In January-August 2018, China’s Outward Investment Cooperation maintained its steady and upward growth, mainly showing the following features:

1.The investment cooperation in countries along the Belt and Road routes was actively promoted. In January-August, the new investment in 55 countries along the Belt and Road reached up to US$9.58 billion, increasing by 12% year on year. The total value of the newly signed contractual projects amounted to US$61 billion, taking up 44%; the turnover was US$ 50.9 billion, taking up 53.6% of the total amount over the same period of time.

2.The structure of outward investment industry was constantly optimized, and irrational investment was effectively restricted. In January-August, the outward investment mainly flew to lease and commercial service industry, manufacturing industry, mining industry, and wholesale and retail industry, taking up 33.4%, 16.6%, 10.3% and 9.3% respectively. No outward investment project was added in real estate, culture, sports and entertainment areas.

3.The eastern region was still the main force of the outward investment and the enterprises in the three northeastern provinces became more and more active. In January-August, the outward investment of the 10 provinces and cities in the eastern region amounted to US$43.52 billion, up 21.5% year on year, accounting for 78.6% of the local regions’ outward investment. The outward investment of three northeastern provinces reached US$2.33 billion, up 55.3% compared with that of the same period last year, keeping a relatively large rise for 6 consecutive months since this year.

In January-August this year, relevant administrative departments filed and checked 5,806 overseas investment enterprises, and the amount of China’s contracted foreign investment reached US$85.83 billion. Among these, 5,776 non-financial foreign investment enterprises were filed or checked, and China’s contracted foreign investment reached US$79.29 billion; 30 financial foreign investment enterprises were filed or checked, and China’s contracted foreign investment reached US$6.54 billion.

III. The foreign trade situation in January-August this year

According to the statistics of the Customs, China’s total import and export in January-August amounted to 19.43 trillion yuan, up 9.1% year on year. Among these, the export was 10.34 trillion yuan, up 5.4%, and the import was 9.09 trillion yuan, up 13.7%. The surplus was 1.25 trillion yuan, narrowing down by 31.3%. (In August, China's total import and export value reached 2.71 trillion yuan, with an increase of 12.7% year on year. Among these, the export reached 1.44 trillion yuan, with an increase of 7.9%, and the import reached 1.26 trillion yuan, with an increase of 18.8%. The surplus was 179.75 billion yuan, narrowing down by 34.2%. (In January-August, China's total import and export value reached US$3.02 trillion, with an increase of 16.1% year on year. Among these, the export reached 1.60 trillion yuan, with an increase of 12.2%, and the import reached 1.41 trillion yuan, with an increase of 20.9%. The surplus was 193.66 billion yuan, narrowing down by 26.4%). China’s import and export kept rapid growth with its structure further optimized, the shift of power speeded up and it quality and efficiency further improved.

In January-August, China's foreign trade mainly presented the following features:

In terms of the international market layout, in January-August, China’s exports to traditional markets such as the European Union, the United States and Japan increased by 4.4%, 6.5% and 1.4% respectively, 0.4, 0.9 and 0.1 percentage points higher than the growth rates of the past seven months respectively. At the same time, the imports from and exports to emerging markets also maintained a relatively rapid growth. China’s trade with the BRICS and countries along the Belt and Road grew by 13.3% and 12% respectively, 7.9 and 6.6 percentage points higher than the overall growth rate respectively.

In terms of the layout of domestic regions, the exports of the central and western regions reached 1.69 trillion yuan, up 12.4%, 7 percentage points higher than the overall growth rate and accounted for 16.3% of China’s total exports, up 1 percentage point. The exports of the eastern region reached 8.65 trillion yuan, up 4.1%, accounting for 83.7% of the total exports.

In terms of the business entity of foreign trade, the exports of private enterprises reached 4.95 trillion yuan, up 8.2% and accounted for 47.9% of China’s total exports, up 1.2 percentage points. The private enterprises continued to remain as the largest business entity in the export. The exports of the state-owned enterprises reached 1.12 trillion yuan, up 7.5%. The exports of the foreign-invested enterprises reached 4.27 trillion yuan, up 1.9%.

In terms of the commodity structure, the exports of machinery and electronic products reached 6.01 trillion yuan, up 7% and accounted for 58.2% of China’s total exports, up 0.9 percentage points. Among these, the export volume of integrated circuits, automobiles and their chassises, computers and their components increased by 18.9%, 17.9% and 5.2% respectively. The added value of the exports of machinery and electronic products such as computers and their components, integrated circuits, electric motors and generators further increased, with the unit export prices up 10.8%, 10.6% and 7.5% respectively. The exports of seven labor-intensive products reached 1.99 trillion yuan, down 2.5%.

