Bloomberg: 

At the end of December, MOFCOM announced a "request for comments" on looking to restrict the export of manufacturing technology for solar cells, amongst other things. Can you provide more details about this effort? And can you also explain how this is different from the US's looking to restrict exports of technology to manufacturers of semiconductors? Thank you.

Yang Tao:

First of all, thank you for your questions. There is a deviation in your understanding of the restrictions on the export of solar cell production technology. Recently, in accordance with the Foreign Trade Law of the People's Republic of China and the Regulations on the Administration of Technology Import and Export of the People's Republic of China, MOFCOM and the Ministry of Science and Technology revised the catalog of technologies that are subject to export bans or restrictions and publicly solicited opinions. Currently, we are sorting out the opinions and suggestions we have collected and will carefully study them along with relevant departments. Next, we will continue to uphold open cooperation, constantly optimize the business environment of technology trade, and promote global technology trade exchanges and cooperation. Thank you.

Red Star News:

Over the past year since the RCEP agreement entered into force, dividends have started to emerge, and all parties have paid close attention to this. What achievements have been made since the RCEP agreement entered into force in 2022? Thank you.

Guo Tingting:

Thank you for your question. Let me take this question. The Regional Comprehensive Economic Partnership agreement, also known as the RCEP agreement, entered into force on Jan. 1, 2022. MOFCOM firmly implements the decisions and arrangements of the CPC Central Committee and the State Council. Together with relevant departments, we have applied and fulfilled the rules and market access commitments of RCEP and promptly issued the guiding opinions on the high-quality implementation of the RCEP to guide and support local governments, industries, and enterprises to seize opportunities and expand trade and investment cooperation with RCEP members. Positive results have been achieved, which are mainly reflected in:

First, the agreement played a powerful role in the development of trade and investment. From the perspective of trade, the total import and export between China and other RCEP members reached 12.95 trillion yuan in 2022, up 7.5% year-on-year, accounting for 30.8% of China's total foreign trade. In particular, China's import and export with eight of the members grew by double digits. From the perspective of two-way investment, in 2022, China's non-financial direct investment in other RCEP members was $17.96 billion, up 18.9%, while China attracted their direct investment of $23.53 billion, up 23.1%. The growth rate of two-way investments was higher than the overall level.

Second, local governments have achieved initial progress in aligning policies with the RCEP agreement. MOFCOM offered them comprehensive guidance and support in this regard. We organized 10 training sessions nationwide along 10 themes, with a total attendance of more than 400,000. We upgraded the free-trade zone public services platform, helping local governments and enterprises make full use of tariff reductions and cumulative rules of origin under the RCEP, seize the opportunities for trade and investment liberalization and facilitation, and deepen cooperation on industrial and supply chains with other participating countries. Some local governments have taken the active implementation of RCEP encouraging obligations as leverage to optimize the business environment. They have worked to build high-level open cooperation demonstration zones for RCEP and attract industries, capital, and talent, thus significantly improving the local trade and investment climate.

Third, enterprises enjoyed tangible benefits of the agreement. The implementation of the RCEP agreement, combined with previous bilateral free trade agreements that China signed with other participating countries, has delivered more benefits to enterprises. In 2022, Chinese export companies applied for a total of 673,000 RCEP certificates of origin and declarations of origin worth 235.3 billion yuan, with an estimated 1.58 billion yuan in tariff reductions from importing countries. Chinese companies benefited from an estimated 1.55 billion yuan in tariff reductions for the import of products worth 65.3 billion yuan.

Fourth, participating countries worked together to enhance the outcomes of the agreement. China actively promoted the ratification of the agreement by more countries through mechanisms such as RCEP ministerial meetings and joint committees. South Korea, Malaysia, and Indonesia, among other countries, have already rectified and implemented the agreement. At the same time, we closely cooperated with other RCEP members to promote the implementation of tax reduction obligations and facilitation measures, optimize the regional business environment, and enhance the outcomes of the agreement.

In the next step, MOFCOM will continue to ensure high-quality implementation of RCEP, advance the continuous release of its dividends, and give full play to the positive role of RCEP in ensuring stable performance in foreign trade and investment, promoting cooperation on industrial and supply chains, and driving high-quality development. At the same time, we will work with other RCEP members to promote the full and effective implementation of the agreement for all signatory countries, strengthen mechanism development, and provide a strong guarantee for the steady and sustained progress of RCEP. Thanks!