[Gao Feng]: Dear friends from the press, good afternoon. Welcome to the online press conference hall of the Ministry of Commerce and participate in today's regular press conference of the Ministry of Commerce. Today, we are very pleased to invite Mr. Li Xingqian, Director of the Foreign Trade Department of the Ministry of Commerce, and Mr. Wang Bin, Executive Deputy Director of the Department of Market Operation and Consumption Promotion. I am Gao Feng, spokesman for the Ministry of Commerce. We will introduce to you the relevant work of the Ministry of Commerce and answer questions from you. First of all, I have a piece of information to release.

[Gao Feng]: It is about China’s service outsourcing in 2019.

China’s service outsourcing development presented the following five features in 2019:

First, the scale of the industry expanded steadily, and the executed amount exceeded 1 trillion yuan for the first time. In 2019, the value of service outsourcing contracts undertaken by Chinese enterprises was 1,569.91 billion yuan (the same currency is used below), and the executed amount was 1,069.57 billion yuan, with an increase of 18.6% and 11.5% year on year respectively. To be more specific, the contract value of offshore service outsourcing was 920.79 billion yuan, and the amount of execution was 655.58 billion yuan, with an increase of 15.6% and 11.8% year on year respectively. (In US dollars, the contract value of offshore service outsourcing was US$138.91 billion, and the executed amount was US$96.89 billion, with a year-on-year increase of 15.4% and 9.3% respectively.).

Second, the structure was further optimized, and high-end business continued to develop rapidly. In 2019, the executed amount of offshore information technology outsourcing (ITO) undertaken by Chinese enterprises was 289.43 billion yuan, up 9% year on year, accounting for 44.1% of the total offshore executed amount. More specifically, the executed amount of R&D services, the main sector of ITO, reached 232.78 billion yuan, accounting for 80.4% of the total offshore executed amount. The executed amount of offshore business process outsourcing (BPO) amounted to 118.39 billion yuan, up 30.4% year on year, accounting for 18.1% of the total offshore executed amount, of which the executed amount of business operation service, the main sector of BPO, was 76.38 billion yuan, accounting for 64.5% of the total offshore executed amount. The executed amount of offshore knowledge process outsourcing (KPO) was 247.76 billion yuan, up 7.6% year on year, accounting for 37.8% of the of the total offshore executed amount, of which the executed amount of design services, the main sector of KPO’s, reached 157.42 billion yuan, accounting for 63.5% of the total offshore executed amount. Pharmaceutical and biotechnology R&D services, inspection and testing services, Internet marketing and promotion services, and e-commerce platform services, which are representative of high-end productive service outsourcing business, grew rapidly, up 15.3%, 20.5%, 37.1%, and 53.2% year on year respectively.

Third, the growth in the US, the EU and the Belt and Road market accelerated, with more than half of the business concentrated in the top three markets. In 2019, the executed amount of service outsourcing from the US undertaken by Chinese companies was 132.58 billion yuan, up 10.3% year on year, 5.6 percentage points faster than that in the previous year. The executed amount of service outsourcing from the EU undertaken by Chinese companies was 111.19 billion yuan, up 17.6% year on year, 10.7 percentage points faster compared with that in the previous year. The executed amount of offshore service outsourcing from countries along the Belt and Road amounted to 124.95 billion yuan, up 12.4% year on year, 4.4 percentage points faster than that in the previous year. In terms of business scale, the US, the EU and China’s Hong Kong were the top three outsourcing markets of China, accounting for 54.5% of the total awarded contract value.

Fourth, the industrial transfer accelerated, and the regional layout was further optimized. With the nationwide promotion of the supportive policies for the service outsourcing industry, business transfer to third- and fourth-tier cities accelerated. In 2019, the executed amount of offshore service outsourcing undertaken by non-service outsourcing demonstration cities was 97.83 billion yuan, up 37% year on year, accounting for 15% China’s total amount, 3 percentage points higher compared with that in 2018. From the regional perspective, the executed amount of offshore service outsourcing undertaken by the Yangtze River Delta region reached 324.66 billion yuan, accounting for about half of China's total amount. It was the main area where China's service outsourcing industry conglomerated. The executed amount of offshore service outsourcing undertaken by the Guangdong-Hong Kong-Macao Greater Bay Area, Beijing-Tianjin-Hebei and the three provinces in Northeast China amounted to -82.4 billion yuan, 64.27 billion yuan and 24.62 billion yuan respectively, with a year-on-year increase of 4.9%, 26.3%, and 10.8% respectively, accounting for 12.6%, 9.8% and 3.8% of China’s total amount respectively.

