting foreign investment, actual use of foreign investment is 126.27 billion US dollars, an increase of 5.6%, and China still ranks the top one among developing countries.

Gao Hucheng: Secondly, we achieved remarkable structure benefits. Domestic distribution structure equips with more outstanding optimization, Chinese online retail sales of physical goods reached RMB 3.2 trillion, an increase of 31.6%. China is the fastest growing and largest-scale nation in online sales of physical goods. This amount accounted for about 11% in the total retail sales of consumer goods, and the new structure is forming, for driving common development between online and offline, spots and futures, wholesale and retail, urban and rural distribution market.

Thirdly, domestic and foreign trade made outstanding contribution to economic growth. It should be said that above-mentioned work made a positive contribution to our steady growth, structure adjustment, benefit for people's livelihood and risk prevention. Facing the very difficult situation, the foreign trade still contributed 18% of the national tax revenue. In 2015, China's economy contributed more than 25% to the growth of global economy. In the context of global trade remaining in the recession, China's export and import in foreign trade is still significantly better than other major economies in the world, and this fact itself exists as an important contribution to the world trade and global economic development.

Gao Hucheng: The commercial work in 2015 can be summarized in three key phrases: the first one is sticking to seeking progress in stability. This concept is mainly to improve the environment for the development of foreign trade, innovate in the development mode of foreign trade and promote the development of service trade and service outsourcing.

The second one is the reform. One is to promote the experiment reform of the pilot FTA, to promote the scope of Shanghai FTA and to set three new pilot FTAs. Two is to drive the institutional innovation in domestic circulation reform. We published views on promoting the modernization of domestic circulation and constructing legalization in business environment. We launched comprehensive pilot reform of domestic circulation in Shanghai and other eight cities. Three is to strengthen market supervision on a large scale. We released a series of decentralization reforms.

Gao Hucheng: The third key words: to deepen the opening-up policy. In 2015, holding the top principle of promoting the construction of "the Belt and Road", we focused on the domestic and international markets, resources and two types of rules, achieving new breakthroughs in improving the opening-up layout. One is that opening-up achieved new breakthroughs. With the help of relevant departments, we published the revised "Catalogue for the Guidance of Foreign Investment Industries" in 2015 edition and launched comprehensive pilot points for expanding the opening-up of the service sector in Beijing. Two is that the regional opening gained new progress. We implemented innovation development projects in national economic development zone and supported the construction of national economic development zone in Jingjinji, the Yangtze River economic belt and other regions. Three is that multilateral and bilateral regional cooperation presented new highlights. As you know, we and ASEAN signed the upgrade Protocol of the FTA, and negotiations on "Regional Comprehensive Economic Partnership (RCEP)” have gained substantial progress. In the East Asian leaders meeting, participants unanimously determined to strive for ending RCEP negotiations in 2016. At present, China has signed trade agreements with 22 trade partners, covering 38% of China's foreign trade volume. We promote to reach a large number of agreements and consensus on the tenth meeting of trade ministers of the WTO. Sino-US and Sino-EU bilateral investment agreement negotiations have also made positive progress. The Mainland of China signed the CEPA service trade agreement with Hong Kong and Macao.

The above is a basic inventory of main works of the Ministry of Commerce in 2015. Now, reporter friends, please ask questions, and I would like to communicate with everyone.

Guo Weimin: Minister Gao Hucheng, thanks! Next, it is the Q&A session. Please make clear your news agency, and we will interpret your questions.

A CCTV reporter: Last year, in the situation of weak investment and exports, China's consumption alone showed an increase of 11.2% in the national consumer market during the Spring Festival this year, particularly in public restaurants, film box office. However, at the same time, Chinese tourists bought goods abroad in panic. How does the your comment on it? How is the situation of China's consumption in 2016? What measures will the MOFCOM take to further promote consumption? Thank you.

