Dear friends from the media,

Good morning. Welcome to the press conference and I’m glad to see you today. I’ll brief you the situation of commercial performance in January-October and that in October, and answer your questions.

I. Market Performance

In October, the national consumption market continued to maintain the momentum of rapid growth. The retail sales of the national social consumer goods in October amounted to RMB3.11trillion, up 10% year on year. In January-October, the retail sales of the national social consumer goods increased 10.3%, the same growth as that of the first three quarters. According to the monitoring of the MOFCOM, in October, 5,000 major retail businesses increased 4.6% year on year, the highest growth since this year, with 0.4 percentage point faster than that of the previous month, and it has maintained the rising momentum for three months in a row. The consumption market mainly showed the following highlights in October:

1. Online consumption sustained a rapid growth. In October, the retails of online enterprises monitored by the MOFCOM grew up 25.3% year on year, higher than that of stores, supermarkets and shopping mall by 23.1, 18.7 and 18 percentage points respectively. According to the data by the National Bureau of Statistics, the retail of national online physical goods in January-October amounted to RMB3.174 trillion, up 24.9% year on year, taking up 11.8% of the total retail of social consumer goods, 1.4 percentage points higher over the same period of last year.

2. Consumption in transport continued to speed up. Boosted by policy stimulus and market demands, auto market in October maintained a sound momentum. According to the statistics by China Association of Automobile Manufacturers, the sales of automobile grew up 20.3% year on year. Among these, the sales of passenger car of 1.6 liters or below 1.6 liters grew up 28.1%, taking up 73.1% of the total sales of passenger car. That of automobiles of enterprises above the designated size grew up 8.7% year on year, 1.6 percentage points higher than that over the same period of last year. The sales of oil and petroleum products increased 4.7% year on year, picking up for three years in a row. That in January-October grew up 0.1% and has turned positive for the first time since April.

3. The golden week of National Day Holiday boosted consumption remarkably. According to the monitoring by MOFCOM, the national retail and catering enterprises realized a sales value of RMB1.2 trillion in the golden week of National Day Holiday this year, 4.4 times that in 2005, up 10.7% year on year, with 0.4 percentage point higher than that in January-October. Among these, sales in clothing, home appliance and automobile stood out, and that in popular catering, tourism and entertainment saw rapid growth. According to the data by National Tourism Administration, the golden week of National Day Holiday has received a total of 593 million tourists across the country, up 12.8% year on year, with a tourism revenue of RMB482.2 billion, up 14.4% year on year.

4. Consumer price rose slightly. Affected by the low base of that over the same period of last year, the overall CPI in October rose by 2.1%, 0.2 percentage point higher than that of last month. In 36 large and medium size cities monitored by the Ministry of Commerce, the prices of agricultural products were up 1.9% year on year, 1.7 percentage points higher than that of last month. Among these, the price of pork went up 2.1% year on year, 1.2 percentage points lower than that of last month, slowing down for five months in a row. The average wholesale price of vegetables increased 1.2% month on month.

II. Foreign Trade

In January-September, the imports and exports of service totaled RMB3.8496 trillion, up 21.4% year on year. Among these, exports of service reached RMB1.3112 trillion, up 8.7% year on year; and imports of service RMB2.5384 trillion, up 29.1% year on year. Features of trade in service were listed as follows:

1.The size increased constantly and its percentage in foreign trade rose steadily. Since this year, China’s imports and exports of service has maintained a double-digit growth. In January-September, trade in service took up 18% of the foreign trade, 2.6 percentage points higher than that in 2015.

2.Exports of high value-added service grew fast. Exports of technical service, maintenance and repair service and advertising service stood out with a value of RMB58.8 billion, RMB25.3 billion and RMB23.1 billion respectively, up 18.4%, 54% and 65% respectively year on year.

3.Trade deficit is enlarged. Affected by the rapid growth of travel (including tourism, study abroad and medical care), China’s deficit of trade in service in January-September rose to RMB1.2272 trillion, with an increase of RMB295 billion over last year.

III. Foreign Investment in China

China’s foreign investment attraction in January-October has the following characteristics:

1. The overall national absorption of FDI sustained a growth. In January-October, a total of 22,580 newly-established foreign-invested enterprises were approved, going up 7.4% year on year. The actually utilized FDI amounted to RMB666.3 billion, up 4.2% year on year (equivalent to US$103.91 billion, with data of bank, insurance and security excluded).