Fifth, the emerging forms of employment expanded employment space, which played a significant role in stabilizing the employment of college graduates. As the transformation and upgrading of service outsourcing accelerated, new forms such as crowdsourcing, cloud outsourcing, and platform subcontracting continued to emerge and developed rapidly, providing young people, especially college graduates, with new channels of flexible employment, and promoting the development of emerging forms of employment such as the gig economy. In 2019, China's service outsourcing industry increased 1.03 million employees, of which 606,000 have a bachelor’s degree (including associate college) or above. By the end of 2019, there were a total of 11.72 million employees in service outsourcing industry, including 7.501 million people with a bachelor’s degree (including associate)or above, accounting for 64% of the total number of employees in the outsourcing industry, which played an important role in stabilizing the employment of college graduates.

In 2020, the Ministry of Commerce will resolutely implement the decisions and deployments of the CPC Central Committee and the State Council, and organize the competent commercial departments in all localities to actively cooperate with relevant departments to implement various policies beneficial to enterprises. The 20 policies and measures that support the acceleration in transformation and upgrading of the service outsourcing industry will be implemented to promote the industry to transform and upgrade towards the direction of high technology, high added value, high quality, and high efficiency.

[Gao Feng]: The above is the information I would like to release and now I’d like to answer questions from the media.

The floor is open now.

CMG: How is the supply of the daily necessities in Hubei, including Wuhan? Some cities in Hubei have sealed off residential districts. What has MOFCOM done to ensure the market supply?

Wang Bin: The daily necessities market in Wuhan and Hubei has maintained stability with adequate supply in general. On February 18, a province-wide survey on the dynamic inventory of grains, edible oil and milk, among others can meet the supply for 15 days. The dynamic inventory of frozen pork meat was sufficient for seven days, which is able to ensure the supply for more than ten days adding government reserve of frozen meat. Vegetable inventory can support five-day supply. The two big wholesale market of Baishazhou and Sijimei in Wuhan saw 4,400 tons of vegetable trade, up by 7% from the day before, and an increase of 1.4-fold compared with early February. The inventory reached 9,123 tons, up by 0.3% from the day before and by 8% from early February.

Residential quarters in Wuhan, Huanggang and other cities in Hubei have been sealed off, forbidding residents from moving outside their living districts unless necessary. Under the new circumstances, governments at all levels and businesses have acted fast to ensure people’s consumption demand can be met during the period of epidemic prevention and control. First, community committees in the neighborhood would purchase daily necessities on behalf of those sealed-off residents, which would be delivered by retail businesses. Retailers have come up with various packages of vegetables, fruits, grains and edible oil, which are sold at nearly the same price as sold individually, to facilitate the community-based purchase. Second, we encourage retailers to adopt the model of online order plus offline delivery and publish information on the e-commerce platform so that it is convenient to buy food online. Third, we help the rural cooperatives partner with communities so that the former can deliver goods directly to the latter. All this has done well to ensure the market supply of daily necessities for the citizens.

In the meantime, we realize there is a shortage of packaging and delivery people, vehicles for delivery, and insulated food delivery boxes. Commerce authorities at all levels are working hard to address those difficulties. For example, we call on volunteers to help in the communities and supermarkets. We also hope that other provinces and cities can coordinate businesses to donate supplies such as disposable food containers and insulated boxes to Wuhan. Thank you.

Xinhua News Agency: We’ve noted that MOFCOM has established a joint supply mechanism involving Hubei and its eight neighbors in order to guarantee the market supply of daily necessities in Wuhan. Could you brief us on what it is and how it works?

