Friends from the media, good morning. Welcome to the Ministry of Commerce in spite of the rain to take part in the regular press conference. I’m Gao Feng, \spokesman of MOFCOM, and I’m glad to meet you here. In the future days, I’m willing to cooperate with you to make a good job in press release of the commerce field.

Today, I have four pieces of information to release.

I. Economic and Trade Achievements of President Xi Jinping’s Visit to Russia

On July 3-4, President Xi Jinping made a successful state visit to Russia, which is the third meeting of the leaders of the two countries, pointing out the direction for the comprehensive and in-depth development of the bilateral economic and trade relation in the new era.

During President Xi’s visit to Russia, Chinese Minister of Commerce Zhong Shan and Russian Minister of Economic Development Maxim Oreshkin signed the Joint Announcement between Chinese Ministry of Commerce and Russia Ministry of Economic Development on the Joint Feasibility Research of the Eurasian Economic Partnership Agreements, deciding to launch the feasibility study on the Eurasian economic partnership agreement. The joint feasibility study will be comprehensive and cover the fields of both concern and within the terms of reference, including the issues related to service trade, investment and goods trade.

Conducting the joint feasibility study of Eurasian economic partnership agreement aims to implement the important consensus of the leaders of the two countries on the docking and cooperation of the Belt and Road Initiative and the construction of Eurasian Economic Union, which not only helps to further explore and expand the bilateral trade and investment, but also contributes to creating a more fair, transparent, convenient and expectable trade and investment environment, so as to promote the regional economic development jointly.

At present, the favorable factors of China-Russia bilateral economic and trade relation are accumulating, trade recovery enjoys a strong trend, trade structure is optimizing, investment cooperation develops rapidly, local cooperation is rising and regional cooperation continues deepening.

Next, the two parties will actively implement the consensus reached by the leaders of the two countries, and promote China-Russia economic and trade cooperation to develop steadily. We will carry out the related work from three aspects. Firstly, strengthen strategic docking. We will actively promote the docking and cooperation of the construction of “Belt and Road” and the Eurasian Economic Union, and conduct the joint feasibility study of the Eurasian Economic Partnership Agreement; we will accelerate the negotiation of the Economic and Trade Cooperation Agreement between China and Eurasian Economic Union, striving to conclude the negotiation as soon as possible. Secondly, consolidate trade growth. At the same time when expanding the trade scale of traditional bulk commodity, we will continuously optimize trade structure, and promote the proportion of high-tech products and agricultural products, so as to promote the level and upgrading of China-Russia trade. Thirdly, accelerate the implementation of large strategic projects. We will make efforts to start a batch of demonstrative projects in the field of energy, nuclear energy, aviation, spaceflight, agriculture, and cross-border infrastructure. We will also explore the new growth points of regional cooperation like the development of the Far East and the North Pole, making efforts to gain more early harvest.

We believe that, through the joint efforts, we will surely transfer the high-level bilateral political relation to practical cooperation achievements, so as to play an active role in consolidating and deepening China-Russia comprehensive strategic cooperation partnership.

II. The situation about the Ministry of Commerce ensuring the supply to the Southern market in the flood season

Recently, Jiangxi, Hunan, Hubei, Anhui and Guangxi were hit by heavy rainfall, and parts of them encountered flood disaster. The Ministry of Commerce paid great attention to it, conscientiously implemented the important indications and instructions of the General Secretary Xi Jinping and Premier Li Keqiang, and spared no efforts to ensure the work of the market supply of life necessities in the disaster areas.