2.Foreign investment speeded up to shift to high-end link in industrial chains. In January-October, the actually utilized FDI in service sector was RMB 471.25 billion, up 9.1% year on year. Among them, the actually utilized FDI in hi-tech service sector reached RMB 79.18 billion, going up 90.2% year on year. Among these, the information service, data contents and relevant service, R&D and the service of design, and transformation of scientific and technological achievements service had comparatively high utilization of foreign capital, increasing by 232.1%, 31.1%, 44.6% and 62.1% respectively year on year. In hi-tech manufacturing, the utilization of FDI in pharmaceutical industry, medical equipment and instrument manufacturing stood out by 92.3% and 87.5% respectively year on year.

In manufacturing, the actually utilized FDI in communications equipment, computer and other electronic manufacturing, transport equipment manufacturing, general equipment manufacturing, electrical machinery and equipment manufacturing and special equipment manufacturing took up 51.2% of China’s total input of FDI in manufacturing.

3. There are a large number of newly set large enterprises with added capital. In January-October, there were almost 600 large foreign invested enterprises with a total investment amount over US$ 100 million, and about 370 enterprises with more than US$100 million added capital. These enterprises focus on emerging industries and high-tech industries. Among them, there were manufacturing enterprises which engage in the manufacturing of new materials, new energy automobiles and batteries, aircraft components, medical instruments, industrial automatic control and integrated circuit and chips; among them, there were also service enterprises that engage in high-end service industry such as e-commerce, cloud computing, R & D of bio-fuel, R &D and the application of the technology of the Internet of Things. This trend is in accordance with the direction of the upgrading and transformation of China’s industries and will release huge strength for the economic transformation of China.

4. The investment of the United States and EU in China continued to increase. In January-October, the United States’ investment in China increased rapidly. The United States’ investment and that of 28 EU countries in China increased 79.8% and 41.5% respectively. Among 28 countries of EU, the investment of Britain, Germany, Luxembourg and Sweden in China greatly increased by 119.9%, 86%, 154.2% and 52.6% respectively.

5. The absorption of foreign investment from the western region grew rapidly and the industrial structure was further optimized, and that from the eastern region remained stable growth. In January-October, the actual use of foreign investment in the western region was RMB 49.27 billion, up 29.8% year on year. Among these, that in transport, warehouse and postal service, information transmission, computer service and software, and lease and business service sector was up 278%, 201.8%, 155.5% and 116.4% respectively. The actual use of foreign investment in the eastern region reached RMB 582.82 billion, up 6.9% year on year. The actual use of foreign investment in the Yangtze River Economic Belt was RMB 313 billion, up 6.5% year on year.

6. The actual use of foreign capital by foreign M&A continued to increase. In January-October, a total of 1,073 newly-established foreign-invested enterprises by M & A were approved with an actual use of foreign capital RMB 118.21 billion, up 16.3% year on year, taking up 4.8% and 17.7% respectively of the amount of the newly-set up foreign-invested enterprises and the actual use of foreign capital.

IV. Outward Investment and Economic Cooperation

In January-October 2016, China’s outward investment and economic cooperation business maintained a favorable development trend. Chinese domestic investors carried out non-financial direct investment in more than 7,000 outward enterprises in about 162 countries and regions, with an accumulative investment of RMB 961.93 billion (US$ 145.96 billion), up 53.3% year on year. The newly-signed contract value of contractual foreign projects reached RMB1.09084 trillion, (US$165.52 billion), up 11.1% year on year. The completed turnover was RMB755.72 billion (US$114.67 billion), the same as that of its counterpart period last year. In October, China has sent all kinds of laborers abroad with a number of 980,000.

1. The scale of outward investment continued to increase. In January-October, China's non-financial foreign direct investment reached US$ 145.96 billion, with an increase of 53.3%. In October, the foreign direct investment reached US$11.74 billion, up 48.4% year on year. The newly-signed contractual value of contractual foreign projects reached US$165.52 billion, up 11.1% year on year. In October, the newly-signed contractual value reached US$17.69 billion, up 56.7% year on year.

2. Regional distribution of overseas investment was still concentrated, and the investment in the U.S. enjoyed a rapid growth. In January-October, the mainland’s investment in Hong Kong, ASEAN, EU, Australia, the U.S., Russia and Japan totaled US$ 109.15 billion, accounting for 74.8% of China’s total direct outward investment in the same period. The investment in the U.S. grew rapidly with the growth rate reaching 173.9%.

