CRI:

I have a question for Mr. Zhou. You just mentioned the BRICS New Development Bank. It was established two years ago, and has now become a highlight of the fiscal and financial cooperation among BRICS countries. How is it now? And, what cooperative agreements will be reached for the next step of cooperation at this summit?

Zhou Qiangwu:

The New Development Bank is "the baby" jointly owned by our five BRICS countries. For the past two years, there has beengreat progress in organizational structures, business development, financial and personnel policy making, some internal control policies as well as its general strategy.

At the same time, we have made phased progress in financing. We issued 3 billion yuan of green bonds on the Chinese capital market. The New Development Bank also started relevant procedures for inviting new members and has made solid progress in approving projects since last year. It approved seven projects last year, worth US$1.55 billion. All are sustainable development projects. Generally speaking, it is inspiring that thenew multilateral development bank has made such great achievements within only two years after operation.

This year, we will make new progress at the Xiamen summit to push forward the development of the New Development Bank. First, you may notice that the New Development Bank has established an African regional center, which opened on Aug. 17 in Johannesburg.

Second, we will provide a reserve project fund for the five BRICS countries to apply for loans, and this will boost the development and implementation of relevant projects.

Moreover, we will approve some new projects in 2017. The bank is expected to have a total loan value reaching US$2.5 billion in the whole year. Besides, the permanent office building of the New Development Bank headquarters will start construction in Shanghai soon. We believe that the bank will enjoy new opportunities for development at the BRICS Xiamen summit. Thank you.

TASS:

I have two questions. The first is for Mr. Zhou Qiangwu. In September, Russian President VladimirPutin will meet Chinese President Xi Jinping, and they are expected to discuss issues related to economic and trade cooperation. What do you think of the prospects for bilateral financial cooperation?

My second question is about use of the yuan and ruble, instead of U.S. dollars, in trade and investment between China and Russia. What do you think of its prospects? Will it develop in a good direction?

Zhou Qiangwu:

The two State leaders will hold a meeting at Xiamen, and discuss a wide range of issues. I believe financial cooperation will be on the list.

There are several financial cooperation mechanisms between China and Russia. One of them involves regular meetings of Chinese and Russian finance ministers. The latest meeting between them was held in Shanghai in June. It paved the way for the upcoming BRICS summit and the two State leaders' discussion on financial cooperation.

China and Russia both face challenges in the macroeconomic field. They have also developed a consensus on issues like pushing forward structural reforms and promoting cooperation under bilateral and multilateral frameworks. China has expressed its welcome and support to Russia issuing yuan-denominated sovereign bonds in the Chinese market.

I believe the two countries will further strengthen their macroeconomic cooperation. They will surely show stronger support for reform of the global governance system and even stronger opposition to protectionism. Under the Belt and Road Initiative, they will explore innovative methods on financing and connectivity development. Particular attention will be paid to the building of a financing mechanism under the Initiative. As a matter of fact, after the Belt and Road Forum in May, the two countries began exploring ways to build a long-term, stable and sustainable investment and financing system involvingdiversified participants and with controllable risk.

Regarding financial cooperation, the two sides will surely exchange views in depth and over a broad range of issues. It's certainthat China will support Russia in issuing yuan-denominated sovereign bonds in the Chinese market. In due course, they will sign a bilateral auditing regulation agreement to facilitate the issuance of the bonds. I believe financial cooperation will play a positive role in the development of bilateral ties.

Ye Fujing:

I want to add a few words concerning yuan settlements. I am glad that China-Russia political and trade relations have been boosted with the China-Russia Investment Cooperation Commission playing a positive role.

China and Russia are pushing forward settlements of reciprocal currencies. However, the choice of currency is made by the market and enterprises, so the government should rather foster the environment for facilitation.

Second, local currency settlement indeed helps circumvent currency risks and reduces the transaction costs of trade and investment, so it should be encouraged.