We carried out the related work rapidly from four aspects. Firstly, we made the deployment timely. The Ministry of Commerce, together with the local commercial departments, has guided the wholesale market of farm and sideline products, large allocation and transportation enterprises and chain supermarkets to prepare enough stored vegetable, bottled drinking water and convenient food, and guided the commercial circulation enterprises and supply enterprises to make a good market supply of life necessities. Secondly, we strengthened market monitoring and early warning. We strengthened the market monitoring of life necessities, kept close connection with the market messenger in the disaster areas, grasped the variation of market supply and prices timely and accurately and released market information to the society through the media like the website, so as to guide the consumption of the residents and stabilize social expectation. At present, part of provinces like Zhejiang, Hubei and Hunan have launched the daily report mechanism of market monitoring of the life necessities market, and the other areas will launch the daily report monitoring in good time according to the changes of weather. Thirdly, we strengthened the ability of emergency response and supply ensuring. We made full use of the database of emergency goods of the Ministry of Commerce, and fully controlled the production, storage and consumption of the life necessities, emergency goods and flood prevention materials in the disaster areas. We made the preparation for emergency delivery, ensuring the stored materials needed in disaster relief could be delivered at the first time to increase market supply. Fourthly, we strengthened emergency duty. We had the “leader-work shift” rule and 24-hour emergency rule, so as to respond to the serious situations timely and strengthen the rapid response capacity of market supply ensuring.

According to the watchdog by MOFCOM, the life necessities’ supplies in disaster areas are ample. The prices of grain, edible oil and meat were steady, that of eggs picked up slightly and that of vegetable increased. The average prices of 30 kinds of vegetables in the wholesale markets in Anhui, Hubei and Guizhou grew up 5.5%, 5.5% and 4.7% respectively week on week, and the prices of Jiangxi, Guangxi and Hunan grew up 4.1%, 3.7% and 3.1% respectively week on week.

Next, MOFCOM will continue to work with the local commercial departments to strengthen market monitoring, dock sales and production, intensify emergency duty and ensure steady supply of life necessities in disaster areas.

III. Foreign Trade Remedy Investigation against China’s Exports in the first half of 2017

In the first half of 2017, China’s exports have been involved in 37 trade remedy investigations initiated by 15 countries and regions. Among these, there were 28 anti-dumping cases, 4 countervailing cases and 5 safeguard measures, with a total value of US$5.3 billion.

During the same period of last year, the number of trade remedy investigation cases that China had encountered hit a record high with a total of 65 cases, involving US$8.5 billion. In the first half of 2017, both quantity and value of trade remedy investigation cases that China has suffered decreased remarkably, but still staying at a high level with slight changes, compared with that over the same period of the last five years. .

In terms of countries, India and the US stood out with 12 and 11 cases respectively.

In terms of industry, light industry has the most trade remedy investigations with a total of 10 cases; the mechanical and electrical industry has 3 cases, involving US$2.3 billion and is the industry with the most value.

Although both quantity and value of the trade remedy investigation decreased over last year, it’s still at a high level since the global financial crisis. According to the Report on G20 Trade and Investment Measures jointly released by the WTO, OECD and UNCTAD, China is still the largest target country of trade remedy investigation.

We fight against the abuse of trade remedy measures. The international trade is mutually beneficial and the trade remedy measures should accord with the WTO rules and be restricted to compensating fair trade within a reasonable limit. We hope that all countries could eliminate frictions through negotiations and business cooperation, create sound environment for the world economic recovery and sustainable development and jointly build a community of common destiny for all mankind.

IV. Special Project on Regulating Foreign Labor Service Market Orders

Recently, MOFCOM issued the notification to launch the special project on regulating foreign labor service market, an order from the Ministry of Foreign Affairs, the Ministry of Public Security, the State-owned Assets Supervision and Administration Commission of the State Council and the State Administration for Industry and Commerce.

The dispatch of overseas labor service helps to increase people’s income and job opportunities, improve laborers’ technology and payment and encourage the entrepreneurship. According to the statistics, at present, the number of laborers dispatched overseas is about 930,000; among these, those dispatched for overseas contracted projects reached 370,000, and for labor service cooperation are about 560,000. By the end of May 2017, the number of various laborers dispatched overseas exceeded 8,680,000.