Gao Hucheng: Thanks for your question. In the above introduction about major works of MOFCOM in 2015, I talked about the function of consumption for economic growth in last year. In 2015, consumption's contribution rate to economic growth reached 66.4%, becoming the first driver of economic growth. The vigorous consumption exists for many reasons. Firstly, we can see that since the 18th National Congress, the growth of China's urban and rural residents' income has been higher than GDP growth for three consecutive years, and consumption capability continues to increase. Secondly, our social security system continues to improve, and this is a gradual process. Health insurance, endowment insurance and other systems are moving forward and become more and more perfect, with the more sound security system, which make people have money to consume. Thirdly, consumption conditions continue to improve, the supply-side conformed to the market in recent years. For example, new growth points of health consumption, tourism consumption and entertainment consumption are based on this condition. Therefore, the consumption growth in 2015 is a continuous growth which is based on 2014. I personally believe that this trend will continue in 2016, which is also a universal judgment from relevant fields.

Gao Hucheng: In 2015, there is a very important factor which needs high attention from you. It is the part of public entrepreneurship and innovation, as well as a high employment rate. China completed the goal of 11 million new jobs in the September of last year. Employment means income, while income represents consumption. This is the basis of consumption growth. We also have to notice another phenomenon. An upper middle class is being formed in China currently. Someone said this class includes 90 million people, and someone said it should be more than 100 million people. There may have different calculating standards and different levels of consumption in each city. Counting with a unified standard to is probably biased. But it is undeniable that the upper middle class is emerging. The consumption of this class is not satisfied with this popular demand, that is to say, the middle and low-end goods as well as services are difficult to meet their consumption needs. From Chinese abroad shopping, according to statistics we have, 120 million people went abroad in 2015, and abroad consumption, including travel, accommodation, shopping fee, is RMB 1.5 trillion, RMB 700-800 billion of which is for shopping. The large part of consumption is from upper middle class. And now, they turn to buy some high-quality consumer goods with suitable cost performance from buying some luxury and high-level goods in the past. Therefore, in commercial works, a major point of the supply-side work is how to meet the personalized, differentiated consumer demand of upper middle class and to meet their needs of more variety, better quality, more secure, more comfortable shopping environment.

Gao Hucheng:As for supply, we mainly deal with the problems of product range, price, quality, security, shopping environment and other issues. Taking the product range as an example, our country provides only 200,000 or 300,000 kinds of goods, while a well-known supermarket in a developed country provides more than 700,000 kinds of goods. Another example is about the price, which involves tax issues and another prominent issue, that is, high logistics costs. After years of efforts, our logistics costs have declined, but it is still almost double that of developed countries. That is what we are going to concern with the supply-side and structural reforms.

We need to notice the major trend that income will gradually increase on the basis of stable employment. In 2015, China's GDP reached RMB 67.7 trillion, nearly USD 11 trillion, with a per capita GDP of about USD 8000. Per capital GDP of some coastal cities in East China has surpassed 10000 dollars or even USD 15000. Consumers with higher-income are gathering together and people are more likely to shopping overseas. We are trying to speed up the development of international e-commerce so as to make it convenient for consumers to shopping overseas without going abroad. This is also a focus of our work this year. Thank you.

A reporter from Singapore United Morning News:I have two questions. The first one is in this January, China's imports and exports dropped by 9.8%, so what do you think of the foreign trade situation for this year, and what is your goal for this year’s foreign trade? The second question is about "the Belt and Road initiative". This year is a crucial year for China to fully implement "the Belt and Road initiative", so what do you think about how "the Belt and Road initiative" will compete with the Asia-Pacific rebalancing strategy of United States, especially now that the TPP negotiations had been completed led by United States. Also, how will "the Belt and Road initiative" complement with the Asia-Pacific free trade area proposed by China? Thank you.

Gao Hucheng:When talking about the development of China’s foreign trade， we can see our imports and exports are still falling in January. Apart from the influence of a large number of migrant workers going back to their hometowns early due to the traditional Chinese festival, we may have ignored the fact that the imports and exports of major economies around the world are all declining. I have a set of figures here, but I will not cover each one, most of them falling by more than 10%. We can say that based on the situation of global trade and economic development, China’s foreign trade in January has kept up with the situation in 2015.

