Gao Feng: Dear members of the press, good afternoon. Welcome to MOFCOM’s routine press conference. Since I don’t have announcements to make today, we can proceed directly to Q&A. The floor is open.

CBN: The US Department of Commerce hosted a public hearing in Washington D.C. on July 19 on its Section 232 investigation of imports of automobiles and automotive parts. After the US took measures on its Section 232 investigation of steel and aluminum products, it starts the Section 232 investigation of imports of automobiles. What is MOFCOM’s response to that?

Gao Feng: To my knowledge, the China Chamber of International Commerce and the China Chamber of Commerce for Import and Export of Machinery and Electronic Products attended this hearing on behalf of Chinese industries and offered their comments. We have noticed that out of 44 stakeholders from the US and other regions spoke at the hearing, 43 opposed such a move. They believe that automobile and components are typical civilian products. The so-called national security investigation is neither justified nor in the interests of US automobile sector and consumers.

We hope that the US will carefully consider the voices of the industry and consumers and make the right policy choices. China will closely follow the progress of the US investigation and resolutely defend its own legitimate rights and interests. Thank you.

China News Service: We have noticed that US President Trump stated that he was prepared to levy tariffs on USD 500 billion worth of goods which China exports to the US. What is MOFCOM’s response to that? Once the tariffs are levied, does it mean that all China’s export of goods to the US will be influenced? How will China respond?

Gao Feng: We have noticed the relevant comments by the US. Out of considerations for its domestic political agenda, the US is risking the hard-earned sound environment for global economic recovery and influencing the interests of companies and consumers in the global value chain. It is provoking and escalating trade frictions with other countries everywhere. Such irrational words and behavior are extremely irresponsible. Such typical maximum pressure and blackmail will have no effect on China.

As China has stressed many times, we do not want to fight a trade war, but we are never afraid of one. We will firmly defend the core interests of the country and the interests of the Chinese people. In addition, we will also enhance business cooperation with trade partners around the world and jointly safeguard free trade principles and the multilateral trading system for the healthy and stable operation of world economy. Thank you.

AFP: I have three questions. China did not approve the Qualcomm’s NXP deal, why? US President Trump accused China of targeting American farmers in a "vicious" way and stated that it will be a failed attempt. What is China’s view on this? The US and the EU achieved some initial trade consensus yesterday and stated that they would join forces to fight countries with unfair trade practice. Analysts say that this targets China. What is China’s response?

Gao Feng: As for your first question, you can consult the State Administration for Market Regulation for more details of the case. To my understanding, this is an anti-monopoly enforcement issue and has nothing to do with China-US business frictions.

The second question. China does not want to fight a trade war. However, faced with the constant escalation of trade frictions by the US, China has to take necessary countermeasures. Based on domestic political needs, the US is risking global economic recovery and influencing the interests of relevant companies and consumers, including the interests of US agriculture and farmers. The US is provoking trade wars everywhere and is entirely to blame.

The third question. No trade war is of course good for the EU and the US, as well as the whole world. China will follow closely whether the statement will be earnestly implemented. As for the issue of WTO reform mentioned in the statement, China supports the WTO reform and hopes that the concerns of the majority of the members should be accommodated and demands reflected. Through progressive reforms, the basic purposes of WTO should remain unchanged and principles unchallenged. In addition, the authority and leadership of the WTO, free trade principles and the basic functions and roles of the multilateral trading system should be enhanced to better advance global free trade and economic globalization. Thank you.

China Daily: Up till now, have China and the US taken any latest measures, had any contacts or reached any consensus to restart negotiations and ease the trade war?

Gao Feng: China has stated many times that the prerequisite for negotiations is honesty and trustworthiness. As far as I know, the two sides have not had any contacts about restarting negotiations. Thank you.

Economic Daily: During the China-EU Summit, China expressed the hope to speed up developing China-EU FTA, while the EU said it is only intent and there is still a long way to go. However, we know that the EU and Japan have reached a high-level FTA and some also say that European Commission President Juncker will also bring a FTA proposal to the US. What is China’s view on this? Does it mean that those important advanced economies are seeking a new alliance while excluding China? Will it shake the existing WTO order?

Gao Feng: Both China and the EU firmly support and promote free trade and hope to advance trade and investment liberalization arrangements consistent with their development level and long-term development interests.

