Dear friends from the press,

Good morning, welcome to the regular press conference of the Ministry of Commerce (MOFCOM). First of all, I have two pieces of information to release.

II. The achievements of China’s absorption of foreign investment and outward investment since the 18th National Congress of the Communist Party of China

Under the strong leadership of the Central Committee of the Communist Party of China with Comrade Xi Jinping at its core since the 18th CPC National Congress, the MOFCOM has firmly adhered to the arrangements of the Central Party Committee. In absorption of foreign investment, MOFCOM has made special effort to deepen the reform of foreign capital management system, and by constantly expanding the access of foreign capital and facilitating the development of national economic and technological development zones and border economic cooperation zones, noticeable effects have been achieved. In outward investment, MOFCOM has deepened the reform of management system and innovated management services and support methods, while at the same time sturdily promoting the construction of overseas trade and economic cooperation zones, deepening international production capacity cooperation, ensuring the landing of major projects, strengthening in-and after-event supervision and improving risk prevention and control system. The outward investment achieved sound and orderly development.

In the past five years, China’s absorption of foreign investment mainly showed four major highlights:

1. The scale of foreign capital utilization remained stable. While the global transnational direct investment decreased by 2%, China’s actual use of foreign capital in 2016 reached up to 864.4 billion yuan, up 3% year on year. From 2013 to 2016, 101,000 foreign invested companies were newly established, and the actual introduction of foreign capital reached US$ 521.7 billion. China’s introduction of foreign capital has ranked the first among all developing countries for 25 consecutive years.

2. The quality of foreign capital utilization kept improving. Foreign capital flew more to the high and new technology industry with the proportion of foreign capital introduced to the industry reaching 19.1% in 2016, 5 percentage points higher than that in 2012. There are more than 2,400 research and development centers of transnational companies in China.

3. Fundamental changes appeared in foreign capital management system. The establishment and alteration items of foreign-invested enterprises that are free from special management measures for access will be changed into filing management from examination and approval, getting rid of the case-by-case examination and approval system and realizing the significant transformation of management idea, mode and system.

4. The contribution to national economy increased. In 2016, the fixed-asset investment of foreign-invested enterprises increased by 15.6%, 7.5 percentage points higher than national average growth. The export of foreign-invested enterprises and the tax payment accounted for 43.7% and 18.3% of the nation total respectively, the employment took up 9.9% of the total employment in the urban areas and the profits of industrial enterprises above designated size reached 25.2% of the nation total. The number of foreign-invested enterprises took up only 3% of all the enterprises nationwide while creating nearly half of the foreign trade and one fifth of the financial revenue.

In the past five years, China’s foreign investment mainly showed the three following highlights:

1. The scale of “going out” was expanded. In 2016, our foreign investment outflow took the second place globally for two consecutive years. Up to the end of 2016, our foreign direct investment stock was over US$1.3 trillion and the total overseas assets amounted to US$5 trillion. From 2012 to 2016, the turnover of the overseas contracted projects amounted to US$710 billion, with an annual average increase of 9%, and China has become one of the world’s major overseas contractual projects powers. Up to the first half of 2017, the Chinese enterprises accumulatively invested US$28.99 billion in 97 overseas trade and economic cooperation regions from 44 countries, attracting 3,825 enterprises to enter into the zone, paying the taxes of US$3.09 billion to the host countries and creating 240,000 employment positions in the local regions.

2. The level of enterprises’ international operation has improved constantly. From 2012-2016, the overseas sales revenue of China’s enterprises through foreign investment cooperation reached up to US$7.2 trillion yuan, driving US$1.9 trillion export. Transnational mergers and acquisitions (M&A) become the main channel for the overseas Chinese enterprises to acquire foreign high-quality resources and offset their weakness. In 2016, the outbound investment of M&A amounted to US$86.5 billion, accounting for 44.1% of the total investment amount.

3. The international layout of industries was accelerated. In the context of the increasing domestic factor cost, exploring international market and taking advantage of these two resources have become the inevitable choice of our industrialization. In 2016, the foreign investment of China’s manufacturing industry amounted to US$29.05 billion, up 45.3% year on year. The leading enterprises in steel, cement, non-ferrous, automobile, machinery, textile and chemical engineering sectors set up production bases overseas, which has stably promoted international capacity cooperation. In 2016, there were 482 big overseas contractual projects whose value was over hundreds of millions dollars, spurring the going out of China’s equipment, technology, criterion and services.