Meanwhile, we also noticed that some illegal phenomena still existed in overseas labor service cooperation. For example, there is illegal overseas labor service, or the so-called “black agent”; Some labor service companies delay paying wages and some overseas employers impair the legitimate rights of Chinese laborers, etc.

The special project mainly includes: 1. Strengthening the check on illegal behavior. MOFCOM will work with the relevant departments to conduct spot checks and examinations on enterprises for overseas contracted projects and labor service cooperation; 2. Intensifying industrial discipline. China International Contractors Association will increase support to uphold business order, smooth channels of public supervision and accept the complaint from overseas laborers through the complaint center of the dispatched overseas laborers; 3. Strengthening the punishment. We will deal with the problems of enterprises and persons in the principles of territorial management, which means “who dispatches, who charges”, according to laws and regulations.

We hope that the special project could further purify the environment of overseas labor service market, provide citizens who want to work overseas with legal channels, strengthen the protection for the legitimate rights of overseas laborers and form a new landscape of sound and orderly development of overseas contracted project and labor service cooperation.

That’s all information I’d like to share with you. Now I’d like to answer your questions.

CCTV-2: I have two questions. First, it is a global task to eliminate excess steel capacity. Under the framework of the G20, how will China work with other members to address steel overcapacity? What is the biggest challenge for us in the process? Second, President Xi emphasized at the Hangzhou Summit that China would further support the multilateral trading system and revive the twin engines of trade and investment. What fresh efforts and progress has China made towards this end? What’s China’s position at the Hamburg Summit?

Gao Feng: Thank you for your questions. I’d like to answer your second question first. At the Hangzhou Summit in 2016, thanks to China’s lead and the joint efforts of all the participants, the G20 set up a trade and investment cooperation mechanism and formulated the rules for the working group, offering long-term and stable institutional guarantee for trade and investment cooperation while significant outcomes for commercial cooperation were agreed, including the Guiding Principles for Global Investment and Strategy for Global Trade Growth, which translated China’s proposal into G20’s collective initiative and action, gave a push to G20 members’ efforts to improve global economic governance and made huge contributions to the development of an open world economy.

This year, with the impetus of China and the German presidency, the newly inaugurated G20 trade and investment mechanism has been running well on the whole and become a major pillar to G20 cooperation. So far, we have called three trade and investment working group meetings, with in-depth discussions on, among others, digital trade, investment facilitation and supporting the multilateral trading system with positive progress.

The Hamburg Summit comes at a time when the world economy is showing positive signs and strengthening momentum for growth but still faces uncertainties, instabilities and grave challenges. The pressing task before all the countries is to set the world economy on track of steady recovery, which calls for reviving the twin engines of trade and investment. As President Xi pointed out in Davos, ‘we must remain committed to developing global free trade and investment, promote trade and investment liberalization and facilitation through opening-up and say no to protectionism.’ We wish to work with all the parties to build on the consensuses of the Hangzhou Summit to further strengthen trade and investment cooperation, jointly take effective measures, explore new ideas and foster new sources of growth for economic globalization of openness, inclusiveness, universal preference, balance and win-win.

For this summit, we are looking to deliver positive outcomes on supporting the multilateral trading system and investment, including, among others, calling for the full implementation of the Trade Facilitation Agreement, working to make a success of the MC11 to be held at the end of the year and pushing the WTO to discuss new issues such as e-commerce and investment facilitation. Meanwhile, we hope the parties will continue to work from the basis of the Hangzhou consensuses to fight protectionism and preserve the open international trade and investment order.