3. Industrial distribution pattern of outward investment was being optimized, and investment in manufacturing industry grew continuously. In January-October, investment in business service industry, manufacturing, wholesale and retail, information transmission, and software and information technology service accounted for 25.8%, 18%, 16.1% and 11.7% respectively of the total investment in the same period. Investment in manufacturing industry reached US$ 26.23 billion, up 163.8% year on year. Among these, the investment in the equipment manufacturing industry reached US$ 16.04 billion, 3.6 times that of the same period last year, accounting for 61.2% of the total outward investment in the manufacturing industry.

4. The contractual projects in countries related to “Belt and Road” witnessed a rapid growth. In January-October, Chinese enterprises newly signed 6,877 contracts of contractual foreign projects with 61 countries along “Belt and Road”, with a contract value of US$ 84.39 billion, up 30.7% year on year, accounting for 51% of the total contract value of the newly-signed contractual foreign projects; the completed turnover was US$ 52.74 billion, up 5.6% year on year, accounting for 46% of the total amount in the same period.

5. Outward investment of the provinces and municipalities along Yangtze River Economic Zone was active. In January-October, the outward investment of provinces and municipalities along the Yangtze River Economic Zone was US$ 51.51 billion, twice that of the same period last year, accounting for 35.3% of China’s total outward investment, accounting for 40% of the total amount of the local outward investment.

V. The 13th Five-Year Plan of Domestic Trade Circulation was introduced

According to the State Council’s requirements for the development of domestic trade circulation, the Ministry of Commerce, together with 10 ministries including the National Development and Reform Commission, the Ministry of Industry and Information Technology and the Ministry of Finance, issued The 13th Five-Year Plan of Domestic Trade Circulation officially on November 16.

The Plan centers on promoting the quality and efficiency of circulation with the informatization, standardization and intensification of circulation as the main direction. It aims to construct a modern circulation system, promote supply-side structural reform and make full play of the fundamental and leading role of domestic trade circulation in the national economy. We put forward five specific goals in the Plan, including expanding the overall scale steadily, promoting the level of modernization obviously, promoting the enterprises’ competition obviously, further strengthening the development coordination, and optimizing business environment obviously. There are several quantitative indexes, including that up to the year of 2020, the total retail sales of social consumer goods would reach RMB 48 trillion with an annual growth rate of about 10%; the added value of the wholesale and retail of the accommodation and catering industry would reach RMB 11.2 trillion with the annual growth rate of about 7.5%. The transaction volume of e-commerce would reach RMB 43.8 trillion with the annual growth rate of about 15%; the online retail sales would reach RMB 9.6 trillion, with the annual growth rate of about 20%.

Around the development goals and main tasks of China’s domestic trade circulation during the 13th Five-Year Plan, the Plan also put forward supporting measures in 7 aspects including optimizing the management system and mechanism, strengthening financial support, adjusting and optimizing tax policies, optimizing the supports of land elements, promoting the building of talents team, optimizing the system of statistics and monitoring, and as implementing the mechanism of plan promotion.

The features of the Plan are as follows:

1. The functional changes and innovation modes of circulation against the internet background are highlighted. According to the development trend of circulation against the background of “Internet+”, the Plan expands the functional border of traditional circulation, emphasizes the productive service and life service function of domestic trade circulation, puts forward some new concepts like intelligent supply chain, and encourages the development of new modes like platform economy and sharing economy.

2. The main directions of the informatization, standardization and intensification of circulation are highlighted. Directed by the spirits of the Fifth Plenum of the 18th Central Committee of the Communist Party of China, “informatization, standardization and intensification” run throughout the Plan. The Plan will accelerate the application of the new generation of information technologies circulation, further strengthen the construction of the standards system of circulation and comprehensively promote the intensification level of circulation.

3. The important role of domestic trade circulation in promoting supply-side reform is highlighted. The Plan pays great attention to its role as the bridge connecting production and consumption through circulation. It also pays attention promoting the circulation supply level, the gearing production according to demand and matching supply and demand, which is to drive the consumption structural upgrading, to play the leading role of new consumption, to accelerate the cultivation and formation of new supply and new force, to bolster the supply-side structural reform and to serve the overall situation of stabilizing growth.

