Xing Huina:

Thank you, Mr. Li, for your introduction. Now, it is time for questions. Please indicate the media organization you work for before raising questions.

China Daily:

China's foreign trade volume maintained double-digit growth in 2021, hitting a record high. What are the main driving factors? What are your expectations for foreign trade this year? Thank you.

Li Kuiwen:

Thank you for your questions. China's foreign trade achieved rapid growth in 2021. Its volume exceeded the $5 trillion and $6 trillion thresholds over the year, setting new highs while its quality improved steadily. It has gotten off to a good start in the 14th Five-year Plan period. In our view, the main factors driving the growth are as follows:

First, China maintained a globally leading position in economic development and pandemic control. In 2021, the Chinese economy continued to recover. The country took new steps to build a new development pattern, made new progress in high-quality development, and maintained rapid growth in its major economic indicators. The Chinese economy is resilient, and the fundamentals sustaining China's steady and long-term economic growth remain unchanged. Domestic production and consumption demand provided strong support for the steady growth of foreign trade. According to customs statistics, in 2021, China's import and export of intermediate products rose by 24.9% and 28.6%, respectively, while the import of consumer goods increased by 9.9%.

Second, the global economy remained on a trajectory toward recovery. The global economy showed a recovery trend in general in 2021. The World Bank and the International Monetary Fund both predicted that the global economy would grow by over 5%, and the World Trade Organization predicted that the global trade of goods would go up by 10.8%. In 2021, China's export to the EU and Africa both grew by over 20%, and its export to Latin America increased by over 40%. From a product perspective, on top of the high growth in 2020, China's export of products related to the stay-at-home economy, such as laptops, tablets, and household appliances, increased by 13.2% in 2021, while its export of medical and medicinal materials as well as medicines grew by 101.2% – strong support of the global fight against COVID-19.

Third, policies and measures to stabilize growth continued to work. Since last year, China has introduced a series of policies and measures to stabilize market entities and the market as well as to ensure a stable and smooth industrial chain and supply chain of foreign trade. Examples are maintaining reasonable and sufficient liquidity, extending and improving some tax and fee cuts, implementing new structural tax cuts; increasing financing support for micro, small, and medium companies and manufacturing businesses; deepening reforms to streamline administration and delegate power, improve regulation, and upgrade services; continuously optimizing the business environment, accelerating the development of new forms and models of business in foreign trade; further deepening the reform of cross-border trade facilitation; and promoting the reform and innovation in trade and investment facilitation in pilot free-trade zones. Their sound implementation ensured continuous effects, helping foreign trade companies out of difficulties and greatly stimulating the vitality of market entities. They served as an important support for the steady growth of foreign trade.

Regarding the trend of China's foreign trade, as I mentioned earlier, as the COVID-19 pandemic is still undergoing many twists and turns, China faces a more complicated, severe, and uncertain international environment, and the comparative advantage and cardinal effect that the Chinese economy can depend on to take the lead to recover may weaken. All the above bring more uncertainties, destabilizing factors, and imbalances to the development of China's foreign trade in 2022. However, we should understand that the fundamentals sustaining China's steady and long-term economic growth remain unchanged, which will provide powerful support for maintaining stability in foreign trade. Thank you.