Gao Feng: Dear friends from the press, good afternoon. Welcome to MOFCOM’s regular press conference. First of all, I have one announcement to make.

Gao Feng: I. Domestic automobile consumption in 2020

In December 2020, China's auto market continued to recover and rebound, with consumer demand expanding steadily. Throughout 2020, the decline margin in auto production and sales narrowed to under 2%, production and sales of new energy vehicles (NEVs) reached record highs, and the number of junked motor vehicles that were recycled registered positive growth. More specific information is as follows.

Auto production and sales continued to pick up. In December, 2.84 million new vehicles were produced and 2.831 million were sold, up 5.7% and 6.4% year on year respectively; among them, 235,000 NEVs were produced and 248,000 were sold, both hitting monthly highs, up 55.7% and 49.5% year on year respectively. Throughout 2020, 25.225 million vehicles were produced and 25.311 million were sold, down 2% and 1.9% year on year respectively, with both decline margins about 15 percentage points narrower than those in the first half of 2020; among them, 1.366 million NEVs were produced and 1.367 million were sold, both hitting record highs, up 7.5% and 10.9% year on year respectively.

Second-hand vehicle transactions continued to rebound. In December, 1.708 million second-hand vehicles were traded, up 1.3% year-on-year. In 2020, 14.341 million second-hand vehicles were traded, down 3.9% year-on-year, a decline 15.7 percentage points narrower compared with that in the first half of 2020.

The number of recycled junked motor vehicles grew faster. In December, 386,000 junked motor vehicles were recycled across China, up 61.4% year on year, a record-high for 2020. A total of 2.398 million junked motor vehicles were recycled in 2020, up 4.5% year on year.

Gao Feng: That's all for the announcement today. Now I’m ready to take your questions. The floor is open.

China News Service: Recently, State Councilor and Foreign Minister Wang Yi paid successful visits to five African countries, continuing Chinese foreign ministers’ tradition of making Africa their first overseas destination in a year for 31 consecutive years. What are the new highlights of China-Africa trade and economic cooperation in the past year, especially in the context of the COVID-19 pandemic?

Gao Feng: In 2020, China-Africa trade and economic cooperation faced a lot of difficulties due to the impact of the COVID-19 pandemic and other factors. In the face of severe challenges, China always stood side by side with African countries to ensure that cooperation in various fields continue unabated with stronger confidence.

First, China and Africa kept enhancing cooperation in the fight against the pandemic. President Xi Jinping and African leaders jointly convened the Extraordinary China-Africa Summit on Solidarity Against COVID-19, fully demonstrating that China and Africa are friends that have their fortunes closely inter-connected and back each other up. When the pandemic just broke out, some African countries provided China with a large amount of epidemic-response supplies, including face masks, protective goggles and medical gloves, lending China strong support in the fight against COVID-19. Since COVID-19 emerged in Africa, China has provided multiple batches of emergency epidemic-response supplies to African countries, sent medical experts to 16 African countries. Chinese enterprises and 46 Chinese medical teams in Africa have joined the local communities in fighting against the virus. The construction of the headquarters of the African CDC has started ahead of schedule. China has also pledged that once the development and deployment of COVID-19 vaccine is completed in China, African countries and other developing countries will be among the first to benefit.

Secondly, bilateral trade has gradually stabilised, demonstrating the resilience of China-Africa trade. From January to November 2020, bilateral trade between China and Africa amounted to US$167.8 billion, with a decline 8.5 percentage points narrower than that in the first half of the year. In terms of bilateral trade, South Africa, Nigeria, Angola, Egypt and the Democratic Republic of Congo (DRC) are China's top five trading partners in Africa. In terms of products, the trade volume of mineral products, machinery and equipment, and base metals (iron and steel, copper, aluminum, etc.) and base metal products ranked the top three, and the trade volume of major commodities remained basically stable. Particularly noteworthy is that the value of China's agricultural imports from Africa increased by 4.4% year on year, maintaining positive growth for four consecutive years.