Gao Feng: As for steel overcapacity, it’s actually a global issue. World leaders reached a major consensus in Hangzhou, calling on countries to take collective actions in a joint response and strengthen information sharing and cooperation by establishing a global forum on excess steel capacity. China has resolutely implemented the leaders’ consensuses at the Hangzhou Summit and conscientiously advanced and taken part in the agenda of the forum. The Chinese government takes steel overcapacity very seriously. It’s fair to say that in order to address the problem, China is the first to act with most concrete and best results, but has also paid a dear price. In 2016 China reduced its steel capacity on the ground by over 65 million tons. The plan for 2017 is to cut another 50 million tons. On the basis of the Hangzhou consensuses, China is willing to continue to share information and work with the parties through the Global Forum on Excess Steel Capacity in the principle of collective response to global problems. In fact, thanks to joint efforts, we have scored some positive results. The members of the Forum have all shared information on their progress in addressing steel overcapacity. Hopefully, the members will keep up the efforts and leverage the platform of the Forum to share best practices and experience in resolving excess capacity to the maximum. At the same time, we hope that other parties will follow China’s example by crafting and announcing clear targets and measures and taking concrete actions to jointly address global steel overcapacity and promote the stable and healthy development of the world’s steel sector and economy. Thank you.

CNR: We have noted that at the end of last month, the Central Leading Group on Comprehensively Deepening Reform set forth to hold China International Import Expo and improve statistical monitor of outbound business investment for strengthened regulation. Could you update us on MOFCOM’s steps in these areas?

Gao Feng: Thank you for your question. On Jun. 26th, the 36th session of the Central Leading Group on Comprehensively Deepening Reform reviewed and passed the Master Plan for China International Import Expo. To hold the Import Expo is a significant decision by the CPC Central Committee to push forward a new wave of high-level opening up and a major move on China’s part to proactively open up its markets to the world. The meeting calls for government guidance, market principles, and business operation to strengthened cooperation with other countries and international organizations and mobilize the initiative of departments, localities and businesses for a world-class expo.

At present, MOFCOM is following the overall deployment of the CPC Central Committee and the State Council to actively execute related work. We will keep you informed of any new progress.

The session also reviewed and adopted Several Opinions on Improving Overseas Businesses and Outbound Investment, demanding a unitary and efficient security system for overseas businesses and outbound investment. The Opinions offers the top-down design and direction for the next steps concerning the security for overseas businesses and outbound investment.

Over the years, as China pushes forward the Belt and Road initiative and deepens the building of an open economy, Chinese outbound investment has achieved steady and orderly development with profits from abroad expanding continuously. While Chinese enterprises exploit major opportunities of “going global”, they are also faced with mounting risks. The current interwoven conventional and non-conventional threats to security have called for a systematic mechanism to protect Chinese enterprises and investment overseas on a regular basis.

Going forward, MOFCOM will follow through the decisions by the Central Committee and the State Council and meet the requirements of the general national security concept. Together with other ministries, MOFCOM will start from improving statistics and monitoring as well as supervision of overseas enterprises and outbound investment, actively participating in making international investment rules and strengthening international safety cooperation. In doing so, we will guide enterprises to prevent and defuse all sorts of security risks abroad, handle emergencies, improve risk prevention and control system and enhance capability of service guarantee with a view to ensuring the safety of overseas Chinese enterprises and outbound investment and the stable, sound and sustainable development of China’s outbound investment. Thank you.

Shanghai Securities News: President Xi Jinping attended celebrations marking the 20th anniversary of Hong Kong’s return to the motherland last week. Could you please brief us on the cooperation outcome on trade and economic front between Hong Kong and the Mainland, and what steps MOFCOM will make next to promote the commercial cooperation?

Gao Feng: Thank you for the question. Over the past 20 years after Hong Kong’s return, the commercial exchanges and cooperation have gone from strength to strength. Hong Kong and the mainland have translated complementarity into win-win cooperation. The business cooperation has played an important role in securing Hong Kong’s position as the center of trade, shipping and finance and underpinned its economic and social prosperity and stability.

