He Yadong: Friends from the press, good afternoon, welcome to the regular press conference of the Ministry of Commerce. With no information to share upfront, I’d like to take your questions.

The floor is open.

Shenzhen Satellite TV: Recently, some western countries have frequently accused China of overcapacity, claiming that China’s new energy capacity disrupts the international market. What is your take on the so-called ‘overcapacity’?

He Yadong: The so-called ‘overcapacity’ is irrational and nonsense. It doesn’t make sense and is totally unfounded. Capacity needs to be viewed in an objective, comprehensive and long-term perspective with respect for the objective law and facts.

According to market economy principles, supply and demand are the two basic aspects of the internal relationship of the market economy. In the context of the reality of economic globalization, the supply-demand issue needs to be viewed in a global perspective, rather than country by country. Today’s world economy has long been an indivisible whole with interwoven interests with globalized production and consumption that require supply-demand matching and modulation with a global horizon. One country’s capacity in excess of its demand doesn’t justify the ‘overcapacity’ label.

From the practice of international trade, The emergence and evolution of international trade is a result of the international division of labor and cooperation among countries based on their comparative advantages, which enhances global economic efficiency and wellbeing. The US, EU, Japan and other developed countries have all along exported large quantities of products to the rest of the world. About 80% of US-produced chips are for export. Around 80% and 50% of the cars produced in Germany and Japan are exported. Boeing and Airbus aircraft are also exported in great numbers. However, China’s EV exports of 1.2 million only account for 12.7% of its output. Is it fair to say that US, EU and Japanese exports are reasonable whereas Chinese new energy exports are overcapacity?

From the trend of industrial development, green and low carbon development is the prevailing trend. Global green transition will continue to generate great demand for new energy products. According to the research of International Energy Agency, to meet the carbon neutrality goal, the global sales of NEVs need to reach about 45 million in 2030, more than three times that of 2023 and far exceeding current global supplies. Meanwhile, accelerating new energy technology and product upgrade and iteration will continuously create new demand. Overall, global new energy industry is still at a start-up and growth stage. Far from excessive, the capacity is insufficient. Thank you.

CRI: China’s import and export grew by 8% year-on-year in April, significantly higher than that of March. What does MOFCOM make of this data? What is your forecast for foreign trade in the future?

He Yadong: Overall speaking, China’s foreign trade performance in April meets expectations. There are three main features.

First, the volume of imports and exports in April reached a record high in the same period, amounting to RMB3.64 trillion, an increase of RMB80 billion from March. Total import and export jumped 8%, with export and import up by 5.1% and 12.2% respectively.

Second, trade with both traditional and emerging markets picked up. In April, driven by factors such as inventory digestion and demand recovery, China’s trade with traditional markets reversed from decline to growth. Trade with the EU and the US went up by 3.3% and 6.2% respectively. At the same time, trade with emerging markets continued to maintain a relatively high growth rate. China’s trade with ASEAN members and Belt and Road partner countries increased by 14.4% and 9% respectively, surpassing the overall average.

Third, machinery and electrical products were the primary contributors to the overall trade growth. Their imports and exports increased by 10.4%, driving a 5.1 percentage point increase in overall trade. The export recovery for electronic information products led to a 20.4% rise in upstream integrated circuit imports.

Global trade as a whole has maintained a slow recovery momentum seen since the fourth quarter of 2023, stabilizing the confidence of foreign trade companies to some extent. A recent MOFCOM survey shows that key foreign trade enterprises have witnessed a consecutive four-month improvement in new orders, with over 80% of Canton Fair exhibitors reporting stable or increased order volumes. At the same time, we must not ignore the risks and challenges. In particular, some countries are pursuing unilateralism and protectionism, which not only elevate trade costs and risk but also disrupt global industrial and supply chains.

Facing these uncertainties, China is committed to promoting high-level opening-up and actively cultivating new drivers of foreign trade. At the same time, we will address the difficulties faced by foreign trade enterprises and assist companies in reducing costs, increasing efficiency, and enhancing international competitiveness. Thank you.

CGTN: You just mentioned the development of the global new energy industry. China’s new energy products are criticized overseas for relying on subsidies for large exports. What is your comment? How do you view the rapid development of China’s new energy industry?

He Yadong: I want to emphasize that the popularity of China’s new energy products in the global market is the result of hard work by Chinese companies rather than government subsidies.

Chinese companies stand out thanks to their long-term efforts. Since more than 20 years ago, Chinese companies have been conducting R&D investment in the new energy sector, and formed their own unique advantages through fierce market competition, including innovation, industrial and supply chains, and market. China’s new energy market is fully competitive, which results in the survival of the fittest and the continuous emergence of high-quality enterprises and products.

China’s industrial subsidy policies are reasonable and legitimate. Such policies originated from the United States and Europe and are widely adopted by countries all over the world. China’s industrial subsidy policies are mainly introductory and strictly abide by WTO rules, and always adhere to the principles of fairness, transparency and non-discrimination, so that all enterprises operating in China can enjoy the same benefits. There are no prohibitive subsidies as stipulated by the WTO, and relevant subsidy policies have been notified to the WTO in a timely and comprehensive manner. By contrast, the United States and Europe have significantly increased their subsidies in recent years, and introduced a large number of exclusive and discriminatory practices, which create obstacles for Chinese products to enter their market. This is a typical protectionist practice and violates the basic principles of the WTO.