Third, Chinese investment in all sectors of African economy grew slightly, which speaks to Chinese enterprises’ confidence in the African market. From January to November 2020, China’s non-all-sector direct investment flow in Africa was US$2.8 billion, up 0.04% year-on-year. Region-wise, the investment flow in east, north, and central west Africa increased by 22.7%, 15.4%, and 0.6% year-on-year. Country-wise, Chinese enterprises started new investment in 47 African countries, while investment in 17 countries increased by more than 10%. Sector-wise, Chinese enterprises’ investment more than doubled in wholesale and retail; scientific and technological services; transportation and warehousing; residential services, repair, and other services; and health and social services.

Fourth, China-Africa infrastructure cooperation continued to deepen. From January to November 2020, Chinese enterprises entered into new construction contracts worth US$55.1 billion in Africa, up 13.3% year-on-year. This number demonstrated the two sides’ strong willingness to cooperate in infrastructure. A number of major projects of bilateral concern progressed steadily, including Phase 2 of Abuja-Keffi-Lafia-Makurdi Road and the CBD project of Egypt’s New Administrative Capital.

Fifth, China and Africa continued to expand cooperation in emerging sectors. Facing the impact of the pandemic, Chinese enterprises, enabled by cloud technologies, shared experience in big data, cloud computing, mobile payment, and other digital technologies with African countries, held online trade fairs and promotion events, and invited African countries to merchandise their specialties via livestreaming. These cooperation measures contributed to tracking, preventing, and controlling the pandemic in Africa, while serving as exploration for new areas to develop China-Africa economic and trade cooperation. Thank you.

Phoenix TV: On January 13, the US government has issued a sweeping ban on the import of cotton products and tomato products from Xinjiang, on the grounds of “forced labor”. Prior to that, the UK and Canada also pointed to measures on products from China that are related to “forced labor”. What’s your comment?

Gao Feng: The US and some other individual countries, under the premise of misinformation and invented lies, took to restricting the export of products from Xinjiang and suppressing Xinjiang institutions and businesses. This constitutes gross interference in China’s internal affairs, to which China firmly opposes. China is against forced labor, which is clearly prohibited according to relevant Chinese legislation.

Cotton products and tomato products from Xinjiang are significant to related global industrial and supply chains. The restrictions devastate the security and stability of global industrial and supply chains, and stall world economic recovery. China strongly urges relevant countries to stop these wrong moves. In the meantime, we will take all necessary measures to firmly safeguard the lawful rights and interests of Chinese businesses. Thank you.

Xinhua News Agency: How have the eight major initiatives been implemented, which were announced by President Xi Jinping at the Forum on China-Africa Cooperation (FOCAC) Beijing Summit in 2018?

Gao Feng: Implementing the eight major initiatives of the FOCAC Beijing Summit has been the main theme and top priority of China-Africa practical cooperation over the past two years. After the Summit concluded, China started the implementation in no time, and worked with Africa in close coordination and collaboration. Together, we made specific program lists for each country, overcame the impact of the pandemic, and yielded positive outcomes with joint efforts. So far, more than 85% of the targets of the eight major initiatives have been achieved; 70% of the US$60 billion of supporting fund has been paid-in or planned.

In terms of industrial promotion, the 25 Chinese economic and trade cooperation zones in Africa , filed at MOFCOM, have welcomed over 580 enterprises, bringing in a total investment exceeding US$7.3 billion; in implementing the agricultural assistance projects, China has delivered emergency food assistance and locust plague response supplies; the first China-Africa Economic and Trade Expo was successfully held. These achievements have effectively facilitated Africa’s economic structural adjustment, industrialization, and agricultural modernization.

In terms of infrastructure connectivity, a number of major projects that China participated in have been completed or are being implemented, such as electrification of Luanda Province in Angola, suburban railway of 10th of Ramadan City in Egypt, and reconstruction and expansion of Abidjan Port in Cote d'Ivoire. They have effectively the improved African infrastructure and helped Africa improve its level of connectivity.

