MASTV: I have a question on China-LAC cooperation. In his speech prior to the visit to Latin America, US state secretary characterized China as a “new imperialist power”, referring to its investment and commercial activities in Latin America. How would you respond to that? Would you please tell us how China has contributed to the economy of Latin America through investment and other commercial cooperation? Thank you.

Gao Feng: I’d like to give an overview about China-LAC cooperation. According to China Customs, trade between China and LAC reached USD 260 billion in 2017, up by 18.8%. China is an important importer of commodities from Latin America, and is importing more and more agricultural and industrial goods. The bilateral trade structure is being improved. According to MOFCOM statistics, China has invested over USD 200 billion to LACs, taking it as the second largest overseas investment destination.

MASTV: I have a question on China-LAC cooperation. In his speech prior to the visit to Latin America, US state secretary characterized China as a “new imperialist power”, referring to its investment and commercial activities in Latin America. How would you respond to that? Would you please tell us how China has contributed to the economy of Latin America through investment and other commercial cooperation? Thank you.

Gao Feng: I’d like to give an overview about China-LAC cooperation. According to China Customs, trade between China and LAC reached USD 260 billion in 2017, up by 18.8%. China is an important importer of commodities from Latin America, and is importing more and more agricultural and industrial goods. The bilateral trade structure is being improved. According to MOFCOM statistics, China has invested over USD 200 billion to LACs, taking it as the second largest overseas investment destination.

I have another set of figures to share with you. According to CEPAL, China has become the second largest trading partner of Latin America since 2014. Between 2000 and 2017, Latin America’s export to China grew from 1% of its total export to 10%, making China its third largest export market. Import from China grew from 2% of its total import to 18%, making China the second largest source of import.

In terms of investment, between 2005 and 2016, LACs received USD 90 billion direct investment from China according to CEPAL, taking up 5% of its total FDI. It is estimated that direct investment from China will be over USD 25 billion in LACs in 2017, taking up 15% of its total FDI.

China is investing in more diverse areas in Latin America. From 2004 to 2010, 42% and 18% of China’s investment went to mining and energy sector. From 2011 to 2017, the percentage dropped to 20% and 6%. China is investing more in telecommunications, real estate, food, and renewables, which has helped improve the local infrastructure and provide more options to local consumers.

I’d like to point out that the remarks of the US are a distortion of the reality. Its support of the Monroe Doctrine is met with widespread criticism from LACs.

I’d like to underline that China-LAC commercial cooperation is win-win, with no strings attached. We follow the principle of extensive consultation, joint contribution and shared benefits. The cooperation is carried out on an equal and reciprocal basis, not at the expense of any party’s interests. We are open to cooperation with all parties, including the US, to drive the economic development in Latin America. As the Chinese economy transitions to a phase of high-quality development, we are ready to work together to deliver the same quality development for China-LAC commercial cooperation, build a community of share future, and achieve common development and prosperity. Thank you.

China News Service: We noted that the US has frequently started trade remedy investigations into rubber bands and fuel pumps assemblies from China. What’s your comment? What are China’s expectations for the upcoming result of the 301 investigation?

We noted that the US has started a growing number of trade remedy investigations into Chinese products recently. China is concerned about that.

We believe trade remedy should be the last resort to protect domestic industries in international trade, not a tool for trade protectionism. The investigators should employ remedy measures with restraint, not abuse them. We would like to work with the US to properly manage the differences in trade and economic matters, expand cooperation and narrow the differences. The trade frictions should not become storms that prevent the giant vessel of bilateral cooperation from plain sailing.

As for the 301 investigation, China has always taken the position that we are against such unilateral and protectionist practice. We hope for prudent handling from the US so as to preserve the big picture of the bilateral commercial cooperation. Thank you.

CRI: My question is related to the United States. This week, we noted MOFCOM launched an anti-dumping and anti-subsidy investigation into imports of sorghum imported from the US. Could you give more details of the investigation? Will China launch more investigations into other products from the US? We have heard some people saying it is China fighting back against US investigations into its products. What do you make of it? Does it mean China will not flinch from taking tough measures to respond to trade frictions? Thank you.

Gao Feng: I’d like to share with you an array of data concerning the sorghum case. According to statistics of Chinese Customs, China imported 5.869 million tonnes of sorghum grown in the US in 2016, up from 317,000 tonnes in 2013. The market share of American sorghum jumped from 8% in 2013 to 61% in 2016. In the meantime, the price of imported sorghum from the US has edged down from 289.61 dollars per tonne in 2013 to 214.78 dollars per tonne in 2016. From January to October last year, the price of sorghum imported from the US dropped below 200 dollars per tonne, which stood at 198.76 dollars per tonne. Due to the flood of cheap imports, Chinese industry has been damaged in terms of production and financial condition. The investigating authority will conduct further research and analysis.

I want to stress that it is a normal trade remedy case. China always opposes arbitrary methods and abuse of trade remedy measures. We will carry out trade remedy in accordance with WTO rules and Chinese laws. We also hope relevant WTO members can observe international rules, properly resolve differences on trade and economic issues through dialogues and cooperation and realize common development of industries of both sides. Thank you.

Shanghai Securities News: On February 4, the CPC Central Committee and the State Council issued the Opinions on Implementing Rural Vitalization Strategy. What measures will MOFCOM take to put the Opinions into practice?

Gao Feng: In order to implement the rural vitalization strategy, we will stick to the principle of using markets and resources at home and abroad and promote high-quality economic growth in rural areas.