Wang Bin: After Wuhan was locked down to contain the infection on January 23, MOFCOM immediately instructed commerce authorities in Shandong, Anhui, Jiangxi, Henan, Hunan, Chongqing, Guangxi and Yunnan on that night to work with Hubei Department of Commerce and Wuhan Bureau of Commerce to put in place a interprovincial joint supply mechanism with a view to ensuring the supply of daily necessities in Wuhan, Hubei. A WeChat group was created to understand what’s happening on the ground in Wuhan and to coordinate the allocation of daily necessities. The eight provinces have by far sent more than 25,000 tons of daily necessities to Wuhan. The mechanism has played an active role in ensuring the constant supply of daily necessities.

First, better deployment. The CPC Leadership Group of MOFCOM has firmly followed through General Secretary Xi Jinping’s important speeches and instructions since the outbreak of the epidemic. Minister Zhong Shan organizes and oversees the leading group on epidemic response. At a video conference on epidemic response within the commerce system, Minister Zhong Shan noted that the nine-province joint supply mechanism should be well implemented to create a highly efficient nationwide supply security net with clear priorities. Minister Zhong Shan has put forth more clear requirements at many other CPC Leadership Group meetings and the epidemic leading group meetings on how to improve the interprovincial joint supply mechanism and put relevant measures into practice in earnest. The Vice Minister in charge of supply oversees the implementation on the ground and gives more detailed guidance to relevant departments to refine and substantiate the work mechanism. MOFCOM has coordinated various parties to solve problems and allocate supplies cross provinces in an effort to guarantee the supply of daily necessities in Wuhan.

Second, keep improving the mechanism. MOFCOM acted swiftly to create the nine-province joint supply mechanism after the outbreak. It has issued papers to deploy and guide relevant provinces and cities to improve the mechanism in terms of organization, tasks, allocation channels, resumption of work, new work methods, etc. so as to fully ensure the market supply of daily necessities in Wuhan. The scope of the mechanism has been expanded. Provinces, cities and prefectures keep lending capable hands to the mechanism. A batch of key supplying enterprises including the three big retail chains in Wuhan and Henan Shuanghui have been incorporated into the mechanism progressively. Officials in charge of the relevant departments are also in the WeChat group to directly coordinate the mechanism. The WeChat group now has over 70 people, compared with 10 initially.

Third, ratchet up monitoring. MOFCOM has initiated several systems to gain full knowledge of the market supply of daily necessities and the accurate situation of supply sources in Hubei and Wuhan, including daily monitor on necessities market, daily report on emergency goods database, situation report on abnormalities on the daily necessities market by commerce authorities in 31 provinces, autonomous regions and municipalities, and situation report on the supply of eight kinds of daily necessities. There are staff designated to gather the reports and directly contact Wuhan in order to identify the first clue of problems and nip them in the bud. The CPC Leadership Group of MOFCOM sent a working group to Wuhan to collect firsthand and genuine information on the market in Wuhan so as to coordinate the efforts to solve salient problems facing the supply in Wuhan.

Fourth, facilitate connection and allocation. The WeChat group is used as a platform for policy outreach, supply source connection and transportation coordination in order to make sure the much-needed supplies can arrive in Wuhan in a timely manner. Local governments have been fully supportive in ensuring the supply of daily necessities in Wuhan, Hubei.

Chongqing dispatched the first batch of supplies including 400 tons of vegetable to Hubei in the small hours on January 25. Shandong government allocated emergency disinfection supplies of 20 tons of ethanol and nearly 10,000 tons of fruits and vegetable to Hubei. Six special trains run between Guangxi and Wuhan for assistance. Henan has fully leveraged the role of large vegetable wholesale markets and organized and transported vegetable in multiple batches. Yunnan has set up a special work team to provide vegetable and pork, among others, to Wuhan. Hunan has mobilized every aspect of the society to constantly increase the supply of daily necessities to Wuhan.