The Mainland has become Hong Kong’s largest and most important trade partner while Hong Kong is the Mainland’s sixth largest trading partner and fourth largest export market as well as the largest services trade partner. In terms of trade in goods, according to the Mainland customs, the import and export trade between Hong Kong and the Mainland totaled two trillion yuan in 2016, increasing by 3.8 fold over 1997 with an annual growth of 8.1%. Hong Kong SAR statistics show that the services trade grew from 231.3 billion HK dollars in 1997 to 532.4 billion HK dollars in 2015, registering an annual growth of 4.7%. Hong Kong ran a surplus of 89.1 HK dollars with mainland in services trade, compared to a previous deficit of 150.5 billion HK dollars.

With respect to two-way investment, since its return, Hong Kong has become the Mainland’s largest source of foreign investment and biggest destination of outbound investment. Hong Kong has always been the most important source of foreign capital for the Mainland. Over the past years, over 60% of the actually utilized foreign investment in the Mainland has come from Hong Kong, making the Mainland the most important investment market for the latter. By 2016, the Mainland had approved of nearly 400,000 Hong Kong investment projects, using 914.79 billion dollars in real terms, which accounts for 54.2% of the total FDI. The reform and opening up has provided an enormous market and business opportunities for Hong Kong and the Mainland to make investments, start businesses, transform and upgrade industries. In the meantime, Hong Kong is the largest destination for Mainland’s outbound FDI.

Over the past 20 years after its return, owing to the strong support of the central government and the Mainland, Hong Kong has maintained a good momentum of stable economic and social development, exhibiting the strong vitality of the One Country, Two Systems policy. MOFCOM has stayed committed to the policy, pressing ahead with deeper trade and economic cooperation. The Mainland and Hong Kong have become economically interdependent. Going forward, MOFCOM will adhere to the spirit of President Xi’s important speech at the conference celebrating the 20th anniversary of Hong Kong’s return and the 13th Five Year Plan, support Hong Kong’s involvement in the initiatives such as two-way opening up, Belt and Road initiative and the development of the Great Bay of Guangdong, Hong Kong and Macau, upgrade and implement CEPA agreements so as to fully leverage the policy dividends of CEPA, promote further integration of the two economies and achieve common development.

Phoenix Satellite Television: My first question is what fresh progress has been made for the China-US 100-day Plan while the clock is ticking. Many analysts said the recent steel and aluminum investigations initiated by the US are directed at China. You’ve also mentioned the US accounts for about 30% of the trade remedy investigations against China in the first half of this year. Does it suggest there is an unfavorable climate or even a possible setback for the 100-day Plan? My second question is how China views Japan’s inviting TPP members for a meeting in Japan this July?

Gao Feng: Thank you for your questions. First on the 100-day plan, early harvests have been achieved on economic cooperation by the two sides on May 12th, including ten outcomes. The early goals have implemented the important outcomes of the Mar-a-largo summit, sent a positive signal of addressing concerns through dialogues and shaped a good momentum of bilateral cooperation. China and the US are working on implementing the early goals and the US export of beef is a case in point. We’ve informed that the first batch of US beef has entered China market at the end of June.

The two sides are talking to each other intensively on the follow-up of the Plan to further enhance bilateral economic cooperation, expecting to make new progress.

We have proved through joint efforts that cooperation is the only right choice for China and the US. The two countries have the wisdom as well as capability to take care of each other’s concerns through friendly consultations, promote continued growth of bilateral trade and cross-investment, achieve win-win results and meet the shared aspirations of Chinese and American people for a better life.

With respect to your question concerning TPP, China has always been a proponent of multilateralism and committed to upholding the authority and effectiveness of multilateralism. Regarding regional trade arrangement, China has always advocated for open, transparent and win-win regional free trade. We are positive about open, inclusive and transparent regional trade arrangements that conform to WTO rules and facilitate regional economic integration.

China is working to put in place a high-standard FTA network that starts from the neighborhood, covers the Belt and Road countries and regions and stays open to the world. We are playing an active part in RCEP negotiations, striving to work with all parties for a modern, comprehensive, high quality and mutually beneficial regional trade agreement at an early date.

Gao: That’s all for today’s press conference. Thank you all.