Third, the yuan's internationalization is an inevitable trend at the current stage, and it is also a helpful participation in and complement to the current international currency system.

Forth, China-Russia cooperation on currency is an important part of the current China-Russia economic ties and is also a focus put on China-Russia financial cooperation, which we should maintain and promote in the future.

China Review News Agency:

I wonder how are BRICS members going to enhance their cooperation to deal with trade protectionism from the United States?

Ye Fujing:

We are always opposed to trade protectionism, as it goes against the trend of economic globalization and the common interests of trading nations; it only meets the expectations of certain interest groups seeking to restrict competition through protection. Trade friction is nothing to worry about. Friction should be resolved through the WTO or by bilateral negotiations within the framework of international law, rather than through unilateral actions.

China adheres to trade openness based on a principle of modest and gradual progress, the process being in line with the national conditions and the development phase of each country. Due to differences in the development phase, China and the United States, indeed, have different industrial policies. However, it is not justifiable to embrace trade protectionism on the pretense of policy differences. We have always placed great emphasis on the protection of intellectual property rights, and are ready to safeguard and promote it on various fronts, including the BRICS mechanisms.

In addition, I'd like to talk about the trend of anti-globalization, of which trade protectionism is a key part. I think anti-globalization should neither be underestimated nor overestimated. Though the sentiments are still prevalent, its momentum has decreased. It has, for instance, receded through elections in France and the Netherlands. In the United States, those who have endorsed it have also regretted their action. Therefore, we should not overestimate its impact.

Anti-globalization is hardly constructive. People have realized that it cannot help improve their lives, but will only prove counter-productive in the future. Therefore, we can be optimistic about the trend of opposing trade protectionism and any moves towards anti-globalization.

Zhou Qiangwu:

The BRICS countries have always sought to promote globalization, which has benefited all of them. In the past two years, they have clearly voiced their support for globalization on various occasions. For example, at the G20 Summit in Hamburg, leaders from the BRICS countries issued a joint statement firmly supporting a rules-based, transparent, non-discriminatory, open and inclusive multilateral trading system, implementation and enforcement of existing WTO rules and commitments, and opposing protectionism. The BRICS countries have also made positive contribution in enlisting forces opposing protectionism as one of the outcomes of the G20 summit. We, the BRICS countries, speak with one voice in opposing protectionism, no matter whether this is under the framework of the G20, BRICS or the WTO.

Press Trust of India:

My question is about economic cooperation under the BRICS mechanism. Trade and economic cooperation is a core component of the BRICS cooperation. We are both new emerging market countries, but in recent years, we can see that many BRICS countries have trade deficits between them. For example, China and India are facing such problems.

You two are from think tanks. In your opinions, what progress has been made in resolving the issue of bilateral trade deficits? What measures can we take to promote the resolving of the deficit issue and push forward fairer trade? The problem I say isn't just within the framework of the BRICS countries; it goes even beyond the WTO framework to a larger scope. What are your opinions?

Moreover, we now are saying the BRICS cooperation has entered a new era for the next decade. How do you expect this issue to be resolved in the future?

Ye Fujing:

Thank you very much for your question. In order to answer it, I think, first we should go beyond specific issues, and look at how the BRICS countries deal with the challenges we are facing at a higher level and within a wider range. We should resolve the particular issues existing in the economic and trade cooperation under this overall framework.

We need to consider whether there is a very strong impetus to enhance cooperation. We should stand at this strategic level to look at the necessity of further strengthening the BRICS cooperation, and tackle the challenges together. We should know that it is very normal for countries, including the BRICS countries, to have various problems between them. It will be abnormal if there's no challenge. The key is not challenges, but how to respond to the challenges.

We should not only view it in terms of challenges, but also see if the favorable elements for dealing with challenges are increasing. In my opinion, over the past decade of BRICS cooperation, the good factors in our cooperation haven't reduced but increased significantly.