With respect to domestic markets, we will put in place a full-fledged modern market system, where commerce in urban and rural areas is integrated to boost rural development. First, we will promote connectivity between agriculture and commerce and keep distribution channels unimpeded. For example, we will encourage distributing enterprises to team up with new type of agricultural business to forge a new model of partnership. And we will speed up our work of strengthening cold chain logistics for agro produces. The aim of these measures is to enable quality agro produces to enter urban markets faster and generate more profits for farmers as well as to provide good and affordable products for our people. Second, we will promote rural e-commerce so that it can play its role in vitalizing rural areas. We will keep improving the fundamental environment for developing rural e-commerce such as hardware infrastructure, services network, talents, and others. We will bring production material, industrial products and modern services to the country and more agro produces to the city so that farmers have a stronger sense of fulfillment and happiness.

We will work towards the general goal of building a trader of quality and make new ground in opening up in rural areas so as to promote rural vitalization. First, we will perfect China’s agricultural trade policy system. For example, we will launch a program to enhance exports of featured and competitive agro produces with high added value. Second, we will encourage competent agro businesses to go global and make better use of international agricultural resources. Through new model of investment and overseas operation, they will be able to climb up the global value chain in agriculture. Third, we will raise China’s voice in international trade system on the front of agriculture. We will actively participate in multilateral, plurilateral and bilateral agricultural negotiations with a view to building a favorable international climate and safeguard the security of Chinese agriculture. Thank you.

China Business News: About China’s trade surplus with the US. According to reports on global value chains by international organizations, despite its relatively huge goods trade surplus with the US, China’s industry remains at the medium to low end of the GVCs. When it comes to value added in trade, the overall benefits for China and the US are balanced. It is even possible that China does not benefit as much as imagined. Is there a more efficient mechanism between China and the US to discuss how to address the asymmetry of information on trade benefits? Thank you.

Gao Feng: According to my understanding, this is about the global value chains. Experts at the WTO, OECD and other international organizations hold that breaking down benefits China and the US enjoy from bilateral trade from the perspective of global value chains can present a holistic and objective picture. The Chinese Academy of Science estimates that China’s trade surplus with the US between 2010 and 2013, by trade in value added, is 48% to 56% less than that measured by traditional methods. The trade surplus China has with the US is complementary one. Take a look at the total trade volume including goods, services and overseas sales by multinationals. Overall speaking, China and the US benefit from bilateral trade in a balanced way.

Experts on China-US trade agree that to improve and use TiVA statistics is helpful to understand trade benefits in a more unbiased and rational way. China and the US are jointly leading the work of building OECD TiVA database which is scheduled to be set up before the end of this year. Once established, it will show a clearer picture of interwoven interests among Asia-Pacific countries along the value chains. Over the past few years, China and the US have worked closely on the program. Progress has been made. It has become a bright spot in China-US cooperation, which fully speaks to the win-win relationship in global value chains. We hope to have more similar mechanisms of consultation, cooperation and information sharing so as to keep global trade on the right track and bring benefits to more people. Thank you.

CEIS, Xinhua News Agency: There has been report that MOFCOM met with associations for agricultural products such as soya beans for information of the market and of ADCVD investigations against products like soya and cotton. Is this true and was it related to the escalation of China-US trade frictions?

Gao Feng: We did have meetings with some enterprises importing and exporting agricultural products, whose primary purpose was to inform us of conditions in agricultural trade for better analysis. It is not related to the trade frictions between China and the US that you mentioned.

During the study some enterprises did mention agricultural trade between China and the US, and some of them, especially production enterprises, expressed concerns about importing agricultural products.

We continue to encourage Chinese enterprises to engage in cooperation worldwide, to turn quarrels into mutual benefit and obstruction to motivation, dissolving differences in cooperation. I hope countries can work with China to together promote bilateral trade relations and common development. Thank you.

Global Times: There has been report that WTO documents showed that China appealed against high tariffs imposed by the US on imported solar panels and washing machines, and requested consultation with the US on compensation. Is this true and can you tell us more about China’s appeal? How much are we asking for compensation? What will MOFCOM do next? Why didn’t China immediately request for compensation at the WTO DSB like Korea did, but chose to consult with the US after some time? Thank you.

Gao: The US announced the concerned safeguards on January 22, which came into effect on February 7. China requested consultation with the US regarding this case on February 6 through the Chinese Delegation to the WTO, in conformity with WTO rules.

According to WTO Safeguards Agreement, all stakeholders can request consultations with the applying member on the contents of the measure and trade compensation. It is a procedural rule.

China and the US are working on the timing for such consultations. According to our knowledge, the Korean practice that you just mentioned is the same as what we are taking. Based on the result of consultations China will take appropriate measures under the WTO framework to safeguard its lawful rights without hesitation. Thank you.

Economic Daily: There has been reports that China is cautious about entering substantive trade agreements with the UK at the current stage, because Brexit is sensitive and that China does not want to cross the EU. Is that true and does China wish to wait till Britain quits the EU to formally start FTA negotiations with the UK?

Gao Feng: China and the UK are important trade partners, and a stronger partnership is in both our interests. We wish to work with the UK to explore possible courses for our bilateral trade, plan together for an arrangement for our future trade relations and raise our commercial ties onto a new stage thorough full exploitation of the China-UK Joint Trade and Economic Committee and Trade Working Group, while sticking to relevant regional economic and legal regimes. Thank you.

The press conference has to stop here due to time constraints.

The Chinese Spring Festival will soon arrive. On behalf of the Press Office of MOFCOM, I wish you a happy Spring Festival, health and prosperity. Thank you very much.