Shu Jueting: Members of the press, good afternoon. Welcome to MOFCOM Regular Press Conference. First, let me share with you the following information.

About China’s service outsourcing from January to April, 2022

From January to April 2022, Chinese enterprises undertook service outsourcing contracts amounted to RMB589.9 billion yuan (the same currency below), with an execution value of RMB387.2 billion yuan, an increase of 8.8% and 15.3% year-on-year respectively. Among them, offshore service outsourcing contracts amounted to RMB333.8 billion yuan with an execution value of RMB215.4 billion yuan, an increase of 7.0% and 10.9% year-on-year respectively. (In USD terms, from January to April, Chinese companies undertook service outsourcing contracts amounted to US$90.7 billion, with an execution value of US$59.5 billion, an increase of 12.6% and 19.6% year-on-year respectively. Among them, the contract value of offshore service outsourcing was US$51.4 billion and the execution value was US$33.1 billion, up 10.5% and 15.1% year-on-year respectively.) 

By business structure, from January to April, the execution value of offshore information technology outsourcing (ITO) undertaken by Chinese companies stood at RMB92.5 billion yuan, down slightly by 0.3% year-on-year. Those of business process outsourcing (BPO) and knowledge process outsourcing (KPO) were RMB42.4 billion yuan andRMB80.5 billion yuan, up 16.4% and 23.7% year-on-year respectively.

By geography, from January to April, the 37 service outsourcing demonstration cities in China undertook a total of RMB303.7 billion yuan of offshore service outsourcing contracts with RMB196.9 billion yuan in execution value, accounting for 91.0% and 91.4% of the national total respectively. The Yangtze River Delta region undertook offshore service outsourcing contracts amounting to RMB145.7 billion yuan with an execution value of RMB111.4 billion yuan, up 1.7% and 10.9% year-on-year respectively, accounting for 43.6% and 51.7% of the national total.

In the international market, from January to April, the execution value of the offshore service outsourcing China undertook from Hong Kong SAR, the United States and the European Union reached RMB50.7 billion yuan, RMB42.9 billion yuan and RMB28.3 billion yuan, accounting for a total of 56.6% of China’s offshore service outsourcing execution. China’s execution value for RCEP member countries stood at RMB50.5 billion yuan, an increase of 6.3%, accounting for a total of 23.4% of the total.

By business ownership, from January to April, private enterprises scored RMB62.7 billion yuan in execution value of offshore service outsourcing, accounting for 29.1% of the country, an increase of 42.5%, 31.6 percentage points higher than the national average growth rate. The figure for foreign-invested enterprises was RMB100.7 billion yuan, an increase of 7.7%, accounting for 46.8% of the national total.

In terms of employment, as of the end of April 2022, China's service outsourcing had absorbed 14.26 million employees, an increase of 8.1% year-on-year, including 9.18 million people with university education and above, accounting for 64.3%. From January to April, service outsourcing added 310,000 employees, an increase of 8.6% year-on-year, including 200,000 people with university education and above, accounting for 64.8%.

So much for the announcement. Now I’d like to take your questions.

The floor is open for questions.

MASTV: Covid-19 cases have re-emerged sporadically across the country. What measures has MOFCOM taken to ensure the supply of commodities, particularly meat, eggs, vegetable, milk and other daily necessities?

Shu Jueting: Given the domestic Covid development at present, MOFCOM has stepped up coordination with relevant authorities and local governments to better organize supply and align production and sales. For key prevention and control areas, we have actively worked with neighboring provinces to mobilize large wholesale markets and link them with local suppliers to ensure aggregate supply of daily necessities.

First, enhance market monitoring. MOFCOM’s task force for ensuring market supply has been keeping track of market operations across the country. It has improved monitoring of the amount and prices of daily necessity supplies, and rigorously implemented an in-time reporting system for abnormal market fluctuations. Our statistics show that daily supply of vegetable over the past week has stood at a normal level of 2.6-2.9 tons, and market supply of grain, edible oil, meat, eggs and milk has been abundant.

Second, leverage the coordination mechanism to ensure supply. Given the current favorable climate conditions, more vegetable has come to the market, and vegetable supply capacity for key Covid containment areas has been bolstered. Meanwhile, we have leverage the coordination mechanism’s role of concerting efforts from multiple sides to help one, and continue to ensure supply for key areas such as Shanghai.

Third, offer classified and dynamic guidance. Based on pandemic response efforts, we have urged key areas to restore business in a phased and orderly manner, to reopen supermarkets, malls, convenience stores, farmers’ markets and other supply outlets. We have also guided relevant local authorities to encourage reopening of key supermarkets and stores with ensuring effective Covid response measures as a prerequisite.

We will continue to keep close track of market supply changes, and work with relevant authorities and local governments to respond to new situations and problems with targeted measures, so as to do everything we can to ensure market supply of daily necessities in areas affected by Covid-19. Thank you.

National Business Daily: According to the latest updates from the National Bureau of Statistics, the toral retail sales of consumer goods decreased by 11.1% year-on-year, a new low since the beginning of last year, and the toral retail sales of consumer goods have been declining for four months in a row this year. What are the factors behind sluggish consumption? What’s MOFCOM’s outlook on this year’s consumption trends?

Shu Jueting: From January to April this year, the total retail sales of consumer goods were basically equivalent to that of the same period last year, and the sales of daily supplies and online sales continued to grow. The year-on-year decline in April was mainly attributable to the impacts of Covid-19 resurgence. Overall, such impacts are temporary, and do not change the strong resilience and abundant potential of China’s consumption, or the sound long-term fundamentals of consumer development. As Covid-19 is gradually put under control, and policies and measures to expand domestic demand and boost consumption are implemented and begin to deliver, consumption is expected to continue recovery and growth. Thank you.

