CNBC:

I would like to ask what special policies will be issued for the e-commerce sector in order to speed up the high-quality development of commerce? Thank you.

Qian Keming:

Thank you for your question. E-commerce has been developing very fast over the past few years. Along with a new round of technological revolution and industrial change, China has been at the forefront of e-commerce development in the world, and it has profoundly reshaped people's production and way of life, especially since the outbreak of the COVID-19 pandemic, under which we have all felt the changes. Online shopping has become an important consumption channel for people. Last year, online retail sales of physical goods accounted for nearly a quarter of total social consumption. Since the outbreak of the pandemic, e-commerce has played a prominent role in helping fight it, securing supplies, resuming work and production and promoting replenishment of consumption. It has become a stabilizer of social and economic development. Not long ago, the MOFCOM, in conjunction with relevant departments, guided the launch of the "2021 Online Lunar New Year's Shopping Festival", which generated online retail sales of over 900 billion yuan nationwide and ensured market supply for people not travelling during the Spring Festival.

The MOFCOM, as the competent department of the e-commerce industry, always insists on developing and regulating the sector at the same time, and constantly optimizes the environment for the development of e-commerce. This year, we will focus on the following aspects.

First, we will improve top-level design. At present, we are pressing ahead with the devising of the 14th Five-Year Plan involving e-commerce development. Based on the new development stage, implementing the new development concept, and serving the building of the new development paradigm, we will put forward a series of targets, major tasks and supporting measures for the high-quality development of e-commerce in the 14th Five-Year Plan period, so as to provide new momentum for the building of a modern socialist country in all aspects.

Second, to promote innovation-driven development. We will actively develop and accelerate new types of consumption via platforms such as livestreaming e-commerce and fresh food e-commerce. We will build platforms, such as "Brand and Quality Online Shopping Festivals," to upgrade consumption and enrich content for online consumption. We will promote the integration of online and offline consumption and support the digital transformation of brick-and-mortar businesses and guide e-commerce platforms to energize small and medium-sized companies. We will also deepen the development of e-commerce in rural areas. Mr. Wang just mentioned the building of business systems in rural areas. E-commerce is a major part of that. We will ensure that poverty alleviation and rural vitalization are well integrated and coordinate government and social resources. We will carry out campaigns to boost agriculture through e-commerce and develop new infrastructures to support the rollout of e-commerce in more rural areas and help farmers increase their income. We will also ramp up efforts to advance cross-border e-commerce and expand cross-border e-commerce retail import pilot programs, inviting more and more friends and partners to join Belt and Road cooperation. We will deepen exchange and collaboration with our Belt and Road partners concerning e-commerce and share the new opportunities of the digital age. 

At the same time, we must also be aware that with the fast development of China's e-commerce platforms, unfair competition and suspected monopolistic practices, among other related problems, have already aroused wide public concern. The MOFCOM will strengthen the management of e-commerce development. On the one hand, we will guide the creation of a social creditability system, put in place a credit filing system for e-commerce companies, and promote self-discipline within the industry. On the other hand, we will enforce mandatory and binding rules We will improve the laws and regulations regarding e-commerce, and conduct supervision of each company's compliance to prevent the uncontrolled expansion of business. We will work in collaboration with relevant departments to maintain an environment characterized by fair market competition. Thanks.