Fifth, jointly overcome difficulties. Restrictions on movement of people and vehicles for epidemic prevention and control in many regions have made it difficult to ship daily necessities. MOFCOM has worked with local commerce authorities to remove the barriers. So far, we have handled more than 50 cases concerning transportation stoppage, lack of supply sources, and resumption of work. For example, we worked with Jinluo Group to ease the shortage of frozen pork in Wuhan. We worked with Zhejiang Department of Commerce and Ningbo Bureau of Commerce to clear the road for vehicles of Wuhan Zhongshang Commercial Group. We worked with Tianjin Bureau of Commerce to help Sanquan Food factories resume production, which is a key supplier to Wuhan. We also worked with Henan Department of Commerce to clear the road for vehicles transporting vegetable from Wanbang wholesale market, which is a primary source of vegetable of Wuhan.

Sixth, strengthen supply support. We further intensify measures to ensure the supply in accordance with stricter prevention measures in Wuhan. MOFCOM works with the NDRC to formulate work plans on stabilizing the price and ensuring the supply of vegetable and meat during the period of disease prevention and control. Henan Wanbang, Chongqing Shuangfu and Mianyang Gaoshui are identified as three major suppliers of vegetable for Hubei. In collaboration with the SASAC and the NFSRA, MOFCOM identified 150 enterprises specialized in rice, flour, edible oil, vegetable, instant food and others as the key suppliers for Wuhan. We have taken stock of production capacity and pin down the inventory and contact persons of the businesses, and released the list of those businesses to local authorities so as to facilitate the allocation of resources. The key enterprises under the mechanism of joint supply have all restarted operation in general. Rice, flour, noodles, edible oil, meat, milk and instant food are sufficient. For example, there are enough rice and flour, edible oil and meat for Wuhan for 122 days, 432 days and 61 days respectively. Thank you.

CNBC: On the influence of the outbreak on the supply chain. Which sectors are more heavily influenced and which are less influenced?

Li Xingqian: We want to thank the public and friends from the media for your support and help for China’s effort to fight NCP and develop foreign trade. Since the outbreak of NCP, the Ministry of Commerce has acted with firm resolve to implement the decisions and plans made by the Party Central Committee and the State Council and attached great importance to the prevention and control of the outbreak. We organized and mobilized localities, industries and foreign trade companies as soon as possible to give active responses and expand the import of goods and materials for NCP prevention to serve the prevention effort across the country. According to monitoring and statistics, till today, more than 1.2 billion masks and 13 million protective suits have been imported through various means, including more than 50 million masks and nearly 1 million protective suits imported by cross-border e-commerce platforms and companies in 59 cross-border e-commerce comprehensive pilot zones. International supply of medical products has made important contribution to China’s efforts in preventing NCP and made up for the short-term insufficient production and supply in China. Making sure there are enough medical supplies is a comprehensive challenge for all steps of import trade. Practice has shown that all steps of the import chain quickly responded and operated with high efficiency and goods are delivered to the end user in the shortest time possible. The entire procedure is generally smooth and effective.

While preventing and controlling NCP, the Ministry of Commerce is constantly keeping a close eye on the influence of NCP on foreign trade and guiding local commerce offices in tracking developments of foreign trade and introducing targeted policies and measures to well stabilize foreign trade for the whole year. According to the constant monitoring of major regions and sectors, if the outbreak lasts long, agricultural produce, food and other labor-intensive sectors with long industrial chains are expected to be heavily influenced. As for delayed logistics and transportation and other difficulties reported by companies, we have already introduced many policies and measures supporting foreign trade companies to reduce costs and efficiency and pave the way for the stable growth of foreign trade.

We have also noticed that the WHO speaks highly of China’s efforts and progress and stress that it does not recommend limiting travel and trade. The government of China is confident, capable and certain that it will win the battle of epidemic prevention and control and has a high sense of its responsibility to maintain global public health security. Amid slowing global economic and trade growth and growing challenges, both promoting economic growth and tackling the challenge of diseases will require the countries around the world to unite and work together to jointly safeguard unimpeded trade and contribute to the stable growth of world economy and trade and human health. Thank you.