In regard to China's foreign trade, I would like to take this opportunity to talk about the situation in 2015, which may contribute to a better understanding of the development of China's foreign trade in 2016. In the Government Work Report 2015, the target of foreign trade for the full year is increasing around 6%. While the actual import and export for the year had a negative growth of 8% in dollar terms, exports fell 2.9%, and imports, 14.1%. The total volume of imports and exports amounted to USD 3.96 trillion. That why there is such a big difference is a problem about which many people are concerned recently.

Gao Hucheng:Before introducing the difference to you, I would like to explain an important issue. Since China's reform and opening up 30 years ago, China’s foreign trade volume has maintained an annual growth rate of 15.3% on average. The volume of imports and exports only reached about 500 billion dollars when China joined the WTO in 2001. Last year witnessed a big gap between expectations and actual results, but actually the gap has been present for almost 20 years and the gap of last year is even not the biggest one. But we used to ignore the problem because we focused on the high speed. For example, according to report of the government in 2003, the growth of export and import was expected to be 7%, but the growth reached 37.1% eventually. In 2007, our target was to maintain a high level of export growth and to increase import scale appropriately. We didn’t set any specific targets, but we achieved the growth of 23.6% that year. In 2009, although our expected growth was 8%, the volume declined by 13.9%. According to my research, less than 5 years witnessed the match of expected and actual results during past 20 years. But why did we ignore the issue? That’s because we have been used to a high-speed growth while holding a wrong view on negative growth. Actually, the global trade volume experienced a negative growth in 2015. Recently, WTO released statistics of import export of 71 major economiesin2015. According to the statistics, the export volume has decreased by 11% and the import volume decreased by 12.6%. I have mentioned that China has maintained a satisfactory foreign trade development. China remained the highest growth rate when the global trade volume increased and the lowest decrease rate when the global volume decreased. What’s more, China has maintained the world's largest country in trade of goods. Its share of global trade of goods improved faster than previous years, from 12.2% to 13%. Therefore, although we didn’t reach the expected 6% growth, the decline of 8% was not prominent or obvious compared with the statistics of past 20 years. Moreover, we should adjust our thinking mode. China's foreign trade has entered a new phase that traditional industries should improve quality and efficiency and new industries should seek for creative development. The new phase requires a conversion of speed, which is also a threshold we need to cross in order to improve quality and efficiency and achieve innovative development.

Gao Hucheng:In response to friends from press, I’ll answer the question that how this came about. It is not groundless that the growth rate of import and export in 2015 was estimated in the end of 2014 and it is because that the growth rate of 2014 had reached 3.4%. Then why was this set about 6%? At that time the international institutions generally believed that the economic situation in 2015 would be better than that in 2014 and the lowest growth rate would reach 0.2% and the highest growth rate would reach 0.5%. This was the unanimous judgment of the global economic situation in 2015 and we basically agreed with this judgment. For example, experts in industry, academia and other aspects thought that USD 55 per barrel of crude oil had been its lowest price. Many oil producing countries made the most conservative financial budget on the basis of USD 60 per barrel of crude oil. So at that time, it was generally believed that the prices of bulk raw materials and energy would gradually rise. However, as is known to all, last year, the commodity prices suffered "a cliff-like drop" that crude oil from the beginning of USD 55 kept going down to around USD 30.I don’t cite other examples one by one. There was a big change in commodities’ prices such as agricultural products, mineral products, energy products whose prices had fallen between 20%-50%.

Gao Hucheng:There was another change that we hadn’t estimated in late 2014 and early 2015, such as the geopolitics, unrest in some areas, and a variety of diseases such as Ebola, dengue fever and a series of mutation factors. Continuing spread of local conflicts, terrorism and other events had great impact on the economy. On this point, we realized that it was complex and serious and there might be many uncertain and unstable factors but the actual situation was indeed beyond our expectations. Until now, everyone present here cannot give the exact answer about how the problems develop and how to solve those problems. Some problems may be effectively solved and some may continue to ferment.