In terms of trade facilitation, we have taken active measures to help Africa boost its export capacity and improve its trade environment. The China-Mauritius Free Trade Agreement came into effect. We have actively invited African countries and companies to come to China for China International Import Expo and other exhibitions. Active measures have been taken to actively expand the import of agricultural produce from Africa, and more than 10 kinds of products from 7 countries, including Kenya, have been granted access to China.

In addition, relevant China-Africa cooperation projects have been actively and steadily advanced in the areas of green development, capacity building, healthcare, people-to-people exchanges, and peace and security. In the next step, China will step up its efforts, benchmark progress with Africa in a timely manner, step up implementation, ensure full implementation of the eight major initiatives of the Beijing Summit of the Forum on China-Africa Cooperation, create strong impetus for the development of China-Africa relations, and benefit the people of China and Africa as early as possible. Thank you!

Economic Daily: Recently, some western think tanks and media published articles and reported that China-Africa cooperation has clearly declined and regressed in recent years. Some also say that under COVID-19, China has paid more attention to domestic development and less attention to Africa. What is your comment on that?

Gao Feng: The statements and reports you mentioned are biased and not in accord with the facts. In fact, strengthening unity and cooperation with African countries has always been an important cornerstone of China's independent foreign policy of peace and a long-term and firm strategic choice for China. Since the initiation of the Forum on China-Africa Cooperation in 2000, China-Africa cooperation has entered a fast track, and the results have widely benefited the people of both China and Africa. China has contributed more than 20% to Africa's economic growth for many years. Since the 18th National Congress of the Communist Party of China, China has always been guided by the principle of sincerity, real results, amity and good faith and the principle of pursuing the greater good and shared interests, and actively carried out practical cooperation with Africa. President Xi Jinping and African leaders presided over two summits of the Forum on China-Africa Cooperation, and announced ten cooperation plans and eight major initiatives to lead China-Africa economic cooperation and trade to achieve leap-frog development.

In the past 20 years, trade between China and Africa has increased by 20 times, taking the lead among Africa's major trading partners in terms of growth rate. China has been the largest trading partner of Africa for 11 consecutive years. In the past three years, the amount of agricultural produce imported by China from Africa has increased by 14% annually on average, making China the second largest importer of agricultural produce from Africa. China has helped Africa build more than 6,000 kilometers of railway and highway, and has built nearly 20 ports, more than 80 large-scale power facilities, more than 130 medical institutions, 45 stadiums and more than 170 schools. Chinese enterprises have created more than 4.5 million jobs for Africa. China's FDI flow to Africa has grown at an average annual rate of over 25%. By the end of 2019, there were more than 3,800 Chinese enterprises in Africa, with an investment stock of US$ 44.4 billion, which effectively helped Africa improve its industrialization level and the capacity to earn foreign exchange through exports.

At present, China has stepped up building new development patterns. President Xi Jinping has stressed on many occasions that China's new development pattern is not a closed domestic circulation but an inclusive one that connects domestic and international markets. We should not only steadily promote domestic development, but also promote common development with other countries in the world, including African countries, so as to better benefit the people of all countries. We have noticed that with the establishment of the African Continental Free Trade Area, the integration of African countries has been significantly accelerated, economic diversification faster, and emerging industries has flourished. It can be said that China-Africa cooperation has a glorious history and broad prospects. China is willing to continue to uphold the principle of sincerity, real results, amity and good faith, work with African countries to take the opportunity of the next China-Africa Cooperation Forum to be held this year, and strive to consolidate the foundation of China-Africa cooperation, tap cooperation potential, unite cooperation strength, enhance cooperation level, unswervingly promote China-Africa cooperation, support African development, and jointly build a closer community of shared future for China and Africa. Thank you!

21st Century Business Herald: After the signing of RCEP, how are the ratification procedures going?

Gao Feng: China started the domestic ratification procedures last December, which are going smoothly.