Phoenix TV: How do you view the influence of NCP on consumption? What impact will the decreasing consumption have on the economy? How long is the NCP expected to last? How do you view the annual consumption? Is MOFCOM planning to introduce relevant policies and measures to offset such influence, promote consumption and help companies pull through?

Wang Bin: As for the influence of NCP on consumption, we need to take a comprehensive, objective and rational view. As the National Bureau of Statistics has not released the statistics for January and February, our initial analysis and judgement are that NCP will have a relatively large impact on consumption in the short-term, mild impact in the midterm and gradually reduced impact later. NCP will not change the stable and constantly upgrading long-term trend of consumption in China.

As for the time intervals, the impact on the consumption in the first quarter is the biggest. NCP peaked by late January and would have the largest influence on January and February, particularly February; there is hope that the consumption market would bottomed out in March; the consumption market is still expected to be in a period of recovery in the second quarter and would further improve in the second half of this year. Some compensatory consumption under the influence of NCP is further released.

Structurally speaking, catering, accommodation, tourism, culture, recreation and other service consumption are under the largest influence. Regarding varieties, automobile, home appliances, gold and silver jewelry, clothing, shoes and hats and other consumer durables are under the largest influence, while the influence on food and articles for daily use is limited and the sales of mask, disinfectant, infrared thermometer and other protective appliances grow significantly. Regarding business format, department stores, large shopping centers, street specialty stores and franchised stores are under the largest influence, while the sales of supermarket and convenience stores are rising. In terms of business models, the influence on offline consumption is relatively big and the influence on online consumption relatively small, as internet and information consumption grows steadily.

A pressing matter of the moment is to step up the implementation of the decisions and plans made by the Party Central Committee and the State Council and guide localities in differentiated prevention and control according to different zones and classifications and gradually get production and daily life in order. MOFCOM has made an arrangement that under the prerequisite of ensuring security in NCP prevention, the localities will make scientific assessment, conduct tiered management and control, highlight priorities, gradually expand the scope and organize and help companies return to full business. In addition, we would step up the introduction of targeted supportive measures to help companies pull through and minimize the influence of NCP on consumption. Thank you!

Economic Daily: Recently, under the influence of NCP, foreign companies are faced with some difficulties when workers try to return to work and resume production. How about the condition now? Apart from existing measures, what measures will be taken by MOFCOM to reduce the burden of foreign trade companies?

Li Xingqian: Resuming production is a key issue in stabilizing the development of foreign trade. You might have noticed that many foreign trade companies, including cross-border e-commerce companies and foreign trade companies specializing in medical products and agricultural products such as meat, have been in normal operation since the Spring Festival, playing an important role in expanding import and ensuring domestic supply. In addition, from February 10, apart from Hubei Province, qualified foreign trade production companies in various places have gradually resumed production, with three features at present:

First, foreign trade production is resuming quickly. With the guidance and help of localities and departments, the general progress of foreign trade companies in resuming work has sped up. Provinces strong in foreign trade have played a clear leading role: more than 70% of major foreign trade companies in Zhejiang and Shandong have resumed production; Guangdong, Jiangsu and other major foreign trade provinces are quickly resuming production, with progress in line with expectations.

Second, making progress according to different zones and classifications. In general, according to the arrangements made by the Party Central Committee and the State Council, the localities are launching targeted prevention and control according to different zones and classifications and will steadily promote the efforts of foreign trade companies in resuming production in an orderly manner. Regions with low risks are comprehensively getting production in order; regions with medium risks will get production back in order as soon as possible; regions with high risks will gradually resume production according to their actual conditions. Influenced by NCP and whether employees have returned to work, the actual level of work resumption in different localities will also be different.

Third, the unbalanced progress of work resumption is improved. At present, the undersupply of raw materials and the connection of domestic and international logistics are well improved; the coordination of upstream and downstream links in the industrial chain recovered quickly; and the logistic channels of different sectors are quickly resumed according to the needs of companies and products.