Gao Hucheng:The achievements of Chinese foreign trade last year are hard won. Simply speaking, there probably have several reasons as follows. One is that China has a very complete industrial system, a very long industry chain and very strong supporting capacity. Second is that China has a strong ability to innovate. In fact, many businesses have begun to take the initiative to adjust since the 2008 international financial crisis. China has world-class basic education, good higher education and great investment in education from the whole country to every family. Innovation spirit is indispensable and it is also the strong competitiveness of China. Third is the development of new industry, including the transformation of traditional industries and the innovation of new industry such as cross-border e-commerce. Cross-border e-commerce in Hangzhou pilot had a new export over USD 10 billion in the first year. Recently, there are some comments that the first thing in the beginning of this year is to expand the cross-border e-commerce pilot and 12 cities are included, which is the highlight of innovation. Fourth is that the government vigorously creates a convenience, efficiency and the rule of law in the business environment for the enterprise. There has a dramatic improvement in decentralization, cleaning up the various taxes and fees, work efficiency and reducing the burden on enterprises, especially making great efforts to solve the financing difficulties. Various financial institutions give a lot of support and take a variety of forms to help the development of foreign trade enterprises. I believe that these good trends will continue in 2016.

Gao Hucheng: I will stop here due to time pressures. Because this reporter raised several questions, then I will continue your next concern on "the Belt and Road Initiative" and introduce you the implementation and significance thereof.

"Belt and Road Initiative" is China's top-level design of the opening and economic diplomacy in the new era and China's suggestion and scheme on the cooperation development and common prosperity in the new era. President Xi actually proposed such a major cooperation initiative to promote peace and cooperation, openness and tolerance, mutual learning and mutual benefits under the "Silk Road" symbol, which is our understanding of the spirit of the silk road. What is an important basis for it? With respect to the implementation of the "Belt and Road Initiative", it does not delineate the boundaries by ideology, development path, development model and development level or other standards, but intends for mutual benefit and win-win through exchanges and cooperation in policy, trade, currency, infrastructure, cultural and other aspects in the principles of mutual negotiation and sharing; therefore, it is an open and inclusive cooperation initiative. I think this is the biggest difference between it and other initiatives. So, "the Belt and Road Initiative" is a China scheme targeting at the promotion of global cooperation and win-win development.
　　
Gao Hucheng: For two years, this initiative has enjoyed more and more response, attention and hot debates, and even some world famous research institutions began the study on the implementation of "the Belt and Road Initiative", since they want to figure out the impacts thereof on the global cooperation and development. More than 60 countries have given positive responses recently and some countries carried out strategic docking with China, and put forward specific ideas of cooperation. As concluded by the general secretary in his speech, "The Belt and Road" is not China's solo, but the mixed chorus of all countries. Over the past two years, the Belt and Road construction has achieved some gains and a number of major projects have been started; moreover, Western China leads the opening under the new situation; the opening of the Central China accelerates and the Eastern China ushered in another round of industrial upgrading and cooperation.
　　
Gao Hucheng: Our overseas trade and economic cooperation zones have made positive progress. In Pakistan, Sri Lanka, Belarus, Thailand, Egypt, Kenya and so on, we can cite many examples. We have established 75 overseas economic and trade cooperation zones in the world, which has created a large number of tax and employment for the host country. According to statistics, various overseas Chinese funded enterprises have paid taxes of more than USD 100 billion to the country in which they have invested; at the end of 2015, overseas Chinese funded enterprises have nearly employed 900 thousand foreign employees. I believe that as long as we stick to the principles of mutual negotiations, construction and sharing, we can draw on the wisdom of the world. "The Belt and Road" construction will obtain more cooperation fruits and benefit more countries and peoples; in addition, it will jointly promote the prosperity and development of the global economy.
　
Gao Hucheng: Back to TPP you care about, I have answered questions about TPP for several times. According to the statement pointed out in Informal APEC Economic Leaders' Meetings held by China in 2014, TPP and RCEP are ways available for the Asia Pacific region to promote the FTA construction. Therefore, China is open to any open, inclusive and transparent FTA arrangement. After signed in Oakland on February 4 this year, the full text of the official TPP document was published; its English version is in about 600 pages with an annex in about 3900 pages. Now, its Chinese version is available at the website of the foreign trade and international cooperation institute under the Ministry of Commerce so that the relevant industry and academic circles can study and evaluate the same. We believe that different countries have different levels of development and stages, the evaluation of which still need a period of time. We do not think that the TPP is targeted for China. We also do not believe that TPP and RCEP are opposite, and we just think compatible. In 2014, informal APEC leaders' meeting started the research on strategic framework with respect to the FTA construction and we will continue to promote this work.

