Shu Jueting: Friends from the press, good afternoon. Welcome to the regular press conference of MOFCOM. I’d like to begin by briefing you on the FDI attraction in the first four months this year.

From January to April, China’s paid-in FDI was RMB478.61 billion, increasing by 20.5% year-on-year (equivalent to USD74.47 billion, a YoY increase of 26.1%; excluding banking,securities and insurance).

Sector-wise, the paid-in FDI for services was RMB351.94 billion, increasing by 12.5% year-on-year. The paid-in FDI for high-tech industries was RMB165.73 billion, increasing by 45.6% year-on-year, among which high-tech manufacturing increased by 36.7% and high-tech services increased by 48.3%.

Origin-wise, the paid-in FDI of the ROK, the United States and Germany increased by 76.3%, 53.2% and 80.4%respectively (including investment via free ports).

Region-wise, FDI in eastern, central and western China increased by 18.7%, 43.7% and 26.9%respectively.

This is my short briefing to you. Now I’m ready to take your questions.

PHTV: How do you evaluate the performance of import and export in April? What is the main reason for the continuous slowdown? How do you see the trend of import and export in the second quarter? What difficulties are foreign trade enterprises facing now, and what support can the Ministry of Commerce provide?

Shu Jueting: This year, China’s foreign trade got off to a steady start. In the first four months, import and export grew 7.9% year-on-year, showing strong development resilience. Since April, due to multiple internal and external factors, import and export growth has slowed down and foreign trade faces a complex and severe situation. That said, China’s foreign trade boasts a strong foundation. The fundamentals sustaining sound foreign trade growth in the long run remain unchanged. Favorable conditions and positive factors to maintain the stable development of foreign trade still abound. The Ministry of Commerce will work with all localities and relevant departments, and resolutely implement the decisions and plans by the CPC Central Committee and the State Council to stabilize the production and operation of foreign trade enterprises, and help enterprises maintain orders and market shares, ensure the smooth flow of foreign trade logistics, protect the integrity and stability of the industrial and supply chains, and give better play to the positive role of the open platforms in stabilizing foreign trade. Thank you.

SCMP: The Office of the U.S. Trade Representative recently announced the commencing of the review process of tariff actions on China; U.S. President Joe Biden also said that he is evaluating whether to reduce the additional tariffs on products from China. What is MOFCOM’s comment? How is the communication between the Chinese and U.S. economic and trade teams going in this regard?

Shu Jueting: Against the backdrop of the high inflation, that the US removes the additional tariffs on China is in the fundamental interests of American consumers and enterprises, which is beneficial to the U.S., China and the world at large.

The Chinese and US economic and trade teams have maintained normal communication. Thank you.

CNBC: Firstly, last week the European Union Chamber of Commerce in China said 23% of its corporate members are considering moving their investments from China to other countries because of the epidemic prevention and control measures. The EUCCC also said that foreign companies are planning to increase investment in Southeast Asia and other regions, opening factories, etc. while suspending investment in China. What is MOFCOM’s comment? Secondly, how is the e-commerce consumption affected since the current wave of the epidemic? How can the policy initiatives introduced locally promote consumption?

Shu Jueting: Regarding your first question, the Covid-19 pandemic has brought challenges to the world economy and the global supply chain. The fundamentals sustaining China’s economic growth in the long run such as strong resilience, sufficient potential and wide space for maneuver remain unchanged. China’s economy will continue to serve as a strong driver for the world economy to stabilize and recover. The open Chinese market will also provide more opportunities for enterprises from all countries to develop in China. We will further pursue high-level opening up, make the service system for foreign investment still better, provide targeted services, and create more opportunities for FIEs to grow in China.

Regarding the second issue you mentioned, the current epidemic has affected online consumption to some degree. In order to cope with the impact of the epidemic and promote sustained recovery of consumption, MOFCOM has proactively introduced initiatives. Recently, we have worked with relevant departments and organizations to launch the 4th Brand and Quality Online Shopping Festival & Quality African Products Online Shopping Festival. Many local governments also held distinctive, exciting supporting activities, which have greatly promoted online consumption and produced many bright spots. For example, the sales of several well-known brands are booming, with the market share steadily increasing. GI products are gaining popularity such as coffee, wine, nuts and other goods from Africa and BRICS countries. According to big data monitoring of key e-commerce platforms, up to now, the overall national online consumption has registered stable growth.

Since the beginning of this year, under the precondition of implementing pandemic control protocols and based on local conditions, local governments have put forth targeted pro-consumption measures, adopted a range of pro-business relief policies, and hosted a series of consumption promotion activities with local characteristics. All these efforts have contributed to revitalizing market vitality and promoting consumption recovery. For instance, Guangdong adopted several measures to further encourage consumption of automobiles and home appliances and revitalize retailing and food and drink industry. Jilin introduced measures to promote consumption recovery and unleash the potential of consumption. Hainan put forth eight measures to drive consumption back on track.

Going forward, we will work with relevant departments and localities to coordinate the prevention and control of the epidemic and consumer promotion, and make every effort to implement the new round of consumer initiatives introduced by the State Council, from upgrading traditional consumption, accelerating the development of new consumption, optimizing the consumption platforms, among others, continue to step up efforts to promote sustained recovery and upgrading of consumption, and better leverage the role of consumption in boosting the economy. Thank you.

