Home > News>Press Conference

Tag: press conferenceChina-US consultationsFDI

Regular Press Conference of the Ministry of Commerce (January 17, 2019)

Gao Feng: Members of the press, good afternoon. Welcome to the regular press conference of the Ministry of Commerce. I have no announcement to make today and am happy to take your questions. The floor is open for questions.

CGTN: Recently, we’ve seen media reports that Vice Premier Liu He will visit the US in late January for another round of China-US trade consultation. Is it true? If yes, could you share more information with us?

Gao Feng: I can confirm with you that at the invitation of US Treasury Secretary Mnuchin and USTR Lighthizer, Vice Premier Liu He will visit the US on Jan. 30th and 31st and hold consultations with the US on bilateral trade and economic issues to jointly push for the implementation of the key consensuses of the two presidents. Thank you.

China News Service: We noted that recently the Federation of German Industries published a report, which accuses China of a number of unfair practices, including refusing to open the market reciprocally, forced technology transfer and dumping and advises the EU to take a tough line on China. What’s MOFCOM’s comment?

Gao Feng: We’ve noticed the position paper of the Federation of German Industries. At the same time, we’ve also noted the criticisms of some views in the report from the Delegations of German Industry and Commerce and BGA, among other representatives of the German economic community.

China and Germany, and China and the EU have strong complementarity in the trade and economic area. Our trade and economic cooperation is complementary and mutually beneficial, benefiting the industries on both sides. The accusations against China in the position paper are untrue.

According to Chinese statistics, China-EU trade hit US$ 682.2 billion in 2018, up 10.6% year-on-year. China-Germany trade approached US$ 183.9 billion, up 9.4% year-on-year. From Jan. to Nov. 2018, the EU’s actual investment in China totaled US$ 9.23 billion, up 18% year-on-year; Germany’s actual investment in China totaled US$ 2.83 billion, up 86.5%. This fully demonstrates the strong confidence of the companies from both sides in our cooperation and the robust confidence of European business, including German business in China’s market environment.

The development of China-EU trade and economic relations has been marked by competition and cooperation. Competition doesn’t have to be a win-lose situation. Instead, it can be cooperation and win-win. China and Germany and China and the EU share broad interests in global economic governance and climate change and enjoy huge potentials in cooperation in digital economy, industrial IoT, new energy vehicles, AI and third-market cooperation. As China expands open-up, we’d like to share development opportunities with the EU and also hope that the EU will discard the zero-sum game thinking and be a voice of reason to jointly raise the quality of China-EU trade and economic cooperation and benefit both industries and peoples.

Yicai TV: According to recently published figures, China’s imports and exports grew by 8.8% year-on-year in the fourth quarter of 2018, which was a slight decline from that of Q3. What is your take on that and the outlook on foreign trade in 2019?

Gao Feng: Generally speaking, China’s imports and exports improved amid stability in 2018, with total imports and exports, total exports and total imports all hitting record highs. For the whole year, quarterly imports and exports increased quarter by quarter. Due to the high base for the same period of the last year and slowing international demand, among others, the growth in Q4 slowed from that of Q3, but remained in the reasonable range.

As for the foreign trade situation in 2019, at present, the uncertainties and instabilities facing China’s foreign trade have increased. A few days ago, the World Bank revised down the global economic growth forecasts for this year and next year as international market demand slows, trade protectionism rises and the external environment gets complicated and grave. Meanwhile, we believe that China’s foreign trade still enjoys strong support. As the supply chain structural reform goes deeper, the international market layout, domestic regional distribution, trade mix, operating entities and trading models of China’s foreign trade have continuously optimized with strengthening endogenous dynamics. We have the confidence to improve the quality of this year’s foreign trade amid stability. Thank you.

Xinhua News Agency: The window for public comments on the US export control over 14 key technologies was closed on the 12th of this month. The DOC is expected to release the official proposal amid strong opposition. What’s your comment?

