CCTV: US media believe that the opening-up measures announced by President Xi Jinping at the Boao Forum for Asia represent a response to US’ accusations and a concession to the US. What’s MOFCOM’s comment? Thank you.

Gao Feng: Such argument is totally muddying the waters. The major opening-up measures China has announced are critical strategic decisions made on the basis of accurate assessment of China’s development at the current stage with a view to bringing opening-up to a higher level in the new era. These measures meet the demand of China’s own development. It has nothing to do with trade frictions between China and the US.

Over the past 40 years since reform and opening up began, China made remarkable achievements. We are keenly aware that only through reform and opening up can China develop itself. This is our basic state policy as well as China’s duty to global growth.

These important opening-up measures are initiated by China of its own accord in a hope that all countries around the world can board the express train of Chinese economy. We don’t hope to see some people in the US misjudge the situation. China’s opening up will not be disturbed by any external pressure. We will follow the charted course in our own pace. Thank you.

Economic Daily: White House Press Secretary Sarah Sanders said at a press briefing the US is encouraged by President Xi's speech at the Boao Forum, but at the same time, the US wants to see concrete actions from China, and it’s going to continue moving forward in the process and in the negotiations until those happen. She said the commitment is a sign in “moving in the right direction” but not enough to stop President Trump from considering imposing tariffs on US $150 billion of imports from China as a punishment for what the White House called theft of intellectual property rights by China. What’s your comment?

Gao Feng: We’ve noticed these arguments from the US. First of all, let me be clear that President Xi Jinping’s important speech at the Boao Forum has been widely echoed by the international community, including the US. In the context of global economic recovery and rising trade protectionism, China does not choose to step back or close its door, let alone opt for protectionism in the face of challenge. On the contrary, we open the door even wider in a more resolute manner, which fully demonstrates that China is a responsible country. We hope to work with the rest of the world to build an open international economic system at a higher level and achieve mutual benefits, win-win results and common development.

We’d like to advise the US to understand what’s happening in the world and not to go down the wrong path or threaten China by unilateralism and trade protectionism. China is unswervingly determined and confident in upholding the interests of itself and its people. We are fully geared up and will not hesitate to fight back should there be any action by the US that may lead to escalation of the situation.

CGTN: My question is also related to President Xi Jinping’s remarks at the Boao Forum. He mentioned China will seek faster progress toward joining the Government Procurement Agreement, a trade agreement under the WTO whose participants open their government procurement markets. What’s MOFCOM’s specific plan to push forward this process and is there a clear timetable?

Gao Feng: China started negotiations on joining the GPA in 2007. It is a big step towards deepening reform and furthering opening up and will bring an enormous market to other WTO members. To have China in the GPA is a win-win to relevant parties.

Since the negotiations kicked off, China has made positive efforts and provided six offers with gradually widening opening-up areas. In order to speed up the process, China will give full consideration to its domestic process of reform and opening up and the requests by participants and expedite drafting a new better offer which will be submitted to the WTO as soon as possible.

China will continue to seek faster progress in joining the GPA, but at the same time all negotiating parties should be practical so that we can work together to conclude the negotiations as early as possible.

CRI: We have taken note that US President Donald Trump recently tweeted that he is very grateful to President Xi Jinping for his kind words on tariffs and barriers to automobile trade, and for his enlightening remarks on intellectual property and technology transfer, and that US and China will make great progress together. Such a statement is seen as a sign of a softening of US attitude. How does the Ministry of Commerce view this statement, and whether China and the United States have reached any consensus in the negotiations?

Gao Feng: First of all, I would like to clarify that so far there has been no negotiation at any level on the issue of trade frictions between China and the United States. Regarding the statement made by the US side, we will listen to what they say and see what they do. Thank you.

Reuters: First question, China recently said that under the current circumstances, it is very difficult to have negotiations with the United States on the issue of trade frictions. What should the United States say or do in order to allow the two sides to come to the negotiating table? Second question, although President Xi Jinping said at the Boao Forum that China will further expand opening up, critics say that the proposed measures are not specific, and none of them are new. How does MOFCOM respond to such criticism? Third question, President Xi also mentioned that there will be a reduction in tariffs on automobiles and a range of products. Is there a specific timetable and when will the tariff reduction be implemented?

Gao Feng: On your first question, I would like to emphasize that it is not a question of whether China is willing to participate in the negotiations, but rather of the US side showing no sincerity at all for negotiations. The US side first published a list of US $50 billion of products for additional tariffs under the Section 301 investigations, and then very unjustifiably proposed another US $100 billion worth of products for additional tariffs. Such is typical unilateralism and trade protectionism. It is impossible for China to conduct any negotiations under unilateral coercion.