As for free trade arrangements and the multilateral trading system the WTO stands for, China always believes that the two are mutually reinforcing and complementary. We should stick with the overall framework of the multilateral trading system and maintain the multilateral trading order. At the same time, free trade deals among the members are beneficial supplements and positive drivers for the multilateral trading system. China advocates for open, transparent, mutually beneficial and win-win regional trade arrangements. We’re positive about anything in line with WTO principles that can help advance economic globalization, regional economic integration and create a community of shared future for all mankind. Meanwhile, we wish to preserve the solidarity of the WTO and work with others to defend and grow the multilateral trading system. Thank you.

CCTV2: The Office of the USTR notes on 23rd that it will hold hearings on imposing tariffs of $16 billion on Chinese imports on 24th and 25th. What’s MOFCOM’s comment?

Gao Feng: We’ve noted the information. China’s position on the Section 301 investigation and US levies on Chinese imports is consistent. The US accusation about China’s unfair practices in technology transfer, IP and industrial policy is a misrepresentation of facts and doesn’t hold water. To our knowledge, over 90% of the stakeholders express their opposition in the 300 plus written comments published by the US. This makes a strong point.

I want to emphasize that since the institution of the Section 301 investigations, the US has kept taking measures that escalate trade frictions while blaming China for stalled negotiations. The rights and wrongs of the matter are self-evident. Thank you.

Economic Information Daily: Data show that China has signed 16 FTAs with 24 countries. We’ve actively advanced a whole lot of FTA negotiations and several FTA feasibility studies this year. How are FTAs progressing on the whole? Could you share some numbers? Besides, how will FTAs further China’s impact on the world economy?

Gao Feng: Concerning China’s FTA development, since 2002, China has signed 16 FTAs with 24 countries in Asia, Oceania, South America and Switzerland. Negotiations for 13 FTAs are underway, including for RCEP, and China-Japan-ROK, China-Norway, China-Israel, China-Panama FTAs and China-Singapore FTA plus, among others. Moreover, we’re engaged with ten countries in feasibility studies for FTAs or FTA upgrades.

FTAs are a major pathway to economic globalization and trade liberalization. Through FTAs, the Chinese economy is more integrated into the world economy while the Chinese market becomes more open with enriched consumer choices. By creating a high-standard FTA network that fits China’s development stage, we look to enhance liberalization and facilitation for goods, services and investment with FTA partners to foster a big global market, improve global value chains, fight trade protectionism with actions and further the development of the open world economy, to make China’s contributions to stable and healthy world economic growth. Thank you.

National Business Daily: We’ve noted that recently the British government published a proposal requiring all foreign competitors to file with the government in advance for any merger, acquisition and deal in the UK with potential national security risks no matter how small the transaction amount is. The proposal comes amid concerns of NATO countries about China’s acquisition of their technologies. How does MOFCOM think the proposal will affect Chinese companies in the UK and global investment activities?

Gao Feng: On Jun. 11th, the UK’s newly amended Enterprise Act came into effect, which reduces the threshold of national security review from 700 billion pounds to 10 billion pounds for three key areas, namely, military and dual-use goods, multi-purpose computing hardware and quantum technology. The UK briefed China a few days ago. On Jul. 19th, the UK unconditionally approved the acquisition by the wholly Chinese-owned Gardner Aerospace Holding of Northern Aerospace, This is the first deal cleared after the amendment of the Enterprise Act, which China welcomes. China has noted that on Jul. 24th, the UK published a white paper titled National Security and Investment, proposing to widen the scope of national security review for foreign investment with a request for public comments. China is studying the white paper and will stay in close contact with the UK.

Now is the golden era for China-UK relations. The UK is China’s major trading and business partner in Europe and 2nd largest investment destination. So far, with nearly US$ 20 billion invested in the UK, Chinese companies have opened over 500 companies and generated many jobs and tax receipts for the country. We respect the UK’s right to subject foreign investment to national security review. That said, we hope the UK will abide by the principles of non-discrimination and transparency, apply reasonable scope and standards, and treat foreign investors objectively, fairly and justly to send positive signals to keep the market open and foreign investment welcome and avoid dampening the confidence of Chinese investors, among others, and creating new uncertainties for foreign investors in the UK.

This concludes today’s press conference. Thank you.