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MOFCOM Regular Press Conference (June 23, 2022)

Shu Jueting: Members of the press, good afternoon. Welcome to MOFCOM’s regular press conference. First, let me share with you some information.

I. China’s outward investment and cooperation in the first five months of this year.

In the first five months of 2022, China’s non-financial ODI increased 2.3% year-on-year to RMB287.06 billion (equivalent to USD44.6 billion, up by 3% year-on-year). In breakdown, ODI in wholesale and retail went up by 20.8% year-on-year to USD8.08 billion, and the investment in construction, scientific research and technical services also increased. Non-financial direct investment in BRI countries reached USD8.19 billion, a year-on-year increase of 10.2%, accounting for 18.4% of the total during the same period and rising by 1.2 percentage points from the same period last year.

In the first five months of 2022, the turnover of foreign contracted projects was RMB344.34 billion, up 0.5% year on year (equivalent to USD53.5 billion, up 1.2% year-on-year). The value of newly signed contracts amounted to RMB507.2 billion, down 5.4% year on year (equivalent to USD78.8 billion, down 4.7% year on year). The turnover of contracted projects and the total value of the newly signed contracts with BRI countries stood at USD28.55 billion and USD38 billion respectively, accounting for 53.4% and 48.2% of the total.

So much for the briefing. Next I would like to take your questions.

The floor is open.

China News Service: In the first five months, the year-on-year growth rate of China's foreign investment slowed down to 17.3%, which further decreased from the previous four months. Some people think that China's COVID-19 prevention and control policy will influence the prospect of foreign investment in China. What is the response of the Ministry of Commerce? How to predict the trend of China’s foreign investment this year?

Shu Jueting: From January to May this year, the paid-in foreign investment in China was RMB564.2 billion, a year-on-year increase of 17.3%. Compared with the same period in history, this growth rate is still at a relatively high level. The steady momentum of foreign investment in China remains unchanged.

On the basis of preliminary work, the Ministry of Commerce recently issued a special document for guidance on serving key foreign-invested projects and actively attracting foreign investment, requiring all localities to provide whole-process services for key foreign-invested projects, further optimize the business environment and promote the development of foreign-invested enterprises. Relevant data show that despite some short-term difficulties, many multinational companies are still optimistic about the long-term prospects of investing in China and are ready to continue to increase their investment. Recent surveys by foreign chambers of commerce also show that most multinational companies still regard China as their primary market, and more investors will enter the Chinese market in the medium and long term.

We will continuously expand high-standard opening-up, actively respond to the demands of foreign-invested enterprises to facilitate their business in China, and continue to do our best to keep foreign investment stable. The opening of China's big market will certainly provide more opportunities for enterprises from all over the world to develop in China. Thank you.

Reuters: U.S. President Biden said recently that he was considering making a decision on relaxing additional U.S. tariffs on China. How will China respond once the decision is made, and will China make tariff adjustments accordingly?

Shu Jueting: We have taken note of President Biden's statement. China has always believed that removing all additional tariffs on Chinese goods will not only bring benefits to China, but also to the United States and the world beyond. Under the current high inflation, the earlier all additional tariffs on Chinese goods are removed, the earlier consumers and enterprises get to benefit from it. China and the United States should move in the same direction, make joint efforts to create the atmosphere and conditions for economic and trade cooperation, and keep global industrial and supply chains stable, for the good of the people in both countries and around the world. Thank you.

Shu Jueting: Any other 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.)