Next, we will continue to implement the decisions and arrangements of the CPC and the State Council, and further expand the open areas, build a business environment that will favor, enrich and comfort the businessmen, and forge the main front of foreign capital absorption and the new highland of reform and opening-up. At the same time, we will continue to promote foreign investment, engineering contract and labor service cooperation, and encourage the qualified Chinese enterprises to go out, promoting the development while warding off risks. We will strive to improve the Chinese enterprises’ international operation level and enhance their capacity to coordinate domestic and international markets and resources.

II. About the 122nd China Import and Export Fair

The 122nd China Import and Export Fair, also known as the Canton Fair, will be open on October 15 in Guangzhou. The Fair will be held in three phases with a total exhibition area of 1.185 million square meters and 60,466 booths. There are more than 25,000 exhibiting companies from home and abroad.

The Canton Fair will comprehensively implement and follow the important spirit according to President Xi Jinping’s congratulation letter and Premier Li Keqiang’s instructions, carrying out the new development concepts and improving the level of globalization, specialization, marketization and informatization from all respects. We will also upgrade Smart Canton Fair and Green Canton Fair and give full play to its role as a compressive platform opening to the outside world in order to embrace the successful convening of the 19th National Congress of the Communist Party of China with excellent achievements

This Canton Fair will mainly present the following three highlights:

1. We will give play to its role as a comprehensive platform to transform and update foreign trade. We will focus on the need of enterprises and market, and elaborately organize the selection of CF Awards and enrich the docking service for design. The conferences and forums on 8 themes will be held to work as a multifunctional and comprehensive platform and will encourage companies to take the path of innovation. We will strengthen IPR protection and promote the building of self-developed brand and fully demonstrate its image as a window of China’s IPR protection.

2. We will comprehensively upgrade the quality of the expo with specialization as its core. We will optimize the product zones by dividing the sections and further nurture new topics to attract the leading and high-tech enterprises to participate in this expo. We will speed up the construction of the Smart Canton Fair, promote the integration of the online and offline services and strengthen the interactive experience function between exhibitors and purchasers. We’ve issued and implemented the Canton Fair Green Development Plan 2.0 to facilitate the achievements of the green development and set up the Canton Fair’s green development system which is systematic, standardized, information-based. Its aim is to lead the nationwide exhibition industry to follow the direction of the green environment and low carbon energy conservation.

3. We will lighten the enterprises’ burden and support the foreign trade development in the poverty-stricken areas. We will collect booth fee in accordance with the reduced standard and reduce and cancel the fee of 23 services to relieve the exhibitors’ burden. At the same time, we’ve cancelled the booth fee for exhibitors from 839 poverty-stricken counties and Quannan County (to which the Ministry of Commerce provides assistance) and set up the Traditional Chinese Specialties section.

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

China News Service: We have noticed that the US Department of Commerce announced recently that it would defer the issuance of the preliminary antidumping duty determination on aluminum foil from China. The deferral will allow the Commerce Department to fully analyze information pertaining to China’s status as a non-market economy (NME) country. What is the comment of the Ministry of Commerce on this? Thank you.

Gao Feng: We take note of the relevant announcement by the US. What I want to stress is that the concept of the so-called non-market economy country does not exist in multilateral rules under the WTO. It is merely the domestic product of a few members during the Cold War. Few out of the 164 WTO members has such domestic law. This should not be confused with the comprehensive and thorough implementation of international treaty obligations under the WTO. As part of the WTO Agreement, which is an international treaty, the Article 15 of the Protocol on the Accession of China specifically provides that the practice of calculating dumping margins based on the price of a surrogate country in anti-dumping investigations against China shall expire from December 11, 2016. This is clear and indisputable. All WTO members should honor their commitments, strictly abide by rules of international law and earnestly fulfill their international treaty obligations.