National Business Daily: The recent State Council Executive Meeting has put forward numerous measures to support foreign trade companies, including the requirement of expeditiously introducing policies to facilitate replacement of cross-border e-commerce exports. What’s the latest development? What role will exports replacement play in boosting cross-border e-commerce?

Shu Jueting: New foreign trade models, such as cross-border e-commerce, are new drivers for foreign trade growth, as they respond to new trends in international trade and meet personalized and customized demands. In recent years, adopting a problem-oriented approach while stepping up top-level design, we have drawn up custom-tailored policies and measures together with relevant authorities. As new business models are evolving rapidly, the policy environment is also constantly optimizing. We are working with relevant authorities to explore policies and measures, including measures to facilitate replacement of cross-border e-commerce exports. These policies will help boost sound, sustainable and innovation-driven development of cross-border e-commerce, and ensure stable and high-quality foreign trade. Thank you.

China National Radio (CNR): L'Oréal recently announced establishment of its first China investment firm in Shanghai. What are the possible reasons for multinationals to locate new business units in Shanghai and expand their investment in China, despite the resurgence in the city? What are the new features of multinationals’ investment in China this year?

Shu Jueting: Let me answer your second question first. Three features can be identified for foreign investment in China in 2022. First, rapid growth. From January to April in 2021, China’s paid-in foreign investment increased by 38.6% from the previous year, and on such a high base, paid-in foreign investment this year continued to register a double-digit growth at 20.5% year-on-year. Second, rich substance. High-tech sectors played a significant role in attracting investment, with an increase of 45.6% from January to April, 25.1 percentage points higher than the national average. By sector, information services, research, development and design services, and electronic and communications equipment manufacturing saw an increase of 69.7%, 60.4% and 45.3% respectively. Third, steady progress in major projects. Local governments have worked hard to overcome the impact of the pandemic and attract investment. From January to April, China added to its portfolio 185 major foreign-invested projects with a contractual value exceeding USD100 million. That was equivalent to 1.5 new projects added per day. Projects of Volkswagen, Posco, Costco, Hitachi and other multinationals were funded as scheduled, which effectively contributed to the rapid growth of investment in China.

On your first question: The fact that multinationals are actively expanding investment in China demonstrates foreign investors’ strong confidence in China’s economic outlook, testifies China’s remarkable achievements of expanding opening-up and improving the business environment, and shows China’s strong appeal to foreign investment underpinned by its vast market, complete industrial system, sound infrastructure and abundant human resource. China will open its door even wider to the world, and foreign investors will enjoy an even better climate. As always, the Chinese government will continue to open its arms to foreign investors who seek to invest in China and share in China’s development dividend. Thank you.

Zhejiang Daily: According to data released by the China Federation of Logistics and Purchasing, recently China's warehousing index has been running low and consumption recovery facing constraints. What key arrangements will MOFCOM make to ensure logistic capacity and smooth transport and boost consumption?

Shu Jueting: As regards logistic capacity and smooth transport, following the unified plans of the State Council leading group on ensuring smooth logistics, MOFCOM works with related departments to remove impediments so that essential production supplies and daily necessities can “come in, move around, and go out”. Firstly, we guide local commerce authorities in promoting the use of unified national passes at a faster pace and making trunk transport more efficient. Secondly, we guide and coordinate the establishment of supplies transfer stations in key regions to ensure the transport of important production supplies and daily necessities. We guide local commerce authorities in better communicating and coordinating with health and epidemic prevention departments to guarantee the normal functioning of warehousing and logistic nodes while rigorously implementing COVID-19 prevention and control measures. Thirdly, we guide key commercial businesses and key logistics and distribution companies in deploying more supplies, manpower and capacity in places with COVID-19 cases so as to deliver daily necessities through the last mile to residents.

As regards boosting consumption, MOFCOM will earnestly implement the decisions and plans of the CPC Central Committee and the State Council, implement the strategy of expanding domestic demand, and coordinate COVID-19 prevention and control and consumption boost for the sustained recovery and upgrading of consumption. Firstly, we will make sure the policies are fully implemented. The General Office of the State Council recently issued the Opinions on Further Unleashing Consumption Potential and Promoting the Sustained Recovery of Consumption. We will strengthen inter-departmental coordination to implement related policies and measures at an early date. At the same time, we will step up research to enrich our toolbox with more policy options. Secondly, we will optimize consumption platforms and vehicles. We will move faster to foster and develop international consumption center cities and summarize and promote a number of typical successful practices. We will further facilitate the high-quality development of pedestrian streets, coordinate on fostering demo smart business circles and smart shops, accelerate the building of 15-minute community service circles for the convenience of residents and encourage the development of new business formats, models and scenarios. Thirdly, we will organize well-designed activities to promote consumption. While observing COVID-19 prevention and control protocols, we will organize the International Consumption Season and other activities when appropriate, and guide localities in carrying out diversified consumption promotion activities in various forms in light of their own conditions so as to inject a new lease of life into and reinvigorate the market for the sake of the sustained recovery of consumption. Thank you.

Shu Jueting: Have you got any other questions? If not, this brings us to the end of today’s press conference. Thank you.

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