Shu Jueting: Members of the press, happy new year. Welcome to today’s press conference. I have no announcements to make today and would like to take your questions. The floor is open.

Yicai: MOFCOM recently launched an anti-dumping investigation into imported brandy from the EU. What’s MOFCOM’s consideration for this investigation?

Shu Jueting: On November 30, 2023, China’s domestic industry filed an anti-dumping application with MOFCOM, citing that the fast-growing number of related brandy products imported from the EU has resulted in falling prices and difficulties in the operation of the domestic industry. Upon receiving the application, MOFCOM has reviewed the materials and relevant evidence submitted by the applicants according to law. We believe that the application met the conditions for filing an anti-dumping investigation, and decide to launch the investigation.

We will conduct the investigation according to relevant Chinese laws and regulations, as well as the WTO rules, in a open and transparent way and safeguard the rights of all stakeholders in the process. Thank you.

CRI: Maldivian President Mohamed Muizzu is paying a state visit to China this week. Could you introduce China-Maldives trade and economic cooperation and share with us China’s expectations?

Shu Jueting: On January 10, President Xi Jinping held talks with Maldivian President Mohamed Muizzu during the latter’s state visit to China. The two heads of state decided to upgrade the China-Maldives relations to a comprehensive strategic cooperative partnership, and witnessed the signing of the action plan on building a comprehensive strategic cooperative partnership between China and the Maldives and a number of bilateral cooperation documents on the Belt and Road Initiative, disaster management, economy and technology, blue economy, digital economy, green development, infrastructure and people’s livelihood.

China and the Maldives are traditionally friendly neighbors. In recent years, China-Maldives commercial relations have deepened. Bilateral cooperation in various fields including the Belt and Road Initiative has delivered fruitful results. From January to November 2023, the bilateral trade was close to USD 700 million, up by 75.2% year-on-year. China-Maldives cooperation on people’s livelihood and infrastructure has moved forward on the basis of mutual respect and equal treatment. More and more Chinese companies are investing in the Maldives. China has always provided assistance to the Maldives and supporting its economic and social development within its best capacity. The China-Maldives Friendship Bridge, the Velana International Airport expansion project, and housing projects have greatly improved the lives of local people. The Maldives has always been a popular tourist destination for Chinese people.

Going forward, MOFCOM is willing to work with its Maldivian counterpart to implement the important consensus reached by the leaders of the two countries, promote investment cooperation in green development, digital economy and blue economy, upgrade the level of China-Maldives economic and trade cooperation, and promote the continuous development of China-Maldives comprehensive strategic cooperative partnership. Thank you.

National Business Daily: MOFCOM, together with other 10 ministries, has jointly issued the Opinions on Enhancing the Development Level of Processing Trade. We have noted that the share of processing trade in China’s foreign trade dropped from nearly 50% to less than 18% now. What does MOFCOM make of it? Can you introduce the background of the Opinions, and what will MOFCOM do to better promote the development of processing trade to achieve quality growth?

Shu Jueting: Processing trade is an important part of China’s open economy and foreign trade. Since the beginning of reform and opening up, processing trade has made leapfrog development, and contributed to creating jobs, boosting the development of foreign trade, and upgrading the industrial structure. In recent years, the domestic and international environment has undergone profound changes, and the scale and proportion of traditional processing trade in foreign trade have declined. That said, processing trade is still an important driving force for consolidating and upgrading China’s position in the global industrial chain and supply chain and increasing foreign trade in the central, western and northeastern regions. It has played an important role in stabilizing foreign trade and foreign investment and maintaining the stability of the industrial and supply chains.

The CPC Central Committee and the State Council attach great importance to the development of processing trade and commit to upgrade the level of processing trade. With the approval of the State Council, 10 ministries, including MOFCOM, have jointly issued the Opinions on Enhancing the Development Level of Processing Trade, proposing 12 policy measures in six aspects. This is another important guidance document on the development of processing trade since the Several Opinions of the State Council on Promoting the Innovative Development of Processing Trade in 2016. We have published the details and relevant interpretations on the website of MOFCOM for your reference.

Going forward, MOFCOM will work with relevant ministries and localities to implement the Opinions. First, we will improve supporting departmental measures and establish inter-ministerial liaison and cooperation mechanisms. We will guide local governments to introduce targeted and detailed measures. Second, we will promote the gradient transfer of processing trade. At present, processing trade in the central, western and northeastern regions has accounted for nearly 30% of the country, an increase of 5.8 percentage points over 2017. We will continue to cultivate high-quality processing trade gradient transfer carriers, and build a sound industrial cooperation mechanism. Third, we will promote the development of new business forms such as bonded maintenance. We will work with relevant ministries to accelerate the implementation of qualified bonded maintenance projects, promote enterprises to extend the industrial service chain, create good jobs, and enhance comprehensive competitiveness. Fourth, we will give full play to the main processing traders. From January to November 2023, the import and export volume of the top ten processing trade provinces and cities accounted for nearly 85% of the country. We will encourage and support local governments to keep stepping up services and support for key processing trade enterprises according to local conditions and create a good environment for the sustainable and healthy development of processing trade. Thank you.

China News Service: January 1st this year marked the fifth year of the implementation of the E-commerce Law of the People's Republic of China. What progress has been made in the development of e-commerce in China in the past five years? What work has the Ministry of Commerce done to promote its development?

Shu Jueting: Since the implementation of the E-commerce Law in 2019, China’s e-commerce business environment has continued to improve. E-commerce has become an important part of the digital economy, with larger scale, broader coverage, more dynamic entrepreneurship and innovation than other industries. It has played a crucial role in the formulation of the new development pattern.