4. Policy support to the development of domestic trade circulation is highlighted. For example, in terms of financial policies, we will encourage social capital to establish industrial (stock) investment fund for domestic trade circulation development. We will guide social capital to take part in it, and optimize commonweal circulation facilities through marketized operation, which is to make them participate in long-term mechanism. In terms of tax policies, we will implement the policy of replacing the business tax with a value-added tax, promote the reform of consumption tax and implement the departure tax refund policy for overseas tourists. We will implement the same price of industrial electricity and commercial electricity, allow large-scale domestic trade circulation enterprises to take part in the direct dealing of electricity, and carry out the pilot that the business users could choose by themselves the average electricity price of the commercial industry or the peak-valley time- price. In terms of land policy, we will implement the policy that the area proportion of the commercial and comprehensive service facilities of the newly built community in the overall floorage should not be less than 10%; we will encourage all kinds of market entities to make use of stock properties and land resources to develop modern circulation industry, and the original land use and type of right could remain unchanged within 5 years under the premise that the subject of the land and the planning conditions are not changed. As for those involving the transfer or leasing of the use right of the land, which conform to the plan and the allocation decision or related laws, there are no clear-cut stipulations to recover the land use right, we could offer supply through approved agreement.

In terms of the specific contents of the 13th Five-Year Plan of Domestic Trade Circulation, please pay attention to our website.

Phoenix Satellite TV: MOFCOM spokesperson said on 15 November in a written statement that the transition period for the supervision over cross-border e-commerce retail imports would be extended to the end of 2017. Could you explain this further?

Sun Jiwen: It was approved by the State Council that the government would grant a one-year-long transition period for its supervision over cross-border e-commerce retail imports from 11 May 2016 onward. According to State Council requirement, MOFCOM is jointly conducting an in-depth research with relevant departments to find a supervisory model that suits the characteristics of the development of cross-border e-commerce retail imports as a preparatory measure to ensure policy consistency in the post-transition period.

Along with relevant departments, the Ministry of Commerce has carried out several field study tours to the cross-border retail import pilot cities in order to gain a detailed understanding of existing supervisory practices in the pilot cities, drawn on the cross-border retail import practices of other countries, and fully solicited the views and recommendations of cross-border e-commerce businesses, general trade enterprises and research institutions.

We believe that cross-border e-commerce retail import, as an important new business type, relies on the Internet and big data resources, and is an integration of the advantages of Internet-based marketing, online payment, logistics and merchandise traceability technologies. It enables a rapid response and positive interaction between supply and demand, increases effective supply in the market, plays an important role in meeting the diverse needs of domestic residents, and has become a useful supplement to the general trade import and an important channel for the reshoring of overseas consumption. At the same time, its operational characteristics also put forward new challenges and requirements for the existing supervision model of goods import.

To facilitate the steady development of cross-border e-commerce retail sales and guide reasonable expectations, with consent from relevant departments, we decided to extend the supervision transition for cross-border e-commerce retail imports to the end of 2017. In the meantime, we hope that cross-border electronic retailers could intensify self-discipline, strengthen product quality and safety, enhance risk prevention and control, and jointly create a favorable environment for cross-border electronic retailing.

The Ministry of Commerce will work actively with relevant departments to study and improve the supervisory measures that are in line with current laws and regulations and adapt to the realities of cross-border electric retail import, in the interests of promoting the healthy development of the industry and safeguarding the interests, safety and health of consumers.

[Dragon TV]: China's online retailers last week ushered in the eighth "Double Eleven" (11 November). How is this year's "Double Eleven" different from those of previous years? Have those problems such rampant fakes and clogged logistics of past years been resolved?

Sun Jiwen: As we entered the eighth year of the "Double Eleven", the day is not only the most important annual online sales day for China's online retailers, but also provides business opportunities for foreign vendors and offline businesses. It has developed into an experience shopping festival that features shopping, entertainment and culture. According to the third-party statistics, the online transaction value for the 2016 "Double Eleven" exceeded 180 billion Yuan, which was a record high. Compared to previous years, this year's "Double Eleven" shows three new features:

First, the businesses participating the campaign are more diversified. With active participation by online retail platforms, differentiated competition was heated. Traditional industries, offline retailers and supermarkets, as well as telecommunications service suppliers, airlines, hotels, restaurants and other service industries also participated in the campaign to varying degrees. Buyers and sellers came from a broad international spectrum, with consumers from 235 countries and regions shopping on Chinese online retail platforms during "Double Eleven" period, and many European and American well-known e-commerce businesses launching their promotional activities as well. The "Double Eleven" has turned into a global shopping festival with a growing influence.

