21st Century Business Herald：On Jun.28th, Premier Li Keqiang of the State Council pointed out when chairing a meeting on stabilizing foreign trade that new measures to secure foreign trade and FDI should be developed with special emphasis on MSMEs and labor-intensive companies and assistance to tide over industry champions. What are MOFCOM’s considerations for drawing up such new measures?

Gao Feng: Following the decisions of the CPC Central and the State Council, MOFCOM is working intensively with related departments based on earlier research to work out new measures to stabilize foreign trade and FDI.
  
In terms of foreign trade, we will continue to implement existing policies and introduce related policies around securing employment, livelihoods and market actors with increased support for MSMEs and labor-intensive foreign trade companies. Main measures include improving means of tax rebates and accelerating the process; guiding financial institutions to ramp up financing support such as lending, credit insurance and guarantee; stepping up personnel exchange security; speeding up the development of cross-border e-commerce, among other new business types and models; and encouraging the creation of overseas warehousing with greater support for foreign trade service platforms.
  

As regards FDI, we will continue to balance growth promotion against base consolidation and improve the business environment for FDI to attract, reassure and stabilize investors. First, we will accelerate the implementation of the new negative list for foreign investment and ensure the prompt implementation of new open-up measures; second, we will get on with the amendment of the catalogue of industries for foreign investment to further expand the scope of encouraged investment, so that foreign investment of more categories can enjoy tax breaks and related incentives; third, we will step up services for key FDI projects and coordinate for the solution of difficulties facing FIEs and key FDI projects; fourth,we will revise and promulgate Measures for Work related to Complaints of Foreign-invested Enterprises, among other rules to further foster a market-oriented, law-based and international business environment. Thank you.

CNBC: With the growth of the Internet, more enterprises began to export their products directly to foreign consumers (businesses). What is the view of the Ministry of Commerce on this trend, and are there more relevant trends to share?

Gao Feng: The trend you mentioned is part of cross-border e-commerce retail export. In recent years, as a new form of foreign trade business, cross-border e-commerce retail exports have flourished, which has played a positive role in developing overseas markets, creating and keeping jobs for small and medium-sized enterprises. In 2019, the total cross-border e-commerce retail exports increased by 60% year-on-year. In the first five months of this year, cross-border e-commerce retail exports grew against the trend, with a year-on-year increase of 12%.   

In the next step, we will continue to further innovate policies, systems, management and services, and speed up the healthy and orderly development of cross-border e-commerce. Thank you!

China Business News: According to the statistics of the Ministry of Commerce and the State Administration of Foreign Exchange, from January to May 2020, China's industry-wide foreign direct investment was RMB 314.87 billion, down 1.3% year on year (or USD 44.85 billion, down 4.9% year on year). Is this related to the fact that many countries around the world have expanded the scope of investment screening and gradually increased restrictions on foreign investment since the outbreak of the COVID-19?

Gao Feng: Foreign investment is influenced by many factors, such as global trade and investment, economic expectations, investment climate of host country and emergencies. Generally speaking, in the first five months of this year, China's industry-wide foreign direct investment basically remained stable.

You mentioned recent practices of some countries to expand the scope of application of foreign investment review and tighten the review. As the global economy is facing tremendous downward pressure, China always believes the greater the difficulties, the more necessary it is for all parties to adhere to openness and cooperation, and join hands to meet the challenges through closer trade and investment cooperation. Generalizing the concept of national security and advocating protectionism leaves no one unscathed. We hope certain countries can create a fair, transparent and predictable investment climate for investors from all countries, continue to enhance trade and investment liberalization and facilitation, and make positive efforts to put domestic economy and world economy back on track for recovery and growth.

Phoenix TV: What’s the result of the 30th round of investment treaty negotiations between China and the EU? What is the biggest challenge for the time being?

Gao Feng: According to the consensus reached by Chinese and EU leaders at the 22nd meeting, the two working teams are having the 30th round of negotiations via video conference this week, focusing on the texts on rules and offers on the list.
  
Going forward, the two sides will move forward with the negotiations to reach the goal of conclusion within this year so as to benefit businesses and investors from both sides at an early date. Thank you!

Market News International: It is reported that China and India are ratcheting up regulation on import to restrict exports from each other due to the border tensions. How does it impact Chinese companies exporting to India? Will it affect RCEP negotiations?

Gao Feng: To start with, I want to clarify that China does not impose any restrictive or discriminatory measures on goods and services from India. India’s relevant steps have violated WTO rules and its WTO commitments. We hope India can rectify and remove the discriminatory practices against China and Chinese companies.

The progress of China-India economic and trade cooperation comes from the joint effort of our governments and business community, and serves the fundamental interest of our peoples. China values deeper practical cooperation with India in various fields. It is hoped that the two sides would move in the same direction to follow through our leaders’ consensus in economic and trade sectors, bring our economic and trade cooperation on a sound and stable track, and work for prosperity in our countries and the region as a whole.

As for RCEP negotiations, relevant parties are moving ahead steadily to pursue the fixed goals in agreed steps. Thank you.

Hong Kong Ta Kung Wen Wei Media Group: The US has announced the revocation of Hong Kong’s special status, including suspending the availability of export license exceptions. What is your comment?

Gao Feng: The legislation on safeguarding national security in the Hong Kong Special Administrative Region (HKSAR) is entirely China's internal affair that allows no foreign interference. China strongly opposes US unilateral sanctions against HKSAR.

We will firmly implement the principle of “one country, two systems” and oppose any external interference in Hong Kong affairs. We will continue to introduce policies to resolutely support the HKSAR government in developing local economy, improving people’s livelihood and new accomplishments. Thank you.

CCTV-4: The 2020 negative list for foreign investment has just been published. What will MOFCOM do to enforce the new negative list so that foreign-invested enterprises (FIEs) can truly benefit from it?

Gao Feng: The 2020 negative list will be administered on July 23. MOFCOM will work with the NDRC and other ministries to ensure its implementation and increase the benefits received by the FIEs. First, we will enhance policy analysis. We will encourage relevant departments and local authorities to improve how the negative list is introduced and explained to market entities, so that foreign investors and FIEs can be better informed of the list. Second, we will step up personnel training. We will work with relevant departments to enable local personnel to precisely understand, follow through and execute provisions of the negative list. Third, we will adjust relevant requirements in a timely fashion. We will coordinate efforts to make necessary adjustments to effective laws and regulations to make sure that the new opening-up measures are implemented in time. Thank you.

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