Gao Feng: Members of the media, good afternoon. Welcome to MOFCOM’s routine press conference. I have no announcement to make today and am happy to take your questions.

Economic Information daily: My question concerns the FOCAC. A host of outcomes were agreed at the Beijing Summit. What specific measures will MOFCOM take in investment and trade and economic cooperation moving forward?

Gao Feng: On trade and investment side, we will synergize China-Africa partnership under the Belt and Road initiative, the African Union’s Agenda 2063, UN Agenda 2030 for Sustainable Development and African countries’ development strategies and work around the eight major initiatives in the following areas:

First, innovate China-Africa trade and economic cooperation mechanisms. China will open China-Africa Trade and Economic Expo with thematic seminars, achievement showcasing, business matchmaking and experience sharing, among others, to build new windows for subnational trade and economic cooperation with Africa.

Second, strengthen the development of trade and economic cooperation zones. China will continue to leverage the aggregating effect of trade and economic cooperation zones to provide hardware support for creating and upgrading trade and economic cooperation zones in Africa and guidance, support and service for Chinese companies establishing moderately big trade and economic zones of good economic and social benefits in terms of construction, development and business attraction.

Third, encourage companies to expand investment in Africa. China will continue to make good use of bilateral inter-governmental mechanisms such as joint economic and trade commission, high-level steering committees and joint working groups, among others, to strengthen China-Africa strategic connectivity and offer more support and help for Chinese investors in Africa.

Fourth, promote China-Africa trade. China will take full advantage of the CIIE platform to promote African export to China; encourage Chinese trade associations and businesses to hold Chinese-branded goods show in Africa every year to bring branded and quality Chinese products to Africa while supporting African countries’ trade promotion activities in China; and explore with related African countries the creation of an e-commerce cooperation mechanism for strengthened policy coordination, planning connectivity, experience sharing, joint research and personnel training.

Fifth, carry out FTA cooperation. As we all know, China has concluded FTA negotiations with Mauritius and will continue to explore with other interested African countries or regional organizations FTA negotiations of a moderate level of ambition to create a better institutional environment for China-Africa trade and economic cooperation.

We will work with African countries to implement the outcomes of the FOCAC Beijing Summit as best as we can to advance practical China-Africa common development, bring more benefits to Chinese and African people and build a closer China-Africa community of shared future.

China News Service: You mentioned the conclusion of China-Mauritius FTA during the FOCAC. Could you shed some light on the areas where the two sides will remove tariff restrictions? Is tourism included? Does this point to more FTA negotiations between China and African countries moving forward?

Gao Feng: As I mentioned earlier, the China-Mauritius FTA is China’s first FTA with an African country, which met the comprehensive high-standards and mutually beneficial objectives. The Agreement will cover trade in goods, trade in services, investment and economic cooperation, among others. In terms of trade in goods, the shares of tariff lines and trade value in duty-free trade both exceed 90%; as regards trade in services, both sides commit to open over 100 sectors. The China-Mauritius FTA is the most liberalized FTA for Mauritius service-wise; on investment side, the Agreement will upgrade the 1996 China-Mauritius Bilateral Investment Treaty, which will be the first upgrade among China’s BITs with African countries. Besides, the Agreement also includes TCM services.

As for tourism, the Agreement has dedicated clauses to further promote the liberalization and facilitation of two-way tourism. For example, Chinese and Mauritian investors can both set up travel agencies in each other’s countries to offer more custom services and experience programs; Chinese investors can open hotels and restaurants in Mauritius, which pays special attention to Chinese specialty dining projects. In addition, the two sides will strengthen communication and cooperation to enhance the transparency of tourism-related policies and licenses and offer easier and better services for tourists from both countries.

The conclusion of the FTA will not only provide more robust institutional guarantee for deepened bilateral trade and economic relations, but also enhance the quality and efficiency of China-Africa trade and economic cooperation and add new substances to China-Africa comprehensive strategic partnership. Thank you.

CGTN: My question is on China-US trade frictions. The US is planning to impose tariffs on US$ 200 billion worth of Chinese products. The public comment period is about to close and we see that more than 90% of the public participants are against such a move. However, there are also voices saying that President Trump will continue with such a measure. What is MOFCOM’s response to that?

Gao Feng: We have noticed the relevant coverage. For some time, the US has seriously violated the WTO rules and constantly introduced unilateral measures, constantly escalating the China-US trade frictions. This both damaged the interests of China and US companies and consumers and the safety of global value chains and industrial chains. If the US ignored the objections made by the majority of companies in their comments and acted willfully to take any new tariff measures on China, China will have to take the necessary countermeasures. In addition, China also stresses that any pressure on China is unjustifiable and ineffective. The trade war will not solve any problem and only equal and honest dialogues and consultations are the right choices for resolving China-US trade frictions. Thank you.

Phoenix TV: We know that the public comment period in the US will expire today. News says that the US may impose tariffs on US$ 200 billion worth of Chinese exports to the US this week. What countermeasures will be taken by China? Has China already got a list of specific countermeasures?