Second, online platforms drove offline experience. Electronic commerce platforms use offline stores to achieve online-offline interconnection, promote whole-channel integration and improve shopping experience. The "entertainment e-commerce" model introduced a number of entertainment elements, and closely combined media, vendors and consumers together to achieve efficient interaction in a new marketing model. Personalized shopping scenarios based on big data, artificial intelligence and other advanced technologies also provided a strong support for personalized and intelligent consumption.

Third, the hot consumption spots reflected economic transformation and upgrading. The increase in the sale of home appliances and telecom equipment showed positive results of the supply-side structural reform. Green and health products were a popular sell, while high-end imported brand goods occupy the forefront of sales charts. Cities below the 3rd tier and rural areas became a new driving force for consumption. With increased penetration of online shopping in the rural areas, urban and rural residents' spending power continued to rise.

As for the issues with false propaganda and sale of infringements and counterfeits found in the previous "Double Eleven" campaigns, the Office of the National Leading Group for the Fight Against Infringement and Counterfeiting and the relevant departments made plans before this year's "Double Eleven" and issued a series of joint preventive measures. The Ministry of Commerce, along with the relevant departments and the relevant e-commerce and express delivery companies jointly signed an information sharing agreement to check the bumping up of credit records through fake transactions. At the same time, the Ministry of Commerce, together with other relevant departments, strengthened communication with the relevant electronic commerce platforms, held multiple cautionary meetings and symposiums to study measures aimed at strengthening online supervision. These measures have a positive social impact, and effectively improved the order of online shopping.

Economic Daily: It is reported that a working group organised by the Ministry of Commerce is currently visiting the Philippines, with a view to encouraging Chinese enterprises to invest in the Philippines. Could you please brief us on the visit of the working group to the Philippines?

Sun Jiwen: On November 14-17, Wu Zhengping, Director General of the Department of Asian Affairs of the Chinese Ministry of Commerce, led a working group to the Philippines to implement the consensus reached by the leaders of the two countries on the trade and economic front during President Duterte's visit to China, and to hold concrete discussions with related economic departments in the Philippines on the further strengthening of China-Philippines trade and economic cooperation. During the visit, the Working Group met with relevant departments of the Philippines and held relevant working meetings.

Both sides agreed that Chinese Minister of Commerce Gao Hucheng and Philippine Minister of Trade and Industry Lopez will jointly preside over the 28th China-Philippines Economic and Trade Joint Committee meeting in early 2017. China is willing to continue to promote the expansion of imports from the Philippines, encourage Chinese enterprises to expand investment in the Philippines, and explore the establishment of trade and economic cooperation zones in the Philippines. The two sides will speed up the pace to negotiate and sign the "China-Philippines Economic and Technical Cooperation Development Plan (2017-2022)" to identify the priority areas of cooperation between the two sides. China will actively consider providing financial support for infrastructure projects in the Philippines, and hopes to work with the Philippine side to confirm the list of priority projects as soon as possible so as to start the work at an early date. In that way, the cooperation would come to fruition earlier, thus benefiting economic and social development and improving people's livelihood in the Philippines. The Chinese side will also encourage Chinese enterprises to continue to uphold the principle of mutual benefit and win for all, promote trade and economic cooperation between China and the Philippines according to laws and regulations, fulfill corporate social responsibility and increase localized implementation.

Persons responsible for the concerned department on the Philippine side told the Chinese side that sending a delegation to the Philippines within one month after President Duterte's visit to China demonstrates the positive attitude to cooperate with the Philippines in good faith and the efficient work style of the Chinese side. The Philippine side deeply appreciated this. Based on the current administration's "Ten-pointed Economic Development Agenda" and the "Economic Development Program 2017-2022", the Philippine side will study and propose priority areas and projects for cooperation to the Chinese side. The Philippines is vigorously developing infrastructure projects such as railways, highways, bridges, airports and agricultural irrigation, and welcomes Chinese enterprises’ active participation in these projects. The Philippine side is willing to work closely with China to speed up internal coordination to strive for early progress in key cooperation projects.

Hong Kong Ta Kung Pao: President Xi Jinping has embarked on his visit to Ecuador, Peru and Chile. Can the spokesperson share with us the state of play of China’s commercial relations with Latin American countries as a whole?

Sun Jiwen: In recent years, trade and economic cooperation between China and Latin American countries have flourished in an all-round way with notable results in trade, investment and project contracting.