In the past five years, the Ministry of Commerce, together with relevant departments and localities, has worked to unveil policies incentives, created new ways of public service provision, strengthened the role of exemplary models, and promoted the integrated and innovative development of e-commerce. First, the economies of scale of e-commerce have significantly improved. E-commerce transaction values increased from 31.63 trillion yuan in 2018 to 43.83 trillion yuan in 2022. Online retail sales of physical goods accounted for more than a quarter of total retail sales. China has been the world’s largest online retail market for 11 consecutive years. Over the past five years, the employment in e-commerce has increased from 47 million to more than 70 million. E-commerce has become a new engine for digital transformation. A number of B2B platforms, such as chemicals and construction materials, have emerged, with transactions exceeding 100 billion yuan. National e-commerce demonstration bases have helped to foster more than 30 digital industrial belts, including the clothing and furniture industries. Second, international cooperation on e-commerce has been intensified. The number of Silk Road E-commerce partner countries has expanded to 30, and the e-commerce cloud lectures have benefited more than 80 countries. Shanghai set up a Silk Road E-commerce pilot zone to open e-commerce wider to world and forge new competitiveness in international cooperation on the digital economy. Of the 22 free trade agreements China has signed, 13 contain e-commerce chapters. China’s practices in developing e-commerce, including the enactment of the E-commerce Law and online courts, have be registered into the APEC public policy database, contributing China’s wisdom to global digital governance. Third, the e-commerce regulatory system is improving. Building on the E-commerce Law and past legislation and practical experiences, the Ministry of Commerce and other departments have made concerted efforts in planning, policy-making and standard-setting, and issued the 14th Five-Year Plan for E-commerce Development, industry standards such as the Standards for Integrity Evaluation of E-commerce Firms and the Standards for the Management and Service of Live streaming E-commerce Platforms. These efforts have helped to guide the healthy development of industry. Thank you

Reuters: Is China’s decision to investigate European brandies a retaliation to the European Commission’s countervailing investigation into Chinese new energy vehicles? According to Chinese customs data, more than 99 percent of European cognac imports come from France. Why did you make France the target?

Shu Jueting: First of all, I want to stress that this case was initiated at the request of China’s domestic industry. According to WTO rules and applicable Chinese laws and regulations, Chinese domestic industries may file an application for trade remedy investigation to maintain normal market competition order and protect their legitimate interests. In this case, the subject of investigation, as requested by the domestic industry, is brandy imported from the European Union. After receiving the application, the Ministry of Commerce reviewed the materials and relevant evidence submitted by the applicant in accordance with the law, and determined that the application met the requirements for starting an anti-dumping investigation. That’s why we decided to initiate the investigation.

According to the laws and regulations of China, the investigator will receive comments and opinions from all interested parties within the scope of the investigation and other relevant issues in accordance with the legal procedures, and will protect the interests of all stakeholders in accordance with the law. Thank you.

CNBC: I have two questions. First, ASML said earlier this month that it is unable to supply some lithography systems to Chinese companies because the Dutch government canceled some export licenses. What is the response of the Ministry of Commerce? Do you know whether the industries have been affected? The second question is that the China Passenger Car Association predicted that China will become the world’s largest automobile exporter by 2023. The Association’s data in December showed that most of the exported vehicles were fuel vehicles. How does the Ministry of Commerce view this trend? Does the MOFCOM plan to take any measures?

Shu Jueting: To answer your first question, we are highly concerned about the direct interference of the US with Dutch companies’ export of lithography machines to China. China is firmly opposed to the US attempt to use export control as a tool and weapon to disrupt the normal trade between companies from other countries. We urge the Netherlands to respect the spirit of contract, support trade between businesses as long as they are compliant with the laws and regulations, and maintain a free, open, just and non-discriminatory international trade environment. China will closely follow the development of the situation and its impact, and take necessary measures to protect the legitimate interests of Chinese companies.

Regarding your second question, in recent years, China’s automobile industry has developed rapidly, with improving performance and quality. China’s automobiles are gradually recognized and accepted by consumers around the world, with the export rising every year. In terms of structure, fuel vehicles remain the majority of auto exports, accounting for more than 70% of the total exports. The export of new energy vehicles, on the other hand, has grown rapidly, becoming a new driving force for auto exports. With the recovery of the global auto market and accelerated green and low-carbon transformation, there is a broad space for the development of auto makers in countries around the world. The Ministry of Commerce will continue to follow the development of the auto trade, foster a fair, stable, inclusive and convenient trade environment, support auto firms in improving their international marketing and service system, provide more quality products and services for consumers from around the world, and promote the sustainable and healthy development of the automobile trade. Thank you.

Phoenix TV: The Ministry of Commerce announced this week that relevant departments are considering further suspension of tariff reductions under ECFA’s early harvests, including for agricultural and fishery products, machinery, auto parts, and textiles. Under what conditions will the Mainland consider maintaining these tariff concessions?

Shu Jueting: The trade restrictions of the Taiwan region on the Mainland constitute trade barriers, and violate the provisions of the Economic Cooperation Framework Agreement (ECFA), seriously damage the interests of relevant industries and enterprises on the Mainland, and the interests of consumers in Taiwan. We urge the authorities in Taiwan to take effective measures to lift the trade restrictions. As always, we respect, care for and aim to deliver for our compatriots in Taiwan. On the basis of the One-China principle, the Taiwan region and the Mainland may hold consultations on various issues in the economic and trade context. Thank you.

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