International Business Daily:

Thank you. China has over 800 million people living in its counties, and this has created huge potential for consumption. In 2021, the MOFCOM worked with relevant government bodies to launch a campaign to build commercial facilities in counties. A layered approach has been taken in light of local conditions. What's the progress so far? What are the key tasks for 2022? Thank you.

Wang Wentao:

I'd like to take your questions.

Frankly speaking, commercial networks at the county level and below are the weak links of China's overall logistics system. Therefore, in 2021, the CPC Central Committee and the State Council made arrangements accordingly, and the MOFCOM and another 16 government bodies launched a campaign to build commercial facilities in counties. The campaign seeks to strengthen weak lines, ensure smooth logistics, improve commercial networks, and diversify business forms. The progress made in 2021 can be summarized in the following aspects:

First, a group of commercial sites was built or renovated. In 2021, we built or renovated 834 county-level comprehensive commercial service centers, 1,858 township-level commercial centers, and 369,000 village-level convenience shops.

Second, a group of logistics delivery facilities was improved. We enhanced the capacity of supply and marketing logistics, postal logistics, logistics enterprises, and e-commerce logistics. We have integrated and optimized the logistics resources, and improved a three-layered logistics system covering counties, townships, and villages. A total 1,212 county-level logistics centers and 14,800 village-level e-commerce parcel stations were renovated in 2021. Currently, 98% of townships and villages in China have direct access to big-brand logistics companies, and parcels can be directly delivered to more than 80% of administrative villages. Products purchased online can be delivered more efficiently to villagers. But there are still problems. Some villages are beyond the reach of the logistics networks. Due to China's vast territory and huge geographical differences and regional imbalances, some villages are hard to reach, and the costs of logistics are comparatively high in some mountainous regions.

Third, logistics channels of agricultural products were optimized and expanded. A total of 1,028 farmers' markets and wholesale markets for agricultural products were renovated. The number of agricultural products traded in wholesale markets increased 8.4% year on year, hitting one billion metric tons. Nevertheless, we need to improve the cold chain logistics for agricultural products, which is currently one of the weakest links in this aspect.

Fourth, the driving role of e-commerce entrepreneurship in boosting employment was further enhanced. Based on a demonstration project that brings e-commerce into villages, we continue to expand the coverage of e-commerce business in villages. In 2021, the online retail sales volume in villages amounted to 2.05 trillion yuan, exceeding the two-trillion mark, up 11.3%. The number of e-commerce entities in villages across China reached 16.33 million by the end of 2021.

Nevertheless, there are still weak links. The magnetic effect of agriculture and commerce is yet to strengthen, and market entities remain small-scaled, randomly scattered, and less-developed. These phenomena haven't changed fundamentally. According to feedback, mainly from rural residents, the high cost of logistics is still a prominent problem.

In addition, the commercial development across China is also varied. Take our campaign of building commercial facilities in counties, for example. For regions with sound development basis, the gap between commercial facilities in counties and mid-sized and big cities is narrowing down, and the integration between them is deepening. We have also seen progress in applying digital technologies in commercial facilities and creating new business forms in counties, but there is still room for improvement compared with the situation in developed cities. However, for underdeveloped regions with poor development basis, their weaknesses and problems are more prominent, and commercial facilities there cannot meet the local needs of daily life and production. We have been continuously making improvements by adopting a problem-oriented approach, strengthening coordination at the county level, and enhancing the leading role of the market. We have been implementing various tasks and continuously strengthening support for commercial facilities, logistics, the circulation of agricultural products, and cold chains. We have been working to promote the sales of agricultural products in cities and bring supply chain, logistics, and commodity services in counties and villages so as to further consolidate our efforts in the campaign of building commercial facilities in counties. Thank you.

Xing Huina:

Today's press conference is hereby concluded. Thank you to all the speakers and friends from the media. Goodbye.

Translated and edited by Cui Can, Wang Yanfang, Duan Yaying, Li Huiru, Zhang Rui, Liu Sitong, Zhang Tingting, Liu Qiang, Wang Yiming, Ma Yujia, Zhu Bochen, Chen Xia, Yang Xi, Wang Qian, Zhang Liying, Yuan Fang, Dong Qingpei, Jay Birbeck, David Ball and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.