China-Latin America trade complements each other’s strength and enjoys a broad prospect. In 2015, two-way trade reached USD236.5 billion, accounting for 6% of China’s total foreign trade. In the first three quarters of 2016, it hit USD161.5 billion, down by 10.5% from the same period last year. But trade still plays a vital role in the pragmatic cooperation between the two sides, which is manifested in a number of ways. First, the share of trade with China continues to rise in the overall trade of Latin American countries. Second, the trade structure is upgrading. Latin America has become an important export market for China’s automobiles, rail transit, communications and engineering machinery while China’s import from Latin America is increasingly diversified. For instance, wine, beef, fruit and seafood from Latin America are widely popular with the Chinese consumers. Third, Latin American countries’ export of iron ore, oil, soybeans and other commodities to China is growing steadily.

Investment plays an increasingly important role. Chinese companies are investing ever more in a single project in Latin America. Large M&A deals have increased, mainly in energy and mineral resources, infrastructure, finance, agriculture, manufacturing, information industry and services. Latin America has become a major destination for China’s outbound investment. According to China’s published statistics on outward FDI, by the end of 2015, Chinese companies had invested USD 126.3 billion in Latin America, accounting for 11.5% of the stock of China’s FDI outflows. In the first three quarters of 2016, China’s non-financial direct investment in Latin America reached USD 25.1 billion, which was a 70% increase from the USD 14.7 billion in the same period of 2015.

Infrastructure cooperation is a new area of growth. In recent years, as Latin American countries increase their investment in infrastructure projects, Chinese companies have invested in or contracted projects in Latin America by leveraging their advantages in capital, technology, equipment and construction capabilities. This has given a strong boost to the economic cooperation between China and Latin America and enhanced the resilience of Latin American economies. A number of successful projects have been completed, mainly in transport, power, housing, ports, communications and oil and gas. By the end of 2015, Chinese companies had signed contracts worth a total of USD 129.2 billion with a completed turnover of USD 84 billion. In the first three quarters of 2016, Chinese companies contracted projects worth a total of USD 10.1 billion in Latin America with a completed turnover of USD 9.1 billion.

So in general, despite multiple negative factors such as the subdued world economic recovery and falling commodity prices, China and Latin American countries have worked together to ensure diversity, dynamism and vitality in their commercial relations, forging a partnership of mutual dependence and shared development.

The trade and economic cooperation between China and Latin America, which is based on equality and mutual benefit, has brought tangible benefits to our businesses and people. It not only benefits the two sides but also has a profound implication on south-south cooperation and global prosperity.

I believe President Xi’s state visit to the three Latin American countries will go a long way in boosting two-way trade and investment.

US Market News International: Recently, the European Union has repeatedly claimed that China’s investment environment is worsening and demanded no-discrimination towards EU enterprises. How does the MOFCOM spokesperson comment on that?

Sun Jiwen: Facts speak louder than words. Let me quote some figures to answer your question. According to MOFCOM, from Jan. to Oct. 2016, the paid-in investment by the 28 EU countries together in China amounted to RMB 53.47 billion (or USD 8.36 billion), up by 41.5% year on year, which was far higher than the 4.2% of overall inward FDI growth over the same period. The market and businesses can vote by foot when it comes to the merits of a particular investment environment and the above figures reflect most EU businesses’ positive view on China’s business environment.

An up-close study of these figures will reveal the following features:

First, EU investment has poured into a large number of capital and technology intensive projects. Since this year, a number of well-known multinationals from the EU have increased their investment in capital and technology intensive projects in China based on their optimistic outlook of the Chinese market and its potential. The Chinese market will continue to be a strong contributor to the global growth of European businesses.

Second, EU investment has gone into a wide range of sectors. Since this year, many sectors have seen fast investment growth from the EU, including manufacturing sectors such as oil refinery, transport equipment and pharmaceutical products, and service sectors such as information transmission, computer services, software, finance, leasing, commercial services, scientific research, technical services, geological survey, wholesale and retail.

Third, over half of EU members saw significant growth in their China-bound investment. By the end of October 2016, the 28 EU countries had cumulatively set up 42,657 companies in China with a paid-in investment of RMB 913.76 billion, accounting for 7.3% of China’s FDI inflows (in actualized terms).

I want to stress that China stays committed to its policy of attracting foreign investment, protecting the legitimate rights and interests of foreign invested companies and providing better services to foreign investors. As China strives to build a new open economy, we will further open up various sectors, ease restrictions on foreign investment, step up protection of foreign invested companies and investors, and create a rule-based, international and easy business environment.

We welcome companies from around the world including those from the EU to increase investment in China and share the fruits of China’s reform, opening up and economic development.