Gao Feng: We noted that during the period for public comments on the export control over 14 fundamental and emerging technologies, numerous industry organizations, companies and research institutes in the US and other countries expressed their concerns that enlisting them may generalize the concept of national security and result in the abuse of export control, undermining the right of all countries to harness new technologies in a peaceful manner and impeding global technological advance.

It is China’s consistent position that just as technology progress should be effectively protected, so they should be shared by the world. We hope the countries concerned will handle this issue properly with constructive measures, and avoid the impact on normal international trade and technology cooperation. Thank you.
TAR-TASS: Recently, some countries, especially western countries have taken a range of measures to reject or restrict the purchase of high-tech products from China. Will this affect China’s technology trade with the rest of the world? To make up for the lost overseas market, will Chinese companies seek new platforms for international expansion? How would MOFCOM comment on the restrictive measures of these trading partners?

Gao Feng: Recently, some countries are trumping up the so-called threat and security risks from China’s tech products and placing groundless and unfounded blame on Chinese companies.

The technology innovation and progress in China is by no means a threat to the world. We mean to share the fruits through normal international trade in the interest of all peoples, who are entitled to such benefits.

We will continue to support Chinese companies in win-win international cooperation and promote technological advance and trade development. Some countries, especially advanced countries should embrace high-tech products from all countries, including those from China, with confidence and an open attitude, so that their consumers have more choices. Thank you.

Shenzhen TV: Robert Zoellick, former USTR and World Bank president recently remarked that the US attempt to decouple from Chinese economy is doomed to fail and China is impossible to contain. What’s your comment?

Gao Feng: We have noted such report. In the four decades of diplomatic ties between China and the US, the two countries have shared far greater common interests than differences in the trade and economic area. In 2018, the bilateral trade in goods was over USD630 billion and the two-way investment stock was over USD240 billion. The commercial cooperation between the two countries are so close that the interests are intertwined, delivering real benefits to the two peoples and providing a strong driver for the world economy. To deepen and enhance trade and economic cooperation is the choice of the market and the business community.

China pursues its development to meet the needs of our people, and contributes to global development. China’s continuous effort to open up and develop brings opportunities for all countries, including the US. We hope the US can encourage win-win cooperation and common development of the two business communities in a constructive manner, as it serves the fundamental interests of the two businesses and peoples. Thank you.

China Daily: Since the second half of 2018, FDI into major projects in China have grown remarkably. How would MOFCOM forecast the FDI trend in 2019, and how will China win foreign investments with its competitiveness?

Gao Feng: In 2019, amid complex and severe external environment and greater competition for FDI attraction, China will remain its overall strengths in receiving FDI.

Chinese economy has kept the sound trend of stability and growth, with eased market access, expanded areas for opening-up, and improved business environment. The enormous potential of the domestic market is being gradually tapped into. Last year, the growing number of FDI projects suggests growing confidence of foreign investors in China and the increased competitiveness of China to attract FDI. Many foreign chambers of commerce have conducted surveys that prove China continues to be an important destination for FDI.

We believe that with the joint efforts of governments at all levels, China will continue to open its market, improve business environment, and foster a fair, transparent, and predictable investment environment. It is predicted that FDI into China will remain stable this year. Thank you.

Phoenix TV: We also have a question about China’s foreign trade data. You mentioned the trade data in the fourth quarter; can you explain the reasons behind the decline in China’s import and export in December? Do you think the export rush effect is weakening? Does it mean China’s foreign trade will be faced with even bigger pressure this year? Besides, what measures will MOFCOM take to stabilize foreign trade?

Gao Feng: Fluctuations in monthly import and export growth rates are related to many factors, such as the international economic condition, rhythm of businesses’ import and export, international commodity prices and the base figure last year. Fluctuations in China’s import and export growth rates in December are a result of weakening international market demand and high base figure of the same period last year. Of course, some businesses’ rush export, as you mentioned, is also one of the reasons.

This year, China’s foreign trade development is faced with both challenges and opportunities. The key lies in how to build up ourselves in a complex international trade environment.