On your second question, I think some of the accusations or criticisms are completely baseless. The major measures announced by the Chinese side to expand opening up, either in terms of the areas of opening up, the measures of opening up or the pace of opening up, are all very specific and practical. It is fair to say that each sentence in the announcement has very rich connotations and fully demonstrates China’s determination and confidence in promoting a new round of high-level opening up to the outside world. China is always true in its words and resolute in its deed. For example, in creating a more attractive investment environment, the Ministry of Commerce is working with relevant departments to put forward a package of policies and measures to improve the negative list management system, open wider to the outside world, optimize the environment for foreign investment, and promote high-quality economic development. Particularly in the first half of this year, we will strive to complete the revision of the negative list for foreign investment as soon as possible.

With regard to the question you mentioned on tariff reductions for imported products, relevant authorities have already indicated that they will put forward concrete plans to reduce tariffs as soon as possible with a view to implementing them at an early date.

CNR: We have taken note of some media reports saying that the European Union and Japan have followed closely the pace of United States in the Section 301 investigations, and have made submissions to the WTO to join the US request for consultations on China’s intellectual property rights. How should we view such actions by the EU and Japan? And what is China’s position and how will China respond? Thank you.

Gao Feng: Recently, China has indeed received requests from Japan, the European Union and other WTO members for their joining the US-led consultations with China at WTO over technology licensing requirements. Under WTO rules, a member may apply to join the consultations if it considers that the case concerns its substantive trade interests. Going forward China will appropriately address the application of individual WTO members for joining the consultations in accordance with WTO rules and dispute settlement procedures.

Xinhua News Agency: On China-US trade frictions, China has said that both China and the United States are members of the WTO, and that disputes and frictions should be dealt with under WTO principles. The Chinese side has expressed its willingness to consult over and resolve problems and differences in this way. I would like to ask the spokesperson, what do you think is the possibility of China and the US negotiating under the WTO framework?

Gao Feng: The China-US trade frictions are entirely a provocation of the US side. As a member of the WTO, the US has from the outset abandoned the WTO, abandoned multilateral rules and opted for unilateralism and protectionism. The US has launched the Section 301 investigations against China under its domestic law, and threatened to impose additional import tariffs on Chinese products, which seriously undermines the authority of the multilateral trading system and the unity of the WTO.

China has always been a staunch defender of the multilateral trading system. China resolutely opposes unilateralism and upholds multilateral rules. At the same time, we will take all appropriate measures and resolutely fight back against any infringement of China’s rights and interests. As for the possibility of negotiations between the two sides under the framework of the WTO, it depends on whether the US still respects the WTO and abides by the multilateral rules.

Phoenix Satellite TV: We’ve noted that the US has announced tariffs on an additional US $100 billion worth of Chinese imports. Will China respond with further tariff hikes? If the US continues to widen the tariff scope, will China follow with further actions? According to some analysis, China had a big trade surplus with the US in 2017. If this tit-for-tat approach continues, the US might have greater leverage. What’s your comment? Thank you.

Gao Feng: As was said earlier, with bottom-line thinking, China has prepared for potential escalations and drawn up a package of countermeasures. We don’t want to pick fight but are not afraid to fight. We’ll do whatever it takes and rules out no option to defend the interests of the country and the people. China’s ability and confidence are out of question. We’ll walk the talk. Thank you.

Global Times English Version: As the US imposes sanctions on China, it also indicates its willingness to hold trade talks. Have the US and China started trade negotiations? How is the consultation going? What are China’s expectations? If the talks are yet to take place, is there any chance of a negotiation going forward? Thank you?

Gao Feng: As I said earlier, at present, the economic and financial officials of the two sides are not having any negotiations on trade frictions. We take a highly principled approach to negotiations. If the US willfully pursues unilateralism and trade protectionism, China will fight resolutely till the end.

Economic Information Daily: With respect to Made in China 2025, we’ve noted that the US accuses China of forcing US technology transfer to Chinese companies through foreign ownership restrictions and of guiding Chinese business in systematic investment in and acquisition of US firms in a bottom-up government-driven bid to develop technology. The US also argues that the four steps outlined by the initiative to introduce, digest, absorb and re-innovate on foreign technologies are all about a close partnership between the Chinese government and industry exploiting foreign technologies. What’s your comment on that? Is there any room for negotiation between China and the US on these issues? Thank you.

Gao Feng: US accusations are foundless. In the spirit of open development, cooperation and win-win, China launched the Made in China 2025 initiative, which is open, transparent and by nature a strategic plan for industrial upgrade. It is a common practice across the world, including the US to formulate and implement similar strategic programs, such as the Revitalize American Manufacturing and Innovation Act, the Advanced Manufacturing Partnership, National Strategic Plan for Advanced Manufacturing and USA National Network for Manufacturing Innovation.