Gao Hucheng: Finally, I want to say that, the evolution of the global trade and investment rules is based on two sides; when the multilateral system works quickly, the region one will slow down a bit. When the multilateral one is slower, the regional one will be a little faster. However, they will finally fall under a globally standard framework of the multilateral trading system, why? Very simple; since any free trade agreement, regardless of its standards and openness degree, firstly applies to its members and their development levels. But in the end, to form a rule generally applicable to the world, the main purpose is to have a market; no matter what the standard is, if the market factors are not considered, it will make no sense.
　　
Gao Hucheng: RCEP considers this point. RCEP, a regional trade arrangement with the largest difference, was first proposed by ASEAN in 2011, since ASEAN adopted five free trade agreements with 6 countries. ASEAN established FTA with Australia and New Zealand under one of its free trade agreements, a FTA with China, which was upgraded this year, with South Korea, Japan and India. RCEP is commonly referred to as "10+6", namely the negotiations among 10 ASEAN countries and 6 countries.

Why there is huge difference? We see the composition of "10+6"; there are huge differences both in the development path and the political system; moreover, in terms of the per capita GDP, there are countries with per capita GDP less than USD 1000 and also those with more than USD 50 thousand. From the point of view of the land area, there are dozens of square kilometers, hundreds of thousands of square kilometers, and China's 9.6 million square kilometers, which are very big in difference. I'm thinking about this question, that why have 7 members under RCEP joined in TPP? I think that although the development level is different, and the difference is very big, TPP and RCEP are the ways available for the establishment of the Asia Pacific FTA in the open, inclusive and transparent principles. Thank you.
　　
Guo Weimin: Each reporter can only have one question so that more reporters could ask question.
　　
A Phoenix TV reporter:There is a question about Hong Kong. After "Zhanzhong" event in Hong Kong, riots took place in Mongkok the Spring Festival this year, under which, will any free trade policies be adjusted? Thank you.
　　
Gao Hucheng: Hong Kong SAR is a society ruled by law. The central government believes and will firmly support the administration by the SAR government in accordance with the law, to maintain the prosperity and stability of Hong Kong, which will not be changed. The Ministry of Commerce will always and actively promote the economic and trade exchanges and cooperation and, support the economic development of Hong Kong in accordance with the "one country, two systems". For us, we will focus on the following four aspects.

To begin with, well carry out the agreement on trade in services under the CEPA signed between Chinese mainland and Hong Kong last year. As you may recall, the central government had promised that, by the 12th Five-year Plan, i.e. the end of 2015, the liberalization of trade in services between Chinese mainland and Hong Kong should be basically realized. We can further enhance the cooperation level in the service industry through the implementation of the foregoing agreement.

Second, support Hong Kong to give full play to its advantages in finance, professional services and others to participate in the "The Belt and Road" construction. At the same time, support companies in Chinese mainland and Hong Kong to carry out external investment and cooperation, so as to explore the international markets. In this regard, Hong Kong has soft power, so we invited Hong Kong's supervising bank to supervise in some projects overseas as a pilot.

