Gao Feng: Dear friends from the press, good afternoon. Welcome to the regular press conference of the Ministry of Commerce. Today, I have two pieces of information to release to you at first.

Gao Feng: 1. The economic and trade cooperation situation between China and the countries along the “Belt and Road” routes in 2018

2018 was the fifth anniversary of the Belt and Road Initiative, all the related countries discussed together, constructed jointly and shared with each other, the action plans of “Belt and Road” cooperation was promoted steadily, the fields of economic and trade cooperation were broadened constantly, the patterns of trade and investment were innovated continuously, and the smooth trade of “Belt and Road” gained positive progress.

1. The commercial intercourse was constantly deepened. In 2018, the import and export of trade in goods between China and the countries along “Belt and Road” reached US$ 1.3 trillion, up 16.3% year on year, 3.7 percentage points higher than the growth rate of China’s foreign trade in the same period, and taking up 27.4% of the total foreign trade. Among these, China’s export to the countries along the routes was US$ 704.73 billion, up 10.9% year on year; the import from the countries alongside was US$ 563.07 billion, up 23.9% year on year.

2. The potential of bilateral investment was further released. The non-financial direct investment of Chinese enterprises to the countries along the routes reached US$ 15.64 billion, up 8.9% year on year, and accounting for 13% of the total volume in the same period. The complete turnover of foreign contractual projects in the countries along the routes was US$ 89.33 billion, up 4.4% year on year and accounting for 52% of the total volume in the same period. The routes countries’ investment in China was US$ 6.08 billion, up 11.9% year on year.

3. The driving effects of major projects were more prominent. China-Maldives Friendship Bridge in Maldives was open for traffic, Mombasa-Nairobi Standard Gauge Railway (SGR) went into operation, the Gwadar port possessed the operational capability, the main part of the second phase projects of Hambantota port was completed and the projects like China-Laos and China-Thailand railway were promoted orderly.

4. The formation of the high level FTA network accelerated. China-Georgia FTA entered into effect officially. FTA negotiation with Mauritius was completed. The FTA upgrading protocol with Singapore was signed, and negotiation of Regional Comprehensive Economic Partnership (RCEP) gained positive progress. Economic and Trade Cooperation agreement with Eurasian Economic Union was signed.

[Gao Feng]: Second, about China's consumption market operation in 2018

According to the National Bureau of Statistics, the total retail sales of consumer goods throughout the country reached 38.1 trillion yuan in 2018, up 9% year on year. The contribution rate of the final consumption expenditure to economic growth reached 76.2%, 18.6 percentage points higher than that of the same period last year. The sales of the key retail enterprises monitored by MOFCOM increased by 4.3% year on year.

In 2018, China's consumption market maintained stable operation in general. The consumption scale expanded steadily, the consumption modes continued to be innovated, the momentum of consumption upgrading was maintained, and the contribution of consumption was further enhanced. The main features are as follows:

1.The proportion of online retail continued to expand, and physical retail maintained a recovering trend. The online retail sales of physical goods throughout the country increased by 25.4% year on year, accounting for 18.4% of the total retail sales of consumer goods, up 3.5 percentage points over the same period of the previous year. According to the State Post Bureau, the express delivery volume throughout the country was 50.71 billion pieces, up 26.6% year on year. On the other hand, the physical retail industry is actively using new technologies, and the online and offline are deeply integrated, which has shown a steady development trend. Among the key retail enterprises monitored by MOFCOM, the sales of convenience stores and supermarkets increased by 7.9% and 4.9% respectively year on year, 0.5 and 1 percentage points higher than the same period of the previous year respectively.

2.The commodity consumption was upgraded, and the sales of new energy vehicles were strong. Upgraded products such as fashion, quality, energy saving and intelligence are welcomed by the market. The growth rates of the retail sales of cosmetics and household appliances above the designated size were 3.9 and 3.2 percentage points higher than those of the commodity above the designated size respectively. Among the key retail enterprises monitored by MOFCOM, the growth rates of sales of communication equipment and cultural and entertainment products were 2.3 and 2.1 percentage points faster than those in the same period of the previous year respectively. The sales of new energy vehicles in the year reached 1.256 million, up 61.7% year on year.

3.The growth rate of service consumption was faster, and the consumption in culture and entertainment improved its quality and expanded its scale. The quality of service consumption has continuously improved, and the consumption in tourism, culture, education, and old-age pension has developed rapidly. Take Beijing as an example. Its service consumption increased by 11.8% year on year, and the contribution rate to the total market consumption growth was 82.6%. The national catering revenue reached 4271.6 billion yuan, a year-on-year increase of 9.5%, 0.6 percentage points higher than that of commodity retail. The national box office totaled 60.98 billion yuan, up 9.1% year on year. Tourism consumption continued to be strong. It is estimated that the number of domestic tourists exceeded 5.5 billion in the whole year, and the income exceeded 5 trillion yuan, up 10.8% and 12.3% year on year respectively.