Gao Feng: After the US published its decision of planning to levy tariffs on US$ 200 billion worth of Chinese exports to the US, China has published its countermeasures of levying tariffs on US$ 60 billion worth of Chinese imports from the US as well as the list of goods. If the US acts willfully, China will take the necessary countermeasures according to the US measures. In addition, China will closely follow the impacts of the tariffs and take strong measures to help Chinese and foreign companies operating in China overcome difficulties. We have the confidence, abilities and means to safeguard the stable and healthy economic growth in China. Thank you.

CBN: China said that China and the US agreed during the last consultation that they would keep in touch. Have China and the US decided on the time and place for the next round of consultations?

Gao Feng: To my knowledge, after the conclusion of the vice-ministerial consultations on economic and trade issues held in Washington on August 22-24 by China and the US, the teams at working level for both sides have kept in touch and exchanged views on issues of mutual interests. They are committed to finding a solution for China-US economic and trade issues. Thank you.

China National Radio: In July, China had a surplus of trade in goods worth RMB 176.96 billion, registering a considerable decline. Was it influenced by China-US trade frictions? Will the surplus continue to drop in the future? In addition, the services trade deficit was RMB 151.64 billion, higher than that of June. What are the reasons behind it?

Gao Feng: We always stress that China never deliberately seeks trade surplus. This July, China’s surplus of trade in goods declined because imports kept increasing by a large margin, continuing the trend of surplus changes for some time.

I have some figures. Since the third quarter of 2016, China’s goods import achieved rapid growth. The imports sustained a higher growth than exports, with the trade surplus declining for eight quarters in a row. According to China Customs statistics, in 2016, the growth of goods imported by China was 2.5 percentage points higher than that of goods export, with the surplus dropping by 9.2%; in 2017, the growth of imports was 8.1 percentage points higher than that of exports, with the surplus dropping by 14.7%; in the first seven months of this year, the growth of imports was 7.9 percentage points higher than that of exports, with the surplus dropping by 30.6%.

CNR: We have noticed that the European Commission announced that the AD/CVD measures against China’s photovoltaic industry were terminated on September 3. May I ask whether this termination means that free trade in the photovoltaic industry between China and Europe has been officially restored? At the same time, to what extent do you think this may promote the development of China’s photovoltaic industry going forward?

Gao Feng: Regarding the PV case with the European Union, it is fair to say that it is a typical example of how China and the EU managed to resolve conflicts and differences through dialogue and consultation and achieve mutual benefit and common development in the field of trade and commerce.

Since the case was initiated in 2012, China and the EU had multiple rounds of consultations and reached agreement on a price undertaking mechanism to properly resolve the issue and prevent it from further escalation. The industries of both sides, including the upstream and downstream industries, have kept strengthening cooperation and realized complementary advantages and common development. On 3 September, the EU side announced the termination of the AD/CVD measures against Chinese photovoltaic products, which is both a reflection of the voice of the two industries, and a pragmatic move by the EU side towards free trade against the current rise of unilateralism and protectionism in a certain country.

With the measures terminated, trade in photovoltaic products between China and the EU now returns to normal market conditions, which provides a more stable and predictable business environment for industry cooperation between the two sides. China stands ready to make joint efforts with the EU in safeguarding free trade and the rule-based multilateral trading system, promoting win-win cooperation between the industries of both sides, and pushing China-EU commercial relations to a new level. Thank you.

Shanghai Securities News: We are aware of the adoption of the Electronic Commerce Law at the fifth meeting of the 13th NPC Standing Committee. How does the Ministry of Commerce comment on this? Will there be any relevant measures to promote the implementation of the law in the future?

Gao Feng: The Electronic Commerce Law was promulgated at a perfect timing. In recent years, as Internet technologies have been widely adopted, China’s electronic commerce industry has been developing rapidly. The industry has played an important role in developing the Belt and Road, fostering rural revitalization, driving innovation and entrepreneurship, promoting economic transformation and consumption upgrading, and has thus become a new impetus for China’s economic growth. At the same time, some problems have emerged in the field of e-commerce, requiring solutions at an institutional level.

Following the principle of “encouraging innovation, being inclusive and prudent”, the recently promulgated Electronic Commerce Law takes into full account prominent issues facing the development of electronic commerce, while leaving ample room for the industry’s future development. It provides a legal basis for safeguarding the legitimate rights and interests of the subjects of electronic commerce, regulating the conduct of electronic commerce, maintaining market order and promoting the sustained and healthy development of electronic commerce.

Next, we will take practical steps to implement the law from both the development and the normative aspects. For example, we will actively promote the innovative development of online retailing, and actively cultivate new products, new services, new models and new business formats. We will carry out targeted poverty reduction via e-commerce, lend quality agricultural products and specialty products the access to urban and rural markets, promote rural e-commerce development, and continue to push forward cross-border electronic commerce pilot demonstration. At the same time, we will strengthen regulation, and promote a system of coordinated management that is in line with the characteristics of e-commerce and multi-stakeholder market governance system to optimize the development of e-commerce environment. Thank you.