Thirdly, continue supporting Hong Kong's participation in international and regional economic cooperation, consolidate and improve its position as an international financial, trade and shipping center. The central government is also actively promoting the FTA negotiations between Hong Kong and ASEAN. I can tell you that the negotiation has made positive progress.
Fourth, support Hong Kong's participation in the construction of four FTAs of Chinese mainland, especially Chinese (Guangdong) free trade area. Since the establishment of Guangdong FTA last April, Hong Kong has highly participated in the fields of finance and transportation, and there are a lot of openness policies and fields, which are tailored for the further promotion of the cooperation between Guangdong and Hong Kong. At the same time, we will continue to support Hong Kong to better share policies of the mainland's opening up, and strive for the economic development of Hong Kong. Thank you.
　　
A Japan's NHK TV reporter: China leads the FTA arrangements and its liberalization rate is not very high. Moreover, the FTA negotiations among Japan, China and South Korea proceeded very slow, which, in the opinion of the Japanese side, is attributable to China's unwillingness to accept a high level of freedom. What is your opinion, Minister Gao? Thank you.
　　
Gao Hucheng: China attaches great importance to negotiations on the free trade agreement among China, Japan and South Korea. You know, last year we successfully signed and began to implement the agreement and we twice reduced tax. According to the customs data recently available to me, the agreement has been successfully performed. FTA negotiations among China, Japan and South Korea have made positive progresses under the joint efforts of the three parties. They basically reached a consensus in several areas of the pattern negotiations, and we hope to solve as soon as possible some remaining problems in the pattern and text talks, and early enter into substantive negotiations. I would like to make some clarifications with respect to the standard issues. China, Japan and South Korea FTA agreement depends entirely on our economic complementarity. As for the market openness, from the desire and preliminary view expressed in the model discussion of the three parties, this FTA is not in a low level. Under the China-South Korea and China-Australia FTA negotiations, let alone the trade in goods, this area is relatively simple and easy. Level acceptable by China is not low in the aspects of investment and service trade rules. At present, no teams out of China, Japan or South Korea for the FTA negotiations express that its level will be low or high before entry into the substantive negotiations. But we hope you can notice that we put forward to establish a high standard FTA network targeted for the globe at the Fifth Plenary Session of the 18th Central Committee of the Communist Party of China. Therefore, China, Japan and South Korea will reach a comprehensive, open and high level free trade agreement based on the conformity with the economic and social development demands and the welfare of the people of three countries. Thank you.
　　
A Hong Kong CRN reporter: Hi, Minister Gao, we know that you have mentioned at last year's "NPC and CPPCC" press conference that, on cross-strait trade agreement negotiations, though Taiwan early began negotiations, a year later, cross-strait trade agreement has not taken effect and China-South Korea FTA has begun to put into force; what is your opinion on the influence thereof on Taiwan's economy? Taiwan is to formulate supervision regulations upon agreement, what is your opinion and could you give us a brief introduction to the cross-strait cargo and trade agreement negotiations? Thank you.

Gao Hucheng: Thank you for your concern. On the negotiations on cross-strait service and trade agreement and goods trade agreement, I hold that they actually reflect the wishes and aspirations of both sides' entrepreneurs. Frankly, the cross-strait services and trade agreements boast of high-level of openness and cover wide range, which is rare in similar agreements that have been signed by Chinese mainland, and which fully reflects Chinese mainland's sincerity and goodwill for Taiwan compatriots. Due to some objective factors and obstructions in Taiwan, the services and trade agreement has not yet entered into force, or benefit people of both sides. Hope that Taiwan will adhere to and maintain the political foundation and the right direction for the peaceful cross-strait relations, and promote the effectiveness of the service trade agreement as soon as possible, so that people and businesses in Chinese mainland and Taiwan can obtain benefit thereof. Otherwise, I think Taiwan may miss this opportunity.

Cross-strait cargo and trade agreement is a cross-strait economic cooperation framework agreement, and an important follow-up single consultation agreement under ECFA. Since March 2011, cross-strait talks teams have carried out 12 rounds of business communications on cross-strait cargo trade agreement, and the two sides have carried out sufficient communication on the agreement text and the market openness as well as other aspects. In this process, Chinese mainland, in the principle of mutual benefit and win-win, has made positive efforts to promote the interests of people of both sides.