4.Consumer price rose mildly. In 2018, the national consumer price rose by 2.1% year on year, 0.6 percentage points higher than that in the same period of the previous year. The prices of edible agricultural products in 36 large and medium-sized cities monitored by the Ministry of Commerce increased by 2% year on year. Among these, the prices of mutton, egg, vegetable and beef increased by 14.5%, 8.5%, 6.2% and 5.6% year on year respectively, and the price of pork decreased by 9.9% year on year.

The above is the information that I want to release. Next, I am willing to answer the questions from the media. Let’s begin.

SSTV: The Boao Forum for Asia 2019 will be held in Boao, Hainan from March 26 to 29 this year. There will be a separate topic on the Belt and Road initiative during the annual meeting. In addition, the second Belt and Road Forum for International Cooperation will be held in Beijing in April this year. May I ask the spokesperson what the highlights of MOFCOM’s effort in promoting the BRI this year will be?

Gao Feng: I have just talked to you about the China’s trade and economic cooperation with the BRI countries in 2018. In 2019, we will work together with relevant countries in jointly promoting the BRI.

First, China will further open up the market and let the BRI countries share China’s opportunities. At the same time, we will open up our respective markets to each other along the BRI, and jointly build an open world economy and achieve common development. Second, we will further promote trade and investment liberalization and facilitation. By signing high-standard free trade agreements and developing cross-border e-commerce with interested countries and regions, we will jointly promote the convergence of high-standard trade and investment rules of relevant countries, and promote new business formats and new business models with a view to advancing trade and investment liberalization and facilitation along the Belt and Road. The third is to build more trade cooperation platforms. We will give full play to the important role of the China International Import Expo as a platform in building the Belt and Road. The first CIIE attracted more than 1,000 business exhibitors from 58 BRI countries, accounting for nearly one-third of the total number of exhibitors. More companies from the BRI countries will be invited to the second CIIE this year. At the same time, we will also work together with relevant countries to build other platforms for BRI trade and economic exchanges with distinct themes, different emphasis and prominent features.

In short, we will work together with the BRI countries to continuously deepen trade and economic cooperation and promote high-quality BRI development. Thank you.

CGTN: It was reported recently that due to the slow progress of China-US economic and trade consultations, the US side canceled the talks between the two vice ministers, which had been previously scheduled for this week in Washington. Is this information accurate? What is China’s comment on this?

Gao Feng: Reports on the US cancellation of economic and trade consultations with China are not true. In fact, the economic and trade teams of both sides have maintained close communication and contact. At the invitation of US Treasury Secretary Mnuchin and US Trade Representative Lighthizer, Vice Premier Liu He will visit the United States from January 30 to 31 to hold high-level consultations on China-US economic and trade issues and jointly promote the implementation of the important consensus of the two Presidents. At present, the two sides are stepping up close communication on arranging these consultations. Thank you.

Caixin: On the new round of vice-ministerial China-US trade consultation, do you have any relevant issues to disclose?

Gao Feng: In early January, the two sides exchanged information fully during the Beijing consultations. On this basis, in the forthcoming high-level consultations on China-US economic and trade issues, the two sides will continue to conduct in-depth consultations on various economic and trade issues of mutual concern in accordance with the spirit of the important consensus of the two Heads of State. Thank you.

CBN: The head of the Department of Outward Investment and Economic Cooperation of the Ministry of Commerce said recently that the cooperation between China and other countries in third markets was advancing in 2018. China has cooperated with enterprises from the United Kingdom, Germany, France, Singapore and other countries in Asia and Africa. Recently, it seems that China and France and China and Germany are accelerating their cooperation in third-party markets. Can you tell us more about the relevant cooperation that has already been materialized, and the specific projects that will be carried out in 2019 with the above countries? In addition, how is the implementation of the 52 Sino-Japanese third-market cooperation projects announced in October 26 last year? With which of the above-mentioned country has China’s cooperation project advanced the fastest?

Gao Feng: Third-party market cooperation is a pragmatic move by China to work with relevant countries to bring into play the advantages of their respective businesses and achieve mutual benefit and win-win results. It is also a joint effort to promote economic globalization and build an open world economy. At present, the third-party market cooperation between China and relevant countries is progressing steadily and orderly.