In terms of the trade mode, the exports of general trade reached 5.9 trillion yuan, up 10.1 % and accounted for 57% of China’s total exports, up 2.4 percentage points. The exports of processing trade reached 3.24 trillion yuan, up 0.2%.

In terms of the new models of foreign trade, after two consecutive years of rapid growth, the cross-border e-commerce and purchasing trade continued to grow rapidly this year, which is a new highlight in foreign trade development. The ability of foreign trade companies in independent innovation, the ability of brand construction and the internal driving forces of foreign trade development continued to improve.

In terms of imports, in January-August, the total import volume of ten commodities including natural gas, crude oil and coal increased by 17.4%, pulling up China’s total import by 4 percentage points. Among these, the amount of imported crude oil, natural gas, copper concentrate and coal increased by 6.5%, 34.8%, 17.9% and 14.7% respectively and the amount of imported iron ore, steel and soybean decreased by 0.5, 0.1 and 2.1 percentage points respectively. The imports of machinery and electronic products reached 4.08 trillion yuan, up 12.6%, pulling up China’s total import by 5.7%.

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

China News Service: We noted that the US indicated additional tariffs on $200 billion worth of Chinese goods that may be imposed soon. This could be followed by another round of tariff on $267 billion worth of Chines goods. What’s your comment and how would China respond?

Gao Feng: We took note of the remarks from the US side. The unilateral imposition of tariff will eventually harm the interests of the two countries and the world at large. For all the opposition form the industries and the consumers, the US continues to release messages that may lead to escalation of the trade tension. Such blackmailing and pressurizing does not work on China and will not solve the problem. We hope the US will respect the public sentiment, take concrete actions, and bring China-US relations back to the normal track through dialogue and consultations on an equal footing and in good faith. Thank you.

Phoenix TV: The WTO released a document on the 11th to its members that shows China has made a request to the WTO for the authorization of seven billion dollar trade retaliation against the US each year, as a result of US failing to stop and redress its illegitimate anti-dumping measures. What is China’s position and concrete plan?

Gao Feng: On September 9, China submitted the request for trade retaliation authorization against US anti-dumping measures. The WTO had ruled that all the 13 AD measures in this case were in breach of WTO rules, and asked the US to enforce the ruling by August 22nd, but the US did not take any substantive actions for enforcement. It is a legitimate right of China to request retaliation authorization in accordance with WTO rules.
China urges the US to respect the WTO rules and rulings, take effective measures to redress its abuse of trade remedy measures, and fulfill its international obligations in good faith.
Thank you.

Reuters: I have three questions. First, the export control of the US has limited the amount of US products that may be subject to additional tariff. Would China consider further increasing the tariffs on the current basis? Second, there’s media report that China has postponed the approval of licensing application of US companies in financial services and other sectors, as a move to counter America. Is it true? Third, it is said the Secretary Mnuchin has sent the invitation to China for another round of trade talks. Do you foresee a new round in the near future? Do you believe the new round will produce concrete agreement to resolve trade frictions for the long term?

Gao Feng: Your first question is based on the assumption that the trade friction will further escalate, which I believe is undesirable for all. Regarding the second question, I do not have any knowledge or information. You may inquire the authorities concerned. Regarding the third question, the two consultation teams have maintained communication in various ways and exchanged views on each other’s concerns. China has received the invitation and welcomes it. The two sides are now discussing the detailed arrangement. China believes the escalation of trade tensions will serve the interest of neither party.
Thank you.

China Business News: It seems that the US, the EU and Japan have reached some agreement on initial FTA negotiations. Mr. Spokesman, does China have plans on signing FTAs with other countries or upgrading existing ones in the near future?

Gao Feng: Up to now, China has concluded 17 FTAs with 25 countries and regions, ranging from Europe, Asia, Oceania, South America and Africa. We are negotiating new FTAs or FTA upgrade, 12 in total, with 27 countries, including RCEP, China-Japan-ROK FTA, China-Norwegian FTA, China-Sri Lanka FTA, China-Israel FTA, China-ROK FTA, China-Pakistan FTA, as well as upgrade talks with Singapore and New Zealand.

Economic globalization and trade liberalization remains the major trend of the world economy. To establish FTAs with relevant countries plays an important part in China’s further opening up and building an open world economy. We are willing to explore establishing FTAs with more countries that are interested so as to promoting regional economic integration. In the meantime, China will work with the majority of countries to firmly uphold the rules-based multilateral trading system, safeguard the free trade order and the security of global industrial chain, and push forward economic globalization to a higher level and a wider scope. Thank you.

Economic Daily: Foreign media reports that the US government may freeze Chinese enterprises’ assets in the US or block them on the US market as a punishment for the so-called “IP theft”. What’s MOFCOM’s comment?