China’s new energy industry is a contribution , not a threat, to the world. China’s high-quality new energy products have enriched global supply, promoted the green and low-carbon process, and helped achieve the goals of the Paris Agreement. It is estimated that each new energy vehicle cuts carbon emissions by about 1.66 tons per year. China exported 1.2 million new energy vehicles in 2023, which can reduce carbon emissions by about 2 million tons annually. The development of China’s new energy industry has promoted the wide application and industrialization of green, digital, artificial intelligence and other technologies, and constantly spawned new technologies, adding new momentum to global economic development. China’s cost-effective, quality and powerful new energy products are in great demand among consumers. China has gained an obvious competitive edge in producing more affordable new energy products for consumers, which also help ease global inflationary pressures. The price of China’s electric vehicles exported to Europe is lower than that of similar models in Europe, but still twice or three times as high as their market price in China. The profit is considerable, and there is no dumping. In general, China’s new energy industry has advanced the global green transformation, promoted global technological and industrial progress, and improved the well-being of consumers around the world. Thank you.

SETV: We note that, recently, the General Office of the Ministry of Commerce and the General Office of the Ministry of Finance jointly issued the Notice on Improving the Recycling System of Renewable Resources to Support the Trade-in of Home Appliances and Other Durable Consumer Goods. Can you brief us on that?

He Yadong: Strengthening a recycling system for used home appliances and other renewable resources is an important part of promoting large-scale equipment renewals and trade-ins of consumer goods. The Notice focuses on removing obstacles to recycling used home appliances and furniture. By focusing on counties and townships, the Notice transforms and upgrades the recycling network of home appliances and furniture, and makes up the shortcomings in recycling facilities and services for renewable resources in counties.

First, improving transfer facilities. Recycling, transfer, collecting and distributing sites for used home appliances and furniture in counties will be renovated and developed to effectively enhance the capacity of counties to collect and transfer renewable resources. Second, expanding service functions. Township business centers and other commercial outlets will be supported in providing consumer services, such as recycling used home appliances, and distribution and maintenance of second-hand home appliances. Third, expanding the recycling network. Businesses that recycle old home appliances will be supported in equipping vehicles for recycling renewable resources, and flexible recycling models such as using vehicles as storage will be encouraged to expand coverage.

In the next step, the Ministry of Commerce, together with the Ministry of Finance, will guide the localities in implementing the Notice, further strengthen the management of funds and projects, promote the development of systems serving renewable resources to be recycled, including a system for used home appliances and furniture, and keep the consumption cycle of home appliances unimpeded. Thank you.

The Cover: Some believe that the so-called "overcapacity" proposed by the United States and Europe actually reflects the anxiety of relevant countries. What is your comment on this?

He Yadong: The so-called "overcapacity" does not reflect excess capacity, but excessive anxiety. In essence, the countries concerned are worried about their competitiveness and market share, so that they would discredit and suppress China under this pretext, which is another new trick of "double standards" and trade protectionism. This will not stop China's progress, but will trip over themselves. It will also hold back global economic recovery and green transformation.

The narrative about "overcapacity" would only cause excess. Under the pretext of "overcapacity", certain countries impose restrictions on China's exports and investment cooperation, which is in fact pure trade protectionism, and intervention and division of the global market, which will certainly disrupt new energy production and supply chains, resulting in duplicate construction and overcapacity. Restrictions by bashing and pinning undesirable labels will only hinder cooperation and will not achieve the desired outcomes in the end.

The green "double standards" would only disrupt cooperation on climate change. Europe and the United States hold the banner of climate change responses with one hand and wave the “big stick” of green protectionism with the other hand. While demanding that China take greater responsibility for climate change responses, they would hinder the free flow of green products from China. This is typical "double standard". China's new energy sector is committed to providing high-quality products for global response to climate change, and has made positive contribution to green transformation of countries in the world. One can't pursue protectionism when talking about climate cooperation, and there can't be real climate cooperation when one is also engaged in protectionism.

China firmly supports liberalization and facilitation of trade and investment and resolutely opposes trade protectionism. The relevant countries should immediately stop the misguided actions of containing and restricting China's new energy and other sectors in the name of "overcapacity". China will take effective measures to safeguard its legitimate rights and interests. At the same time, China will always stay committed to openness and cooperation and promote common development. Thank you.

Reuters: During the previous China-US Trade Friction, China usually announced countermeasures a few hours after the U.S. announcement. However, this time, China only stated on Tuesday night that China would safeguard its rights and interests, and no specific measures have been announced yet. Is there any reason or consideration behind this change? Is China worried about being regarded as weak by the rest of the world? In addition, what is China's response to or have China prepared for the possibility that the EU and other major economies will jointly levy tariffs on its exports?

He Yadong: On your first question, China’s position on unilateral tariff measures imposed by the United States has been consistent. China resolutely opposes and has made solemn representations on the recent erroneous act of the U.S. to arbitrarily raise Section 301 tariffs on China. China will take necessary countermeasures to resolutely safeguard its rights and interests.

On your second question, China stands firm against all forms of trade protectionism and will take all necessary countermeasures to safeguard its rights and interests. Thank you.

Bloomberg: Will China take countermeasures against the newly announced tariffs on imports from China by the U.S.? Could you elaborate on the possible measures?

He Yadong: I have already responded to your questions just now. Thank you.

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