Since last year, the State Council has adopted a series of relevant policy measures to stabilize foreign trade. Now we mainly focus on implementing these measures. At the same time, we will carefully analyze the trend of foreign trade development and adopt more targeted measures when necessary to address problems that might occur. With these efforts, we hope to help foreign trade businesses turn challenges into opportunities and achieve innovative development. Thank you.

CRI: Could you please explain why Minister Zhong Shan said recently that to achieve stable, higher-quality foreign trade development, China needs to optimize market players by cultivating a bunch of influential big enterprises and transnationals? What specific measures will be taken? Besides, Minister Zhong proposed to explore 30 key markets in 2019. Which countries will be China’s focus?

Gao Feng: China needs to fully tap into all types’ of market players’ vitality if it is going to shift from high-speed growth to high-quality growth in foreign trade and become a trader of quality. Cultivating a bunch of capable, influential big companies and transnationals can create a leading effect, which will help with the stable, higher-quality and sustainable development of upstream, downstream and other relevant sectors. We will take comprehensive measures in building brands, networks, sales capacity and creativity, among others, to create a sound policy environment for all types of players to thrive and achieve innovative development.

As for exploring key international markets, we have been pursuing a market diversification strategy for years and have made sound progress. In 2019, based on what we have done, we will encourage businesses to further optimize their business layout in the international market and take into account factors like bilateral trade and economic relations, trade potential and resource endowment to focus on exploring around 30 overseas markets, including developed countries’ markets that need deep ploughing and potential emerging markets and developing countries’ markets along the Belt and Road which we need to explore actively. We will continue to support businesses in diversifying trade market by strengthening trade promotion, public information services and government institutional guarantees, among others. Thank you.

China Business News: On January 9, 2019 (Washington, D.C.), the US, EU and Japan issued their fifth joint statement on global trade. According to the Statement, the Ministers advanced discussions on their shared objective to address non market-oriented policies and practices of third countries. Has MOFCOM noted the concerns in the Statement, such as overcapacity, state-owned enterprises and impediment to innovation? Does it mean there are bigger divergences in the international community on the international trading system? What measures will China take to bridge the gaps on these issues in order to advance globalization?

Gao Feng: We noted that the US, EU and Japan issued a joint statement again recently. With different economic systems, the 164 members of the WTO, in different stages of social development, have their own focus on trade sectors and issues.

China supports and participates actively in reforming the global economic governance system. At the same time, we believe the multilateral trading system represented by the WTO should continue to be the cornerstone of the existing international trade and economic order, and basic WTO principles should not be challenged. We do not think it is appropriate for certain members to impose their standards on others. All members should resolve disputes through dialogues on the basis of mutual respect and equal-footed consultation, jointly safeguard and strengthen the multilateral trading system and advance trade liberalization and economic globalization. Thank you.

National Business Daily: Recently in a media interview at the mention of consumption upgrading, Minister Zhong Shan stressed bringing industrial goods to the countryside and agricultural goods to urban areas. Has MOFCOM formulated any implementation measure in this regard?

Gao Feng: “Bringing industrial goods to the countryside and agricultural goods to cities” is an important work of MOFCOM to further implement the action plan on consumption upgrading. In 2019, we will continue to move forward with implementation of relevant measures on the supply side in a bid to energize both rural and urban markets.

With respect to industrial goods going to the countryside, we will facilitate rural consumption, improve the quality of consumption in rural areas, and reduce the rural consumption cost so that rural residents have a better access to industrial goods. For example, we will improve rural commerce circulation infrastructure to engage more actively with postal services, banks, and e-commerce companies, revamp traditional retail outlets, countywide e-commerce public services centers and rural e-commerce services points, and expand the scope of functions to paying agency, deal brokering, small sum loans, and other conveniences. We will promote enterprises in the sectors of fast-moving consumer goods, food, household chemicals, financing, insurance and others to develop products and services that suit rural consumption market. We will encourage rural commerce circulation businesses and retail outlets to operate as franchises, support concerted delivery of postal services, courier and logistics companies and help reduce the cost and enhance the efficiency of rural circulation.