As for the next step discussion and matters, proper arrangements will be made after further communication between the two sides and we will promptly make the same available to the press. Thank you.
　　
A Bloomberg News Agency reporter: Minister Gao, do you think necessary to further devaluate Renminbi in order to help the manufacturers and exporters who are struggling? Thank you.

Gao Hucheng: First of all, I don't think the RMB devaluation or appreciation is beneficial to importers and exporters. Nowadays, the economic globalization develops further, amid which, famous transnational enterprises and leading players actively allocate their production factors around the globe. Taking an example of traditional industry, recently, a large Chinese garment production enterprises, together with some downstream enterprises, established a garment industrial park in a South Asian country with an investment amount of more than RMB13 billion. After two to three years, it is able to annually export apparel products of USD 5 billion and has employed 200-220 thousand people. This enterprise does allocate its resources in the world. Clothing is a traditional industry and is not competitive in labor costs; however, Chinese equipment, technology, funds, management and raw materials and accessories have the competitive advantages. So, in general theory, amid the deep integration of the world economy, currency devaluation and appreciation, if not more than 10%, will have very little influence on the trade composition. So, I do not think that some fluctuations in RMB offers in recent days will have a great impact on trade. Thank you.
　　
A Hong Kong Wen Hui Bao reporter: There are four FTAs respectively established in Shanghai, Tianjin, Guangdong, and Fujian and may be of great help in attracting foreign investment; critically, some believe that the openness is not enough, since they think, except the openness of the trade in goods, some policies on capital flows have not been carried out sufficiently. What are your comments? Thank you

Gao Hucheng: Thank you for your attention to this question, which also attracts many people's concern, and I believe that the attending reporters must be very concerned about the development of Chinese free trade areas. The FTAs establishment is an important measure taken by the Party central committee and the State Council to explore ways and accumulate new experiences for comprehensively deepening reform and expanding opening up in the new situation. According to thirty years of reform and opening up, China learned to move steadily. Whether we can further expand the opening up, and further deepen the reform, we need to try it in the FTA and, conclude the experience in order to further popularize the same. The FTA core is to get rid of the system and mechanism constraints restricting the market from playing a decisive role in the allocation of resources through system innovation and decentralization. In the specific practices, it is not very long from the establishment of Shanghai FTA and then we expand the same and set up three new FTAs in Guangdong, Tianjin and Fujian.

In April last year, the State Council released 4 FTA plans. The departments of the State Council undertook 366 tasks; that is to say, the implementation rate exceeded 80%. As mentioned by the reporter just now, some pilot tasks have not been carried out, which will happen under several situations: firstly, 2-3 years tests are required, and moreover, some comprehensive reform issues with a wide range of effects should be deliberately and steadily prepared; second, the related policies have been introduced, but the relevant departments are drafting implementing rules, which is common in the service sector. In manufacturing industry, basically all policies have been carried out; third, for some cross-sector reform issues, the relevant departments are strengthening communication, and actively promoting the relevant work. The Ministry of Commerce, leading the inter-ministerial joint meeting of the State Council on the FTA affairs, will continue to fully coordinate all departments and local governments with accelerating the full implementation of various tasks.
　
Gao Hucheng: Overall, the FTA construction goes well and has made remarkable achievements in terms of system innovation, decentralization, and others. In the areas of investment, a foreign capital management mode in combination of national treatments and a negative list before entry, which make the FTA become a new hot spot for foreign investment. Taking Shanghai FTA as an example, not only the establishment of foreign investment enterprises grew at a 50%, and the average single foreign investment project exceeded USD 10 million. In the other three FTAs, their individual foreign investment amounts are all no less than USD 6 million. In the FTAs, the procedures for the establishment of foreign-funded enterprises in fields other than the negative list can be finished within 3 working days in general. Outside the FTAs, the approval of the contract and articles of association may need more than 10 days, or even months. This is a phenomenon you can see during your interview in FTAs. More progresses have been made in terms of the trade facilitation. In the FTAs, the "single window" system is applied for international trade, which increases the clearance efficiency by 40%, which will be more. In terms of pro-seo and post regulation, the FTAs have big data government supervision platform, credit classification management and others, which are all leading the country.