Last year, we signed relevant documents with the Netherlands, Belgium, Spain, Japan and other countries to strengthen cooperation in third-party markets. After the first Sino-Japanese triangular cooperation forum, the two sides actively implemented relevant results, supported the enterprises of the two countries to strengthen communication with third parties, jointly carried out pragmatic cooperation, and made certain progress in the fields of energy, petrochemicals and electric vehicles.

In 2019, we will continue to strengthen policy coordination at the government level in accordance with the principles of “government guidance, business ownership, market operation, international practices”, build a platform for cooperation, promote deepened and pragmatic cooperation among relevant businesses, jointly promote with relevant countries the materialization of projects in third-party markets, support the economic development of the host country and benefit the local people. Thank you.

China News Service: We noted that the European Union recently published the results of its AD and CVD investigations on electric bicycles originating in China. According to the results, antidumping and countervailing duties of 18.8%-79.3% will be imposed on imported e-bikes originating in China. What’s China’s comment on it?

Gao Feng: We noted that, regardless of the opposition from the business community, the European Commission insisted on imposing AD and CVD measures on e-bikes originating in China. We have great concerns over the WTO-consistency of the investigations and final determinations. The EU side still refers to an “analogue country” in calculating dumping margin in this case, blatantly violating the international obligations set out in Article 15 of the Protocol on China’s WTO Accession. We resolutely oppose the EU’s approach in this case.

China’s e-bike sector is a fully market-oriented sector with perfect competition. Chinese and European e-bike sectors have broad cooperation on e-bike technical solutions and supporting supply chains. The EU’s determinations neither faithfully reflect the market condition in China’s e-bike sector, nor do they comply with relevant WTO rules. China will take necessary measures to resolutely safeguard Chinese businesses’ legitimate rights and interests. Thank you.

BTV: As the Spring Festival approaches, here comes the peak period for purchasing fresh and live agricultural produce like vegetables. What measures will MOFCOM take to guarantee market supply before the festival? What are the highlights of pre-festival consumption this year?

Gao Feng: In order to better satisfy people’s demand and better guarantee the quality and quantity of food supply, we have strengthened monitoring of the agro-produce market and channeled efforts in three aspects:

First, an adequate supply and stable prices. We have strengthened coordination among producers and dealers and expanded supply channels. When necessary, we will put reserve goods onto the market. So far, we have set up nationwide reserve mechanisms for 29 daily necessities, including grains, oil, meat and sugar, among others. Seventeen northern provinces, autonomous regions and municipalities, including Beijing, Inner Mongolia and Xinjiang, have set up vegetable reserves for winter and spring which can guarantee vegetable consumption for seven days. Not long ago, we worked with relevant departments to put 9,600 tons of the central government’s pork reserves onto the market, further increasing market supply. Local governments have also put their meat and vegetable reserves onto the market according to local market conditions.

Second, improved safety and quality. We have established meat and vegetable traceability systems in 58 big and medium-sized cities. According to statistics, covering 86,000 businesses and 524,000 vendors, the systems can trace pork, beef, lamb and mutton, chicken, over 500 kinds of vegetables as well as some fruits and aquatic products. The traceability systems provide a chain to trace foodstuffs from farmland to table, help guarantee supply security and create a reliable consumption environment for the people.

Third, rapid emergency response. We have already initiated a daily monitoring report program on the pork market. During the Spring Festival, we will initiate a daily monitoring report program on the market of daily necessities. Once daily necessities become out of stock or large price fluctuations occur, we will respond immediately to organize emergency goods delivery to ensure stable market functioning during the festival.

According to our market monitoring, festival necessities markets around the country are orderly and stable in general. First, there is adequate supply and a wide range of goods on the market. Second, prices are stable. According to our monitoring, last week (January 14th to 20th) prices of agricultural foodstuff went up slightly by 1% compared with the week before. Third, sales are up. Last week, sales in key retail sectors monitored by MOFCOM grew by 20% compared with the week before. Sales of tobacco and alcohol, apparel and foodstuffs grew by 34.2%, 22.6% and 19.4% respectively. Thank you.

National Business Daily: In 2018, total retail sales of consumer goods in China exceeded 38 trillion yuan, hitting a record high while growing at a lower rate and registering single-digit growth for the first time since 2004. What are the reasons behind? Besides, what’s MOFCOM’s view on China’s consumption trend in 2019?

Gao Feng: In 2018, China’s consumption market was stable on the whole, and consumption has been the premier driving force for economic growth for five consecutive years. At the same time, consumption upgrading is well underway with the national Engel coefficient at 28.4%, down by 0.9 percentage points year-on-year. In per capita consumption expenditure, services consumption accounts for 44.2%, up by 1.6 percentage points year-on-year.