With respect to agricultural goods going to cities, we will work on three areas to establish smooth channels for farm goods. First, we will facilitate connection between producing and marketing through various promotion activities so that seasonal agricultural produce is easy to sell for a good price. Second, we will promote connectivity between farmers and businesses by establishing a long-term mechanism to connect farming and marketing via various ways such as made-to-order agriculture, integrated farming and marketing, equity cooperation and others. Third, we will improve the retail network and guide local governments through rebuilding local wet markets, farmers’ markets, convenient stores and other infrastructure facilities, improve management and services, and provide people with safe and easy access to in-season farm produce in season

CNR: We’ve noted that recently the General Office of the State Council issued the Guiding Opinions on Alleviating Poverty through Consumption which stressed widening marketing channels for farm produce in poor regions. What challenges are facing production, circulation and consumption of agricultural produce? Could you introduce the data relevant to development of e-commerce industry in rural areas last year?

Gao Feng: Chinese agriculture is characterized by the small scale of production and large size of market. Agricultural production lacks standardization and scale economy. Primary processing capacity in the location of farm produce is insufficient. Some regions, particularly those in deep poverty, suffer relatively higher logistics cost at the “first mile”, which to some extent restrains the efficiency of taking agricultural produce to the market.

In recent years, MOFCOM has cooperated with Ministry of Finance and the Poverty Alleviation Office of the State Council in continuous efforts to implement demonstration projects of rural e-commerce and supported 1,016 model counties in 28 provinces and prefectures. Among them, 737 are national poverty-stricken counties, accounting for 88.6% of the total in China. In 2018, the 756 model cities in four batches achieved a total online retail value of 619.24 billion yuan, up by 43% year-on-year. More than 1,000 country-level e-commerce services centers and logistics and distribution centers and over 80,000 rural service points have been set up.

Going forward, MOFCOM will follow through on the requirements of the Guiding Opinion, and work together with relevant agencies to expand the marketing channels for agricultural goods in poor areas and strive to include all eligible national poverty-stricken counties in the demonstration program. In the meantime, we will encourage e-commerce businesses to establish a mechanism to help counties in deep poverty through matchmaking. In doing so, farm produce from poor regions will sell more easily online. Thank you.

Beijing TV: My question is about home services market. What about the supply of home services for the upcoming Spring Festival? What progress has been made in drafting standards of the industry?

Gao Feng: We are working on the following things to ensure supply of home services during the Spring Festival. First, we encourage cities that have huge demand to establish a long-term stable connection with regions with abundant home services resources. Second, we promote the development of internet+ home services. Third, we foster a batch of trustworthy home services enterprises that are able to provide standard services.

As far as we know, local commercial authorities in Beijing and Shanghai are taking various steps to make overall arrangement for home services providers to work in the Spring Festival, in particular those in housekeeping, in-home elderly care, and baby and mother care at home. For example, Beijing has confirmed 51 home services companies engaging in supply of home services in this Spring Festival. It is estimated that around 30,000 service providers will remain at their posts. An online platform is also developed for monitoring the orders of home services to serve clients well. Other cities have similar actions in the works. We will work together with local commercial authorities to use multiple measures to maintain a stable and orderly home services market during the Spring Festival.

As for standards-setting in the home services industry, we have worked with relevant agencies in recent years to step up efforts in formulating and revising standards. We have issued national standards such as Quality Specifications for Mother and Baby Care Services and Rating and Assessment of Home Services Organizations, over 20 industry standards on home services and managerial techniques, and over 180 local standards in 16 provinces, prefectures and cities including Beijing, Tianjin and Jilin. Going forward, we will step up efforts to improve standards on home services and facilitate compliance of the industry. Thank you.

Any other questions?

If not, this is the end of today’s press conference. Thank you.


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