As for the so-called forced technology transfer to Chinese firms, China’s foreign investment administration rules never require foreign-invested companies to involuntarily transfer their technology to Chinese joint-ventures or JV partners, nor do Made in China 2025 and related policies. Whether to develop their own technology or acquire technology through business cooperation is the company’s own decision. The Chinese government never interferes and won’t make restrictive provisions.

With regard to government-led systematic acquisition of and investment in US companies, the outbound investment and M&As of Chinese business have grown fast in recent years as a result of China’s economic upgrade, rising business strength and competitiveness and their increasing internationalization. These are independent decisions to explore the international market and enhance innovation capability. By promoting business going global and the internationalization of manufacturing, the initiative underlines government encouragement for exploring the international market and participation in international competition. Such guidance in principle and direction is not against WTO rules.

I want to emphasize the related policies of the initiative apply to all players in the Chinese market. The Chinese government has set up a review regime for fair play as an institutional constraint on departmental and local policies aimed at excluding and restricting competition. Several US companies have joined the initiative. We encourage all innovation equally.

President Xi Jinping makes it clear that innovation is the primary driver of development. China fully recognizes its significance for future development. We’ll steadfastly implement the initiative in an open environment, stay the course of innovation-driven development, and strengthen IPR protection to create more better new technologies and products for mutual benefit and win-win with the rest of the world and increased wellbeing of the people in China and worldwide.

Caixin Media: The US raised a question recently that China’s tariff is too high, including automobile tariff, which is neither fair nor just for the US. Does China have any comment? Thank you.

Gao Feng: What I want to point out is that the WTO does not have a principle of reciprocal tariff. The general tariff levels of WTO members also differ. Tariff structure represents multiple factors for different members, including development stage, industrial competitiveness, trade policy and results of international trade negotiations. It is not reasonable to ask for full reciprocity as even developed members themselves fail to do so. Despite relatively low average tariff, the developed members have higher tariff level than developing members on certain products. The average tariff on dairy products is 95.1% for Japan, 37.4% for the EU, 16% for the US while only 12% for China. You mentioned automobile, not all automobile products enjoy lower tariff in the US than in China. The US tariff on trucks is 25%, while the Chinese tariff is only 20%.

The US view of “low tariff leads to unfair trade” is completely groundless. I want to stress the following: The WTO encourages gradual reduction of tariff and promotes free trade through mutually beneficial negotiations. However, unilaterally increasing tariff on one member based on the so-called “reciprocity” is a serious violation of WTO rules, which seriously damages the multilateral trading system. China firmly opposes it. Thank you.

Due to time limits, the last question please.

Shanghai Securities News: We know that the 123rd Canton Fair will be opened this weekend. This year also marks the fortieth anniversary of reform and opening up. What role does the Canton Fair play in China’s reform and opening up? What is the feature of this Canton Fair compared with previous ones? How about the business promotion this year?

Gao Feng: Regarded as the barometer and bellwether for China’s foreign trade, the Canton Fair is a window and an epitome of China’s reform and opening up. In more than 60 years, the Canton Fair has never been disrupted, playing a positive role for China’s opening up and economic and social development.

This Canton Fair has 60,475 booths, with more than 25,000 domestic and foreign participating companies. It has three highlights compared with previous fairs:

First, the Fair has been more specialized, promoting high quality growth. This Canton Fair continues to optimize the specialized division of exhibits, offering 152 special areas for exhibits, 12 more than the last Fair. Participating companies and product structure have been optimized, with 2,149 branded companies and a large increase in proprietary intellectual property rights, self-owned brand, hi-tech content and low carbon and environment products. It is striving for a smarter Canton Fair to accelerate the integrated online and offline development of the Fair.

Second, the Fair offers rich services to help transformation and upgrading of China’s foreign trade. It offers Canton Fair design awards for exported products, driving progress through innovation; it offers a high-level interactive communication platform for companies by hosting eight forums; it continues to strengthen IP protection for the exhibition, which safeguards innovative development.

Third, the Fair relieves burden for companies and helps poverty alleviation. This Canton Fair offers participating companies from poverty-stricken areas free booth and reduces and exempts 23 items of field service fee. The Fair continues to offer exhibition areas for special products from poverty-stricken areas, giving full play to the role of Canton Fair in boosting foreign trade and economic growth in such areas.

In the next step, we will better leverage the Canton Fair as a comprehensive opening up platform and use two markets and two types of resources at a higher level to make new and greater contribution for the development of open economy in China and around the world.

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