Gao Feng: We’ve noticed the coverage but we are not sure about the authenticity of such news. The Chinese government takes IP protection very seriously. IP infringements, once found out to be true, will be dealt with in accordance with law. That said, we hope the US can treat Chinese businesses in America in an objective and unbiased way, rather than mask trade protectionism with groundless accusations, so as not to sap the confidence of companies from China and other countries in the US business environment. Thank you.

CNR: We’ve noted that according to customs statistics last week, China’s export to and import from the US grew by 13.2% and 2.3% respectively in August, driving trade surplus to a record US$31 billion. What do you make of these figures in the context of China-US trade frictions?

Gao Feng: We have been stressing that the US trade deficit is attributed to, among others, low savings rate in the US, dollar’s position as reserve currency, and American export control against China. Besides, fluctuations in surplus or deficit are up to market. The relatively fast growth in China’s export to the US in the first eight months this year is primarily ascribed to a rising demand in US market, coupled with some Chinese companies’ tactics to export ahead of schedule due to concerns over US tariff policies.

Despite its concerns about the trade deficit with China, the US should realize that unilateral tariffs cannot solve the problem. Both China and the US should take practical measures, pull in the same direction, and strive for sound and stable growth in bilateral trade. Thank you.

21st Century Business Herald: China’s trade in goods grew by 9.1% in the first eight months this year, while growth rate of China-US trade was lower than the total growth rate and declined significantly year on year. Is this the impact of the China-US trade war? Given the 7.7% expansion of China-US trade deficit, what’s MOFCOM’s view on foreign trade for the rest of the year?

Since the beginning of this year, China’s total export and import have maintained its stable, upward momentum with improved structure, faster shift of driving forces as well as higher quality and efficiency.

The trade frictions initiated by the US will surely exert a negative impact on China-US trade. We do not want to see US unilateral protectionist measures weaken the sound momentum of China-US bilateral trade.

Currently, world economy is recovering and the Chinese economy is shifting towards high-quality development. Generally speaking, despite increasing external uncertainties and instabilities, fundamentals of China’s trade development have not changed. Endogenous driving forces generated by innovation are building up. We have the confidence to further sustain the sound and stable development of China’s foreign trade.

Thank you.

Xinhua News Agency: Recently President Xi Jinping attended the fourth session of the Eastern Economic Forum (EEF) in Vladivostok, Russia. Could you please brief us on China-Russia trade and economic cooperation? What new outcomes have been achieved on the commercial front during the presidents’ meeting?

Gao Feng: In recent years, China and Russia are moving faster to upgrade their trade and economic relationship onto a higher level, making it an important pillar and driving force of bilateral ties. China has been Russia’s largest trading partner for eight consecutive years. This year, China-Russia bilateral trade have been growing rapidly, with total trade amounting to USD67.5 billion in the first eight months, up by 25.7% year on year. It is likely that this year total trade between China and Russia will amount to USD100 billion. At the same time, China has maintained its position as Russia’s main source of FDI. In the first seven months of this year, China’s ODI in Russia registered USD230 million and Russia’s paid-in FDI in China amounted to USD48.64 million. The two countries’ major strategic projects in energy, nuclear energy, aviation, aerospace and cross-border infrastructure are orderly underway.

President Xi Jinping attended the fourth session of the EEF upon invitation and met with President Putin. Multiple outcomes have been achieved on the commercial front:

The two presidents witnessed the signing of a number of governmental and business cooperation documents, which cover trade, investment, subnational cooperation, energy, storage and logistics, among others. MOFCOM and the Ministry for Development of the Russian Far East signed the Development Plan of China-Russia Cooperation in the Russian Far East 2018-2024, which will be the guideline for subnational and business cooperation in the Russian Far East. Besides, MOFCOM and the Ministry for Development of the Russian Far East also signed the Memorandum of Understanding on Establishing a Business Council among northeastern China, the Russian Far East and Baikal Region, which aims to facilitate project matchmaking among businesses, provide information consultancy for businesses and help them solve problems in cooperation. The business council will supplement the two countries’ governmental cooperation mechanisms and further promote commercial and investment cooperation among northeastern China, the Russian Far East and Baikal region.

Subnational cooperation is another highlight of President Xi’s visit this time. During the visit, President Xi and President Putin attended the China-Russia subnational leaders’ dialogue and made speeches, pointing out a direction for future subnational cooperation between the two countries. Subnational governments and businesses from both sides signed a number of cooperation agreements, which cover energy, resources, agricultural and forest development, equipment manufacturing, transport and logistics, medical care and pharmaceuticals, as well as the financial sector. These agreements add new substance to China-Russia comprehensive strategic partnership of coordination.

Going forward, China and Russia will make every effort to fully implement the Development Plan of China-Russia Cooperation in the Russian Far East. We will stay in touch with relevant authorities, subnational governments and businesses and work closely with our Russian colleagues to implement the two presidents’ consensuses. We will advance the commercial outcomes in a coordinated manner, keep deepening subnational cooperation between China and Russia and move faster to implement cooperation projects in energy, mineral resources, agriculture and transport, among others.
Thank you.