In terms of policies and measures on foreign trade, optimizing trade policies and measures and reducing the impact of NCP is one of the important tasks of MOFCOM at present. The Party Central Committee and the State Council have made a series of important decisions and plans. Implementation would be a priority for our policies and the need of companies represents our policy directions. At present, while strengthening the prevention and control of NCP, we will well stabilize foreign trade and support foreign trade companies in stepping up work resumption, securing the market, ensuring agreements are honored and getting more orders, offer more support to trade financing, fully leverage the export credit insurance and actively participate in international coordination and cooperation to create a favorable domestic and international environment for foreign trade companies. Thank you!

China News Service: Thank you, spokesman. I’m with the CNS. It’s been reported that the epidemic has affected some of the overseas projects of Chinese companies in varying degrees. Could MOFCOM share more details? What measures will be taken to promote the normal operation of these projects?

Gao Feng: Currently, Chinese businesses’ overseas investment and operation projects are running smoothly on the whole. COVID-19’s impact on Chinese business going global is temporary and mainly reflected in personnel exchange, business talks, and equipment and material supply. Overall, it’s under control.

To effectively reduce the impact, MOFCOM has actually done some work. Moving forward, we’ll further strengthen related measures and help Chinese businesses advance overseas projects steadily.

These measures include: first, we strengthen communication and coordination with host countries and facilitate the entry and customs clearance of personnel and equipment needed by the projects; second, we streamline the approval and management process for outbound investment, accelerate paperless procedures for outbound investment filing (approval) for full-cycle on-line processing; third, we coordinate and support industry intermediaries to provide legal counsel for overseas operators; fourth, we leverage overseas Chinese companies and ODI liaison and service platforms to step up risk alert, response guidance and services; fifth, we establish rapid reaction mechanisms for overseas Chinese businesses to collect their practical difficulties and problems and help them actively deal with the epidemic. Thank you.

South China Morning Post: Recent media reports have it that due to containing efforts, transport and port transit are affected, holding up thousands of containers of frozen pork, chicken and beef at some of the key ports in China. Could you confirm this? How have import transport and export shipping been affected?

Li Xingqian: We’ve noted the short-term holdup of frozen meat at certain ports as a result of the epidemic, which disrupts local chains of logistics and causes labor shortage at some of the port cold storage warehouses.

Currently, related authorities are taking targeted measures to unblock the meat holdup at the ports. MOFCOM is actively working with related departments for a coordinated solution. MOFCOM has set up an information sharing mechanism with the Ministry of Transport to issue real-time updates on national port capacities through the information platform for commodities import and to guide businesses to smooth and divert logistics traffic. Related issues are improving with significantly faster clearance for meat imports and pickups outnumbering new arrivals. The released meat is quickly entering the market with no new backlog. Geography-wise, apart from the busy ports of Tianjin and Shanghai, other major ports like Guangzhou, Shenzhen, Qingdao, Dalian and Xiamen all have ample space and potentials. Overall, this is a temporary, interim and localized problem. The impact on imports is largely under control. It is believed that with positive progress in the containing efforts and orderly return to business, related issues will be addressed promptly. Thank you.

MNI: Due to COVID-19, the sales of passenger vehicles in China in January saw the largest fall in 15 years. We’ve noted that Foshan, Guangzhou is the first to act with RMB 3000 yuan in subsidy for any new car scrappage deal to boost car consumption. Will other cities follow up? What other measures will be introduced to promote consumption?

Wang Bin: Like you said, in January, car sales dropped 18% year-on-year. Our analysis put this down to multiple factors. First, the car industry went through a period of adjustment last year; second, this year’s Spring Festival fell in January, reducing five effective working days from those of last year. Chinese New Year is not a boom season for car sales. Third, the epidemic is having a lagging impact on car consumption.

Currently, the reopening of car dealers and consumer purchases are recovering slowly, with an impact on car sales in the short term. But it’s for sure that China’s car market has huge space and potentials for development. Car demand remains robust. The impact of the outbreak on the industry is temporary. As the epidemic gets under control and life and business returns to normal, compensatory consumption will pick up significantly afterwards.