Next year marks the 40th anniversary of China’s reform and opening up. In nearly 40 years, China has been deepening reforms and expanding opening up on all fronts. The Third Plenary Session of the 18th CPC Central Committee further pointed out that the market should play a decisive role in resources allocation. China has made impressive achievements in developing market economy and embarked on a journey developing market economy with Chinese characteristics in line with China’s reality and national conditions. We will continue this journey and constantly improve and develop socialist market economy with Chinese characteristics.

China Radio International: We have noticed that the US recently launched several anti-dumping investigations against China and US President Trump will pay an official visit to China next month. Just now, we have mentioned that the US Department of Commerce would defer the issuance of the preliminary antidumping duty determination on aluminum foil from China. What is your view on the current economic relations and trade between China and the US? Thank you.

Gao Feng: After more than thirty years since China and the US established diplomatic relations, their economic ties and trade have developed quickly, with their interests highly intertwined. Their trade and economic ties have become the “ballast” and “propeller” for bilateral relations. Since the successful Mar-a-Lago meeting between China and US leaders in April, the two sides have worked together for important outcomes of the 100-day plan. The first China-US Comprehensive Economic Dialogue was also successful, creating positive energy for the healthy and stable development of bilateral trade and economic ties.

We believe that in developing China-US economic relations and trade, firstly, the two sides should work to expand cooperation. The cooperation potential is huge and the outlook is bright. In the spirit of mutual respect, cooperation and win-win results, we are ready to make efforts to accommodate mutual concerns, create favorable environment for two-way trade, investment and cooperation and bring concrete and huge benefits to the two countries and peoples. Secondly, the two sides should appropriately manage and control differences. As the scale of China-US economic cooperation and trade gradually expands, the two sides should always maintain consultation and communication and resolve frictions and differences in bilateral trade and economic ties through dialogue and cooperation so as to keep bilateral trade and economic ties proceeding on the right track.

The essence of China-US economic relations and trade is mutual benefit and win-win results. Both China and the US should cherish hard-earned outcomes and join hands to maintain current cooperation to benefit peoples of the two countries. Thank you.

National Business Daily: At the present, the central government emphasizes taking initiatives. How could Free Trade Zones give full play to entrepreneurship? Thank you.

Gao Feng: Entrepreneurs are the main players of economic activities. Pushing forward a new round of high-level opening-up also needs to encourage entrepreneurship. The Free Trade Zones, as test fields of reform and opening up in the new era, are actively exploring systems and institutions through comprehensively deepening reforms. For example, reform of investment system centered on negative list management model, innovation of trade regulation system focusing on trade facilitation, financial opening up and innovations aiming to better serve the real economy at a higher standard, building interim and post-supervision system with the bottom line of preventing and controlling risks and developing public service systems that encourage start-ups and innovation, etc. I believe these will all inspire entrepreneurship and strengthen vitality and innovative capabilities of companies so as to vitalize the huge market potential for sound economic development. Thank you.

Financial Times: We know that the innovative upgrading of consumption was evident in the “golden week” of national holiday that has just passed. What policies and measures will MOFCOM introduce to transform and upgrade consumption? Thank you.

Gao Feng: Like what you have mentioned, during this “golden week” of national holiday, the sales in the national market maintained stable and fast growth. The traditional consumption has been upgraded with improved quality, while emerging consumption enjoys diversified highlights. According to MOFCOM monitoring, in October 1-8, the national retail and catering sales was about RMB 1.5 trillion and the daily average sales increased by 10.3% from the “golden week” last year. Through pushing forward supply-side structural reform and speeding up innovations of domestic trade circulation system, China’s structure of consumption supply and demand is constantly upgraded, consumer demand of urban and rural residents increased and people’s sense of gain gradually heightened.