Meanwhile, China’s economic growth slowed down slightly in 2018 due to multiple domestic and international factors. We can understand the slowdown from the following perspectives:

First, after 20 years of high-speed growth, China’s consumption market has entered a new stage where the scale expands steadily, demand becomes diversified and the structure upgrades continuously. This shift is in line with the objective laws of economic and social development and in keeping with the phased development of the consumption market.

Second, a growth rate of 9% still ranks among the top among major economies in the world. Besides, it is achieved on a high base figure of over 30 trillion. With the current growth rate, one year’s increment is larger than the that of 20% growth ten years ago.

Third, according to the current statistical methodology, total retail sales of consumer goods mainly reflect consumption of goods. Service consumption has increased quite fast recently in China. For example, tourism revenue and the number of tourists nationwide are both up by 10% plus. For the first time the film box office revenue exceeded 60 billion yuan, up by nearly 10%. They are not included in the total retail sales of consumer goods.

Despite some pressure on consumption growth, many favorable conditions for consumption remain in place in 2019. As urbanization moves forward, efforts to stimulate consumption gradually pay off, emerging consumers expand rapidly, and new growth drivers crop up, we believe the fundamentals of stable and sound consumption market will not change, the upward trend of consumption upgrade will not change, and the momentum of unleashed consumption potential will not change. Thank you.

Taikungpao: Mr. Spokesman, what measures will MOFCOM take to ensure safety of goods supplied to Hong Kong during the Spring Festival?

Gao Feng: The central government attaches great importance to the supply of agricultural produce from the mainland to Hong Kong and Macau. The stable supply of farm produce and other processed foods from the mainland has long satisfied the demands of citizens in Hong Kong and Macau. MOFCOM has already made arrangements for relevant work during this Spring Festival and will continue to ensure stable supply of quality and safe products.

We and relevant agencies will send a working group to Hong Kong and Macau before the Spring Festival who will contact SAR governments and industries and arrange the supply of farm produce in the wholesale markets and wet markets. In the meantime, we have required commercial authorities and agencies in pertinent provinces and cities to take measures to strictly prevent African swine fever virus, secure source of supply, initiate contingency plans, make timely adjustment, and strengthen communication. We have asked relevant departments to go to any lengths to implement those measures so as to guarantee stable supply of farm produce and sideline products to Hong Kong and Macau during the Spring Festival.

As far as we know, there are adequate inventory of livestock and other agricultural produce for Hong Kong and Macau, which can meet the demands of the market. In order to respond to sudden natural disasters, MOFCOM has designated Guangdong and Jiangxi as the “storage pool” that will be tapped in case of any emergency. Thank you.

CBN: In 2018, China’s trade volume surpassed 30 trillion yuan for the first time, reaching a record high. What are the new features of Chinese trade structure? What will MOFCOM do to improve the quality while maintaining stable growth of foreign trade?

Gao Feng: In 2018, China’s foreign trade structure further improved and took on the following features. First, international market is more diversified. Trade with emerging markets accounted for a larger share which represents 57.7%, meaning less dependency on traditional markets. Second, exported goods are upgraded. The share of mechanical and electronic exports rose to 58.7%. In breakdown, high technology and high value-added goods registered a remarkable growth. Exports of labor-intensive goods moved faster with upgrading. Third, import of consumer goods saw a notable growth. In the first 11 months of 2018, China imported nearly 1.1 trillion yuan of consumer goods, up by 12% year-on-year. Imports of goods with a close bearing on people’s life increased relatively fast. For example, imports of food, tobacco, wine and others grew by 19.9%, apparel, footwear and hats grew by 17.7%, and cosmetics were up by 66.9%. Fourth, private enterprises maintain a strong momentum of growth. Accounting for 48% of exporters, private companies now play a bigger role in exports.

In 2019, we will shift from quantity expansion to improving quality in terms of foreign trade. First, with respect to export, thanks to evolution of science and technology in China, there is still room for improvement for quality, content of science and technology, branding, and marketing of Chinese exports, including labor-intensive goods and mechanic and electronic products. Second, with respect to import, as domestic market potential is further unleashed, there is ample room for growth in high quality consumer goods. Third, international market can be further diversified. The Belt and Road initiative is moving ahead steadily. Emerging markets present more opportunities. Businesses are more resilient in the face of market fluctuations. Fourth, with respect to industrial chains, an increasing number of Chinese enterprises are moving up the international industrial chain. Fifth, in terms of business entities, private companies will be further stimulated and play an even bigger role in foreign trade.

Overall speaking, there is huge space and broad prospect for China’s higher-quality foreign trade development. Thank you.

Any other questions?

If not, this is the end of the press conference.

Thank you.