Moving forward, MOFCOM will earnestly follow the decision of the CPC Central Committee on actively stabilizing the consumption of cars and other traditional big-ticket items and the spirit of the Opinions of the State Council on Expediting Circulation to Promote Commerce Consumption and work with related departments on policy measures that further steady car consumption and reduce the impact of the epidemic. At the same time, we encourage the localities to introduce measures according to changing circumstances to promote car consumption by encouraging the purchase of new energy vehicles, increasing purchase quotas for traditional vehicles, and offering scrappage deals. Thank you.

Caixin: I’m with Caixin. EU Trade Commissioner Phil Hogan said that the China-EU BIT negotiations might be affected by COVID-19 and could not be concluded in September as planned. What’s MOFCOM’s response?

Gao Feng: To my knowledge, the negotiations are moving forward as agreed earlier. Thank you.

ITAR-TASS: Hello. I’m with ITAR-TASS. Some Russian companies worry that the spread of the coronavirus might have a very negative impact on key supply chains. What’s MOFCOM’s comment? Will Chinese companies make good on their export contracts with Russia? Will the Chinese government take effective management measures?

Li Xingqian: Since the outbreak, Russia has supported China’s fight against the epidemic through multiple channels and sides, which we recognize and appreciate.

The challenges posed by the epidemic to supply chains are short-term and temporary. At present, with the guidance and assistance of the departments and local governments, Chinese trade companies are speeding up their return to work and production. We have announced several policy measures to address business difficulties in hiring and supply of raw materials, logistics and protective equipment for higher rate of contract fulfillment. In the face of the issues related to trade, MOFCOM has published the Circular on Stabilizing Foreign Trade and Investment in Response to COVID-19. Related policies are being implemented. At the same time, a host of policy measures to bolster foreign trade will be announced successively. We hope and believe that all trading partners including Russia will continue to show full understanding and firm support for China and view the outbreak objectively and rationally to facilitate normal bilateral economic and trade cooperation. Thank you.

China Daily: Since the start of the outbreak, MOFCOM has worked actively on emergency supply to ensure ample market supply of daily necessities. What are the plans for ensuring the supply of daily necessities in the next step?

Wang Bin: The nation is united as one in the battle against the COVID-19. As we ensure market supply of daily necessities, we are also closely following market dynamics and thinking about ways to improve market supply system in the long run. We aim to promote the circulation development, meet people’s demand, and push for steady and continuous growth of consumption. Here I’d like to share with you some of our initial thoughts.

First, food is critical. Consumers will only rest assured when market supply is stable. Wholesale, retail, catering, and hospitality are important parts of the service sector that bear on people’s daily life. Government at all levels must take a serious attitude and take concrete measures to promote the market development and meet people’s demand for diversified and upgraded consumption.

Second, large wholesale market of agricultural produce, large supermarket chains, and convenience stores are encouraged to leverage strengths in the number of outlets, delivery and mobilization capacity and play an important role in ensuring supply during the outbreak. We need to rely on them and strengthen the backbone suppliers, improve an emergency management system, and be better equipped to respond to urgent and arduous tasks. We will continue to the make the best of the emergency supply mechanism and make it a priority it in the long run.

Third, in the most affected areas and cities like Wuhan, the online and offline integrated development has given birth to new ways of consumption, such as “order online and contactless delivery”, serving as new and broader channels to meet the basic needs of consumers. Going forward, we will accelerate the new business forms and models spawned by the integrated development of online and offline business, unlock untapped consumption potential, and make them one of the priorities in the reform and development of the circulation system.
Fourth, an important way to underpin market supply during the outbreak is the move agricultural goods to cities and transport industrial goods to rural areas. In the emergency supply, some weaknesses and gaps in the urban-rural coordination and the channels to enter urban or rural areas were exposed. In the next step, we will focus on improving cold chain logistics of agricultural products, infrastructure for concentrated delivery and processing, and two-way circulation between urban and rural areas. We will make the urban and rural delivery system more integrated, network-based, intensive, and standardized.

Gao Feng: In the interest of time, this is the end of today’s press conference. We will get back to you with answers to other questions that are interesting to you in other ways. Thank you.