Going forward, we will continue to promote transformation and upgrade of consumption from four aspects to let consumption play a bigger role in driving economic growth. First, stepping up the supply of quality goods. We will deepen the development and protection of China Time-honored Brand, build special business streets, and encourage e-commerce platforms and retailers to establish quality departments and shops, integrating famous brands and popular shops and widening the sales channel for quality goods. Second, improving life services for people. We will combine internet and services sector, promote the new model of internet + life services, and create a smart life style. We will put into practice a project to ensure reliable home services, grow green catering business and make saving food a long-term work. Third, enhancing services for consumption information. We will compile relevant indexes and indicators that are consistent with Chinese national conditions and international standards and monitor the market and guide consumption. Based on the commercial forecast platform, we will release more consumption information to better serve businesses and guide consumption. Fourth, making consumption environment better and better. We will speed up formulation of the credit system and joint mechanism for award and punishment in commercial area, expand the coverage of traceability system for major goods, reinforce comprehensive administrative enforcement, deal with prominent issues in consumption climate, and create a safe, reliable, fair and convenient atmosphere. Thank you.

Phoenix Satellite Television: We’ve noted that on October 3, EU member states, the Commission and the EU Parliament reached an agreement that while treating WTO members in the same way, they would introduce a different methodology for calculating dumping margins in the case of significant market distortions under pervasive state’s influence. Some analysts argued the methodology was targeted at China. What’s your comment? Thank you.

Gao Feng: We’ve noticed the EU Parliament, the Council and the Commission agreed to change the EU’s anti-dumping and anti-subsidy legislation. China approves of the EU’s recognition of the expiry of the Article 15 in China’s WTO accession protocol and the EU’s action to fulfill its WTO obligation through changing relevant laws and abolishing the list of non-market economy nations.

However, we’ve also noted the introduction of the concept and criteria of the so called “significant market distortions”. In fact, there is no such concept in the WTO anti-dumping rules or clause concerning environment and labor dumping. The EU’s practice lacks foundation in WTO rules and will disrupt the anti-dumping legal framework in the WTO, adding uncertainty to the application of rules.

We urge the EU side to strictly abide by the WTO rules, comprehensively fulfill its international obligations in good faith, and uphold the authority of the WTO. We will watch closely EU’s next steps and take proper measures when necessary so as to firmly safeguard the legitimate rights and interests of China. Thank you.

Global Times: On Tuesday, the US International Trade Commission held a hearing on China’s intellectual property rights, where some US companies and trade associations accused Chinese enterprises of stealing their ideas and software and complained being forced to transfer patents to Chinese enterprises as a condition for doing business in China. They underlined the loss of hundreds of billions of dollars and millions of jobs in the US science and technology industry due to these IPR issues. What’s the comment of MOFCOM? Thank you.

Gao Feng: We’ve noticed the news about the hearing. According to our information, the China Chamber of International Commerce submitted over 700 pages of opinions, comments, and relevant evidence to the USTR office on behalf of Chinese business community. At the hearing the USTR office held on October 10, companies truly questioning China’s IPR protection were rare. Some companies and industrial associations even called for caution and prudence on the side of US government with a view to keeping the sound and stable China-US commercial relations from harm.

I want to reaffirm that China always sets great store by IPR protection and opposes any form of unilateralism and protectionism. I hope the US can bear in mind the big picture of China-US trade ties, give full consideration to the voices of all stakeholders, respect facts and multilateral trading rules and proceed with caution. China will keep a close eye on the progress of investigations and take necessary measures when time is right to firmly protect China’s legitimate rights. Thank you.
　　
Due to time constraint, the last question please.

Xinhua News Agency: The Associated Press reported that a research by AidData, a lab at the College of William & Mary pointed outChina gave or lent $354.4 billion in the 15 years ending in 2014 in Africa, Asia and elsewhere, compared with $394.6 billion for the United States. The report argued China was closing to matching the US as a source of official grants and loans to developing countries but much of these seemed to spur China’s export credit, serve its own economic interests and yield scant benefits for recipients. What’s your comment?

Gao Feng: China has long been committed to providing assistance for other countries to its best capacity under the South-South cooperation framework. It helps other developing countries just as they do for China. Such assistance is given in principles of equity, mutual benefit, no political strings and no interfering domestic affairs in recipient countries. This report may confuse Chinese official assistance with other sorts of financing, including commercial loans. China’s foreign aid mainly goes to the most-needed areas in the recipient countries, like agriculture, health care, education, infrastructure and other scopes, which has served the development of local economy and society, enhance their self-development capacity of economic growth and bring benefits to the local communities. Thank you.

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