Bloomberg: On Wednesday, U.S. Treasury Secretary Janet Yellen said that she was advocating for eliminating some punitive tariffs on Chinese imports imposed by the trump administration that “aren't very strategic” but are hurting U.S. consumers and businesses. What’s MOFCOM’s comment?

Shu Jueting: We have reiterated that amid high inflation pressure, removing additional tariffs on China meets the fundamental interests of U.S. consumers and businesses, and is beneficial to the U.S., China, and the world at large. Thank you.

Economic Information Daily: The 4th Online Shopping Festival for Brand and Quality Products and African Products has just concluded. Could you tell us about the festival this year?

Shu Jueting: Under the guidance of the Ministry of Commerce and other departments, the 4th Online Shopping Festival for Brand and Quality Products and African Products was successfully held from April 28 to May 12. As part of the series of activities to promote consumption, this online shopping festival mainly presents the following features:

First, brands are setting the trend in fashion for consumers. The online shopping festival attracted more than 100,000 brands. The sales of some "small and beautiful" and new brands have more than doubled compared with the same period last year.

Second, healthy, green and intelligent goods are widely favored. For example, the sales of camping tables, chairs and camping vehicles increased by more than 150% year-on-year, environmental-friendly board and smart bedside tables by more than 100%, and energy-efficient washing machines and fruit and vegetable cleaning machines increased by more than 30%.

Third, GI agricultural produce are widely recognized. During the online shopping festival, more than 160 kinds of GI products and local specialty agricultural produce were gathered in the special section of "Developing Agriculture by E-commerce", which boosted the online sales of high-quality agricultural produce. The sales of Guangdong Pummelo Peel, Zigui Navel Orange, Xinyang Maojian Tea and Hetian Jujube increased by 240%, 99.5%, 76% and 70.7% respectively.

Fourth, quality African and BRICS products are well-received. Ministry of Commerce have guided relevant localities and businesses in effectively promoting the sales of goods from Africa and BRICS countries in China through the live streaming of ambassadors and hosts and launching sections dedicated to specific countries. The sales of black tea from Kenya and coffee from Ethiopia increased by 409% and 143.1% respectively, while the sales of chocolate, red wine, seasonings and nuts from BRICS countries increased by 302.1%, 283.8%, 87.6% and 82.0% respectively.

Fifth, various measures have been taken by all to promote consumption. Under the guidance of the Ministry of Commerce and other seven organizations, various supporting activities with features have been organized, centered on the themes of real-life fashion, night economy and new brands. E-commerce platforms actively work with businesses with quality brands, and launch various promotion such as launching new products for pre-sale, limited-time offers or flash sales, so that consumers can get affordable and satisfactory products. Thank you.

Yicai: China’s FDI grew by 20.5% in the first four months this year. How is such double-digit growth possible given the high base from last year? Will such growth sustain in the second quarter?

Shu Jueting: We believe there are three drivers to the steady FDI growth this year. First, China remains an attractive market. Thanks to the concerted efforts of all regions and authorities to balance covid-19 control and economic and social development, the economic fundamentals remain just as solid and sound. Considering the immense market size in China, many FIEs remain optimistic about their prospect in China. The second reason is the effective implementation of opening-up policies. The new version of foreign investment negative list has lifted equity cap requirement for auto making and other industries, helping to attract more FDI to China. In response to the call for an easy business environment from FIEs, departments concerned have introduced a range of policies and measures, including by enabling their equal participation in government procurement and extending the individual income tax exemption for foreign nationals, providing greater predictability and confidence to FIEs. Thirdly, the investment environment continues to improve. In enforcing the Foreign Investment Law and its implementing rules, we have sorted out the inconsistent provisions and pushed for the revision, abolition, and introduction of over 500 legal documentation. The task force for key foreign-invested projects, under the foreign trade and foreign investment coordination mechanism, has played a coordinating role in solving problems for FIEs and pushing for the implementation of key projects. There has been significant progress in building a market-based, law-based and international business environment. China’s comparative advantages, in terms of infrastructure, human resources, and ancillary industries, continue to provide a sound environment for the growth of FIEs.

There are many challenges to the utilization of FDI in China, caused by multiple factors, but many of the favorable conditions for FDI attraction remain unchanged. MOFCOM will continue to act upon the decisions and arrangements of the CPC Central Committee and the State Council, and make every effort, along with other departments and local governments, to stabilize FDI, and provide a better business environment and services to FIEs in China.

Zhejiang Daily: This year marks the 30th anniversary of the diplomatic relations between China and the ROK. Does MOFCOM have any comments on the future of trade with the ROK and the implementation of the RCEP?

Shu Jueting: China and the ROK are close neighbors and cooperation partners. With the joint efforts of both sides, the bilateral trade and economic relations have grown rapidly, and the two countries have become important trading partners. Bilateral trade is over USD360 billion, and two-way investment is over USD100 billion. The two sides have effectively aligned development strategies, successfully implemented the Free Trade Agreement, steadily moved forward cooperation under the join industrial parks, and continue to deepen third-market cooperation. The industrial chains and supply chains have been deeply intertwined, and remain stable and unimpeded. China and ROK are both parties to the RCEP, which took effect earlier this year. It will provide broader space for further trade and investment cooperation between the two countries.

As we celebrate the 30th anniversary of diplomatic relations, China is ready to work with the ROK to implement the important common understanding of the two leaders, especially by focusing on the implementation of the China-ROK trade and economic cooperation plan 2021-2025, so as to deepen and widen trade and investment cooperation, ensure high-quality implementation of the RCEP, promote institutional building of RCEP, and jointly support trade liberalization and economic globalization, to the benefit of the two countries and two peoples. Thank you.

Shu Jueting: Any more questions? If not, this is the end of the press conference. Thank you.

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