At the same time, related preparatory work is moving ahead steadily in the following areas, among others. First, tariff schedule transposition and preparations for the implementation of the rules of origin are underway to ensure China’s fulfillment of tariff reduction obligations after the agreement becomes effective. Second, related departments have combed through the obligation lists concerned with the agreement to ensure comprehensive implementation of the liberalization measures, rules and obligations of the agreement. Third, training related to the implementation of the agreement will be strengthened. MOFCOM intends to hold a national virtual training session on January 18th and 19th to provide a systematic introduction to the agreement on goods, services, investment, rules, rules of origin, and customs facilitation, in order to help localities, industry intermediaries and companies get familiarized with the rules and explore space for cooperation and development in market competition.

China's ratification and preparations for implementation will be completed within six months. Thank you.

Yicai TV: It is reported that the European Union Chamber of Commerce in China and MERICS of Germany are due to publish a report on the potential impact of economic decoupling, which suggests that China’s decoupling from the outside world had started much earlier and that the China-US trade war only accelerated the trend. EU companies in China worry that this will force them to shrink their business in China and cost them more to adapt to the separate technologies and supply chain systems of China and the US. What is MOFCOM’s comment?

Gao Feng: We have noted the just released report. Regarding the so-called China's decoupling from the world, China has emphasized time and again that China has no intention to decouple from the world, which is also impossible.

China's independent and self-determined development and participation in international industrial chains and supply chains are not mutually exclusive. Since its reform and opening up, China has been expanding opening up, actively contributing to the world economy and a shared global industrial chain and supply chain system while developing itself. We are against undermining existing industrial chains and supply chains in any name or unilateralist and protectionist practices to manufacture the so-called decoupling.

At present, China is accelerating the creation of a new development paradigm and actively pushing for more open domestic and international dual circulation. China will continue to expand market liberalization and work with others to better ensure the security, efficiency and stability of global industrial chains and supply chains, promote globalization of a higher level, and build an open world economic system. We would like to provide better services for global investors, including European companies and create a favorable business environment for common development. Thank you.

Economic Daily: Recently, MOFCOM and 11 other departments jointly released the Notice on Measures to Bolster Mass Consumption and Unlock Rural Consumption Potential. What plan does MOFCOM have to fill the gaps in rural consumption?

Gao Feng: Rural consumption is an integral part to the domestic market and boasts enormous potential. According to the arrangement for rural consumption at the 5th Plenum of the 19th CPC Central Committee, the Central Economic Work Conference, and the Central Rural Work Conference, MOFCOM will focus on eliminating barriers and filling the gaps in rural circulation networks to improve life quality for rural residents and underpin rural revitalization.

First, we will improve rural circulation systems. We will enlarge the coverage of e-commerce in rural areas; improve the logistics systems at county, township, and village levels; reinforce county-level delivery hubs and village-level logistics stations; unblock two-way circulation channels between urban and rural areas. We will encourage leading distributors to go down to the rural market; promote integration of distribution outlets; support construction of township commercial centers; encourage pickup trucks to flow to the rural market; improve the quality of goods and services supplied to the rural market.

Second, we will enhance the circulation network for rural products. We will make more efforts in renovating agricultural produce wholesale markets and farmers’ markets; improve the cold chain infrastructure for agricultural produce; beef up the weak links in cold chain logistics; allow agricultural products to flow smoothly and safely from farm to table; all these will benefit farmers and consumers more.

Third, we will cement the progress in commerce-enabled poverty reduction. We will maintain steady measures to help poor areas broaden marketing channels, create new ways of distribution, unblock the distribution networks, and help poverty reduction industries to grow and thrive. We will help those who have stepped out of poverty remain steadily employed, and connect the achievements in poverty reduction effectively with the rural revitalization strategy, to support the development of poor areas and the life improvement of its people.

Fourth, we will increase the supply capacity of agricultural products. We will ensure supply while containing the epidemic, improve the joint supply mechanism to ensure adequate supply of agricultural products and a steady market operation. We will make full use of big data and mobile internet in monitoring, forecast, and alarming of the agricultural produce market and provide informed guidance. Thank you.

Gao Feng: This is the end of today’s press conference. Thank you.

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