In 2014, after the first anniversary of Shanghai FTA, 34 pilot conclusions were carried out around the country. At present, we have summarized some best practices, for the reference of all parts of the country. There are some new experiences, for which, the third party assessment procedures are in the process of performance. We hope to early promote the said experience over the country so as to release the dividends of reform. Thank you.
　　
Guo Weimin: The last question.

A reporter from economic department of China Daily:The European Commission recently called for China government's measures for reducing steel production capacity, and announced the anti-dumping investigation into three types of steel products of China; do you have any comments on this? Thank you.

Gao Hucheng: In recent years, the global economy recovered slow, and grew at a slow rate under increasing uncertainties and unstable factors. Countries' policy orientation constantly adjusted, especially at the beginning of this year, when the global stock and foreign exchange markets appeared some new changes. But a key question is that, great changes have taken place in the global supply and demand, and overcapacity has become a global problem. I just talked about that the energy products, mineral products, agricultural products, and other bulk commodity prices change for many reasons, such as regional conflicts and geopolitics, which cannot be avoided, and must also be faced up. This is actually a question of supply and demand. Steel, energy and other products are all the same. Dramatic price cut is closely linked with supply and demand.

Second, China became the world's superpower in terms of trade in goods from 2013, and also a country that suffered the most anti-dumping investigations for 21 consecutive years. I believe that we should have common heart on the trade remedy measures, which should not be read too much. Since in accordance with the WTO rules on trade remedy, as long as the enterprise has certain representativeness, and it has the power to put forward the anti-dumping or countervailing application, its trade relief department must accept its application and conduct investigation.

Gao Hucheng: Third, regarding iron and steel, it is global overcapacity. We must sit down for solving global problem. China had good communication and discussion for iron and steel issues with the U.S. and the Europe. China has participated in the OECD discussion and dialogue on issues of the steel for ten years. To solve the current trade remedy investigations conducted by the EU against part of the steel products, I would like to stress the following points: one is to see the overall situation of this issue and we have to sit down and talk. China's steel export to the EU Member States firstly is a market behavior. Due to this, some enterprises may face threats and be impacted, and they therefore file trade relief appeals, but we should also see the benefits obtained by the import enterprises and consumers therefrom. These steels are purchased by the EU importers or consumers from China at reasonable prices, which is one of the most basic principles. The enterprises' appeal is also a market behavior, which should not be deemed as that of the government or the European Commission. Second, we should, under the framework of the relevant WTO rules on trade remedies, safeguard the legitimate rights and interests of Chinese enterprises and take active defense. Third, encourage dialogue and cooperation in the industry. This is our experience on successfully dealing with this kind of issue with many important trade partners. Especially the EU, we may remember the PV and polycrystalline silicon friction between China and the EU in 2014, which involves more than USD 20 billion. Finally, through the government, industry and enterprise cooperation, an agreement was properly reached. The agreement not only meets the demands of Chinese enterprises for the market share in Europe, but also solves the European photovoltaic enterprises' worry and polysilicon enterprise demands. Until now, the agreement is executed smoothly and widely accepted by the industry and related businesses and consumers. In connection of the global problem of iron and steel, I still encourage enterprises, industry and government to properly solve the same by strengthening cooperation. Thank you.

Guo Weimin: Thank you. Today, the Minister Gao Hucheng introduced China's foreign trade in details, including our consumption, as well as the FTA construction. If you have any other questions, they may be answered at regular press conferences of the Ministry of Commerce. Thank you for your staying with us today and the press conference is over.

Translated by Wang Baihua
Proofread by Eddiea