China News Service:

Establishing pilot free trade zones (FTZs) is an important measure of the CPC Central Committee for advancing reform and opening up in the new era. Through explorations based on differentiated conditions and stress testing, pilot FTZs are expected to accumulate experience for high-standard opening-up. What achievements did the MOF make in promoting the construction of pilot FTZs last year? And what measures will be taken this year to further promote their high-quality development? Thank you.

Wang Shouwen:

Thank you. In July last year, General Secretary Xi Jinping presided over the 20th meeting of the central committee for deepening overall reform. Xi spoke highly of the achievements already made in the construction of pilot FTZs and made clear requirements for future work. The MOF, together with other relevant departments and localities, resolutely implemented General Secretary Xi Jinping's important instructions, and in accordance with the decisions and arrangements of the CPC Central Committee and the State Council, made new progress in the construction of pilot FTZs.

First, we further broadened market access, as Minister Wang Wentao just mentioned, and released China's first negative list for cross-border trade in services in South China's Hainan Free Trade Port. The adoption of the negative list represented a major breakthrough in China's management model of cross-border service trade as well as a major step forward in promoting the further opening up in cross-border trade in services.

Second, we further shortened the negative list for market access of foreign investment in pilot FTZs. As we know, China released the first such negative list in 2013. In 2020, the number of items on the negative list was reduced to 30 after six adjustments. Last year, the number of items was further reduced from 30 to 27. China has kept opening wider to the world in investment.

Third, we rolled out a slew of reform measures to boost trade and investment facilitation. We specifically issued a document to grant pilot FTZs greater decision-making power for reforms with 19 measures to enhance trade, investment, international logistics, and the degree of convenience for the financial sector to serve the real economy and to explore judicial guarantee for trade and investment facilitation. We also issued policy documents to strengthen the protection of the ecological environment, pursue high-quality development, and strengthen fair competition.

Fourth, we continued to achieve institutional innovation. Establishing pilot FTZs is not just for the development of some regions. More importantly, it is to accumulate rich experiences for major national strategies. Last year, we unveiled a new batch of 18 best-practice cases. Until now, China's pilot FTZs have seen their successful practices in 278 institutional innovations promoted on the national level.

Fifth, we promoted the development of pilot FTZs. For example, the pilot FTZs have contributed to the stability of the overall performance of foreign trade and foreign investment. Last year, the use of foreign investment in China's 21 pilot FTZs rose 19%, 4.1 percentage points higher than that of the whole country. Their imports and exports increased by 29.5%, 8.1 percentage points higher than that of the whole country. Although the pilot FTZs are small in size, they contribute 18.5% to the total use of foreign investment in China and 17.3% to the country's imports and exports.

This year, we will continue to resolutely implement General Secretary Xi Jinping's important instructions and further promote the high-quality development of pilot FTZs.

First, we will pilot institutional opening-up in line with international high standards in pilot FTZs and free trade ports with the right conditions. As Minister Wang Wentao mentioned, China already took some new measures concerning free trade agreements, including applying to join CPTPP and DEPA. Drawing on these high-standard free trade agreements, we will step up efforts to explore and promote institutional opening-up in the fields of trade in goods, trade in services, e-commerce and intellectual property rights.

Second, we will promote the formulation and implementation of a negative list for cross-border trade in services applicable to all pilot FTZs. Last year, we issued a negative list for cross-border trade in services in Hainan Free Trade Port. On the basis of this list, we will formulate a negative list that will apply to all the 21 pilot FTZs this year so as to expand the scope of opening-up and accumulate experience for wider opening-up in the future.

Third, the MOFCOM will further support the growth of export-oriented industries and contribute to the dual circulation development paradigm where domestic and overseas markets reinforce each other. We will provide targeted suggestions for pilot FTZs and let them carry out whole-industrial-chain opening up and innovation based on their strategic roles, local conditions, and comparative advantages. We will improve the precision of our work on investment attraction, strengthen the effort on attracting industrial chain investment, and optimize service systems for overseas investment. We will also attract global resources of the industrial chains and accelerate the construction of competitive export-oriented industrial clusters so as to give full play to the leading role of pilot FTZs in carrying out high-level opening up.

Fourth, the MOFCOM will further put forward a new set of measures that are proven to work in pilot FTZs and can be replicated and applied elsewhere. We will give full rein to the initiative of pilot FTZs, strengthen explorations based on their differentiated conditions, and put forward more systemic innovation achievements that can be replicated and applied elsewhere. These achievements should be piloted at the provincial level, and those with fruitful results should be compiled as the seventh volume of reform and pilot experiences. After being approved by the State Council, these experiences will be further promoted across the country. Thank you.

Xing Huina:

Due to time constraints, we will have one last question.