The sustained and rapid growth of merchandise imports in China is mainly attributed to the smooth and sound operation of the domestic economy and the unlocking of the consumption potential. This is a result of China’s continuous opening up to the outside world, its voluntary effort to reduce import tariffs, and its proactive measure to expand imports. It is also owing to the endeavor to meet the growing domestic demand for production and consumption.

In the field of services trade, demand in China’s services market is also expanding. For example, demand for high-quality services such as finance, insurance and intellectual property products is also rapidly increasing. This is a major reason why China’s trade deficit in services has been expanding.

We believe that the potential of the Chinese market will be further released, be it for goods or for services. We will continue to improve trade facilitation, open up the market wider and promote balanced trade. Thank you.

Xinhua News: Recently we have seen the growing popularity of preserved mustard roots, Erguotou (Chinese white liquor), bike sharing and the online shopping platform Pinduoduo, which some refer to as “consumption downgrade”. Do you agree with this remark? What’s your comment on the ongoing debate on consumption upgrade and downgrade? What measures will MOFCOM take to promote consumption upgrade?

Gao Feng: We have taken notice of the biased remarks concerning “consumption downgrade”.

In fact, the increased sales of some popular goods reflect new trends in consumption upgrade.

First, an upgrade of choice from store brands to reliable name brands. Affordable and quality products of name brands satisfy people’s diverse demands for quality consumption.

Second, an upgrade of ways of consumption. Development of diverse e-commerce platforms helps to expand the group of online consumers and to satisfy the demand of new consumer groups in small and medium-sized cities as well as in villages. At the same time, it also reflects the trend of differentiation in the e-commerce sector.

Third, an upgrade of consumption philosophy and mentality. New consumption patterns like the sharing economy reflect the trend that consumers are making more rational choices and turning to green, environment-friendly ways of life.

Going forward, we will follow the requirements of high-quality development to work on expanding services consumption, developing medium- and high-end consumption, upgrading consumption channels and creating a sound consumption environment. For example, we will promote the stable growth and continuous upgrades of China’s consumption market through developing high-end pedestrian streets, moving faster to build and improve consumption service centers for urban and rural consumers, building efficient urban and rural delivery systems and launching campaigns dedicated to improving market order in commercial enforcement. Thank you.

Global Times: After the RCEP talks held in Singapore concluded at the end of last month, 16 members passed the joint statement and expressed the hope to conclude the talks by the end of this year. Could you please share with us the progress and achievements in the talks?

Gao Feng: Trade and commercial ministers or representatives from 16 RCEP participating countries had in-depth discussions on issues concerning trade in goods, trade in services, investment and rules at the RCEP Ministerial Meeting held on 30-31 August. The ministers and representatives appreciated the progress made in the talks, particularly the conclusion of the Chapters on Customs Procedures and Trade Facilitation and Government Procurement. They adopted a Package of Year-End Deliverables and instructed negotiators to exert utmost efforts to achieve each of the targets in the Package in order to push for conclusion of the talks at an early date. To date, talks on four chapters have been concluded.

As an active promoter of the talks, China will continue to respect and support ASEAN’s core position in the talks, play a constructive role and work with all parties to push for the conclusion of the agreement at an early date. Thank you.

Economic Daily: Prices of vegetables and other agricultural products soared as a result of recent extreme weather events like high temperatures, typhoons and heavy rain. As the competent authority that oversees circulation, what measures has MOFCOM taken to guarantee stable market supply and prices?

Gao Feng: Effective supply and stable prices of vegetables and other agricultural products are a matter of people’s livelihood, to which MOFCOM has always attached high importance. Recently, MOFCOM launched a “National Matchmaking between Producers and Dealers of Agricultural Products” and set up a platform to buy local products and sell them nationwide. We arranged agricultural dealers and processors to visit places of origin and meet directly with agricultural producers so as to boost sales of high-quality, seasonal specialty produce in urban and rural markets outside places of origin and enrich people’s shopping baskets. At the first matchmaking event held in the city of Zhengzhou, 361 dealers from around China met with 450 agricultural producers from Henan province. 192 agricultural products and byproducts under 18 categories were presented at the event, with intended purchase amounting to 10.3 billion yuan. Going forward, matchmaking events will also be held in Sichuan, Guizhou, Xinjiang, Yunnan and Guangxi, among other provinces and regions. At the same time, MOFCOM encourages local governments to help expand the purchase of leading retailers and agricultural markets organized for public interest to guarantee stable supply and prices of main agricultural products.

MOFCOM will hold the agriculture-commerce connectivity conference on September 20-22 in Weifang, Shandong to promote producers-dealers matchmaking on a bigger scale and a higher level. Recently, some farmlands, greenhouses and farms in Shouguang, Shandong suffered major losses due to heavy rain. To date, disaster-stricken farmers have already resumed production and replanted tomatoes and cucumbers among other agricultural products, which will gradually come onto the market during the National Day holiday. To help reduce farmers’ losses, a vegetable purchase meeting will be organized for disaster-stricken farmers at the agriculture-commerce connectivity conference. Dealers and processors will talk to farmers face-to-face, sign deals in advance and lock the market.

Gao Feng: This is the end of today’s press conference. Thank you.