The challenges we are facing are not more severe than in the past, but much easier for us to deal with. This is a very basic judgment. In the past years, the achievements we have made were so profound in our hearts. China and India, as well as other countries under the BRICS framework, and all those developing and developed countries, all benefit from the cooperation and have received rewards. This is an irreversible and important foundation of our cooperation.

Another important factor exemplifying the efforts of China and India to promote globalization should be our resolve to uphold the core value of multilateralism around the world.

We see some challenges facing China or India. To be more specific, they include getting the financial sector more deeply involved in the real economy, immature measures currently available to prevent financial risk, and the need for broader opening of financial markets. However, these challenges can also be considered as emerging opportunities to foster bilateral cooperation between China and India, as well as multilateral cooperation among BRICS members and other developing countries.

Problems like trade deficits can become minor and unimportant details if we take a panoramic view of development, which can be blamed on insufficient or unexplored opportunities for cooperation, rather than cooperation itself being the cause of the troubles. We will solve those problems through development and cooperation enhanced with investment and trade in commodities and services. At the same time, other problems can also be resolved if we underscore the importance of mutual openness, mutual cooperation and friendly relations.

Zhou Qiangwu:

I'd like to say a bit more on the issue. First, the trade among five BRICS countries is immense. The trade between China and India hit more than US$70 billion last year and the volume between China and Russia and China and Brazil also reached enormous proportions. It is nothing unusual to witness some trade disputes among the BRICS countries because frictions arise even among full brothers.

Second, I cannot agree more with what Director Ye has said in regard to viewing trade frictions and trade deficits in the context of development. However, I would like to add one more point, that every time when we want to solve trade frictions, we'd better work them out through dialogues rather than abuse of the trade remedial measures available, which may cause the economic and trade relations to turn sour among BRICS members.

CGTN:

At the 7th Meeting of the BRICS Trade Ministers held in August, all parties reached an agreement to promote the development of e-commerce. I wonder if there will be any kind of agreement to be reached in the field of e-commerce at the forthcoming summit. What further action is to be taken in this regard?

Ye Fujing:

The 7th Meeting of the BRICS Trade Ministers in August approved a series of documents involving the BRICS' service trade cooperation roadmap, e-commerce cooperation initiative, and investment facilitation cooperation outline. We are looking forward to the forthcoming summit to discuss specific ways of implementation, and specific measures of cooperationat the next stage.

Zhou Qiangwu:

Here I would like to add one more point. At the just concluded Meeting of the BRICS Trade Ministers, the five member states completed eight major achievements through their concerted efforts. You might have noticed that these involved issues concerning the building of the BRICS countries' electronic port networks and investment facilitation as well as economic and technological cooperation. These eight achievements will be highlighted at the forthcoming BRICS summit.

I particularly value the building of the BRICS demonstration electronic port network you have mentioned. In this respect, China may already be at the forefront in some areas. We will work together with other BRICS members to make a positive contribution to this construction.

At the same time, I would like to stress two other points I just mentioned, namely, the BRICS countries' investment facilitation and economic and technological cooperation. In my opinion, they will become two wheels guiding BRICS economic and trade cooperation to advance further. Thank you.

TASS:

Just now, you mentioned that the wide use of yuan is welcomed. Do you mean investments made by Russian companies in China? Are Chinese investors who do businesses in Russia willing to use the ruble to make deals with Russian companies?

Ye Fujing:

Since the implementation of China's reform and opening up policy, China-Russia economic and trade ties has developed rapidly.

Monetary cooperation is a vital component. Many companies and investors in China and Russia are using each other's currencies, and the governments of both sides have show great support to them in this regard.

Therefore, we should not only internationalize China's official currency, but also promote the internationalization of Russian currency, which is beneficial for the bilateral cooperation.

Hu Kaihong:

We'll wind up today's briefing. Thanks for our two experts who have joined us and thanks to you all.