CNR: Just now you mentioned that one of the important items on the agenda of President Xi’s visit to Russia is subnational economic cooperation. Could you please brief us on the current status of Sino-Russian cooperation in developing Russia’s Far East? How do you see the prospects for future bilateral cooperation in developing the region?

Gao Feng: In recent years, under the strategic guidance of President Xi Jinping and President Putin, Sino-Russian Far East development cooperation has been in good momentum and begun to bear fruit thanks to such concrete mechanisms as the intergovernmental cooperation committee between Northeast China and the Far East and the Baikal region of Russia.

First, trade volume has maintained rapid growth. In 2017, the volume of trade between China and Russia’s Far Eastern Federal District reached US$7.7 billion, making China the largest trading partner of the Far East. Trade volume in the first half of this year reached US$4.2 billion, an increase of 18% year-on-year.

Second, investment cooperation has been expanding. According to Russian statistics, up to now China has participated in 32 investment projects of the leap-forward development zone and free port of the Far East, with over US$4 billion of total investment in the pipeline. China is the largest foreign investor in the Far East.

Third, steady progress has been made in key projects. Cross-border infrastructure projects such as the Tongjiang Railway Bridge and the Heihe Highway Bridge are progressing smoothly in general and expected to be completed and opened to traffic next year, while the conservation and development of Heixiazi Island is advancing in a steady manner. The two sides are exploring and implementing a number of cooperation projects in the fields of agro-forestry development, energy resources and port logistics. Some of these projects have already seen initial progress.

During President Xi’s current visit to Russia where he attended the Eastern Economic Forum and in his meeting with President Putin, the two sides reached important new consensus on furthering Sino-Russian Far East cooperation, ushering in a new window of opportunity for bilateral cooperation. Going forward, the Ministry of Commerce will work with relevant departments and localities to further promote the coordination of policies and projects between the two sides, strengthen guidance and services for business cooperation, push for new progress in key areas of cooperation and strive to make the Sino-Russian cooperation in the Far East a model for subnational cooperation.

China Business Herald: The 20th CIFIT was opened in Xiamen, Fujian recently. Mr. spokesperson, what new achievements have been made at this fair? What are the new highlights in the field of trade and economic cooperation?

Gao Feng: More than 1,000 delegations from more than 120 countries and regions, nearly 200 multinational companies and about 5,000 domestic and foreign enterprises participated in the recently concluded 20th CIFIT. More than 150 business matchmaking and presentation activities were held, and more than 1,900 investment deals were signed, with a total contractual investment of over RMB500 billion. In breakdown, RMB 251 billion was in the form of inward foreign direct investment, RMB 67.2 billion outward foreign investment, and more than RMB 184.3 billion in terms of regional cooperation investment. Over 600 guests from more than 70 countries and regions spoke at the 80-plus forums and seminars of the CIFIT.

The highlights of this CIFIT are in the following three areas:

First, the CIFIT carried a distinct BRI feature. This year is the 5th anniversary of the Belt and Road initiative (BRI). At this year’s session, special activities such as a high-level forum on the Belt and Road development and a session on the internationalization and innovative development of the traditional Chinese medicine were organized, while a “Maritime Silk Road National Investment Pavilion” was set up to promote the high-quality development of the BRI.

Second, international organizations were deeply involved as the fair became more international and professional. UNCTAD, UNIDO, the WTO, the OECD, the World Association of Investment Promotion Agencies and others were deeply involved in this year’s CIFIT, pooling together their respective advantages in the field of investment promotion and sharing best practices and success stories on two-way investment with global investment promotion agencies and commerce authorities at all levels in China.

Third, the CIFIT had a focus on international investment trends. Focusing on the topic of two-way investment, the CIFIT hosted the 2018 International Investment Forum themed “New Challenges and New Opportunities for Building an Open World Economy” and over 80 special forums including the 16th national joint conference of investment promotion agencies, symposium with multinational corporations, forum on cross-Strait trade and economic cooperation and development, seminar on investment facilitation and development, 23rd World Investment Conference of the WAIPA, international seminar on overseas trade and economic cooperation zones, and the 4th public-private dialogue on advancing the Asia Pacific Model E-Port network.

President Xi Jinping sent a congratulatory letter on the occasion of the opening of the CIFIT, in which he showed the direction for CIFIT’s future development. Next, we will stick to the theme of “promoting two-way investment” and focus on the international, professional and brand-oriented features of the CIFIT, with a view to turning it into a major platform for a new round of high-level opening up to the outside world.

Thank you.

Gao Feng: With that I conclude today’s press conference. Thank you all!

(All information published in this website is authentic in Chinese. English is provided for reference only. )