CCTV:
Why, in particular, is China going to hold the Import Expo at a time of sluggish global growth, rising trade protectionism and setbacks in economic globalization? Thank you.
Fu Ziying:
President Xi Jinping has systematically expounded China's firm stance on economic globalization on many major international occasions. Hosting the Import Expo is part of our efforts to implement China's stand on economic globalization and trade liberalization as presented by President Xi.
The import expo initiated by a developing country, China, is perhaps the only one of its kind in the world. It offers an opportunity for countries at varying development levels to present their achievements in trade and investment. It is also a platform for different parties to discuss international trade and other major global economic issues. This clearly demonstrates China's sincere readiness to open its market to the world and its assumption of the responsibility, as a major country, to advance economic globalization.
Major strategies to participate in and promote economic globalization, and develop an open economy, were set out in the report to the 19th CPC National Congress. We will implement the principles established by the congress, namely, strengthening cooperation with other countries and international organizations as well as mobilizing local governments, departments and enterprises to ensure the success of the first Import Expo. With this event as a bridge, China is ready to enhance communications with its trading partners around the world, boost global trade and economic growth to achieve win-win outcomes and common development. Thank you.
Jiefang Daily:
My question is for Mr. Zhou Bo. What initiatives will Shanghai undertake to seize the opportunities created by the expo to enhance the city's role as an international trade center?
Zhou Bo:
Building Shanghai into an international trade center is a national strategy. By 2020, the city is expected to be an international trade center which matches China's importance in the global economy and trade value. So far, we have greatly improved its ability to pool and allocate trade resources and attract innovative institutions.
For instance, the total volume of imports and exports handled in various ports in Shanghai accounted for more than one fifth of the nation's total. The imports handled in Shanghai accounted for 26.7 percent of the nation's total. Of the commodities imported into China via Shanghai, many represent a share of at least 30 percent in their individual market in the country. The service trade handled in Shanghai also accounted for more than 30 percent of the national total.
Besides, several commodity trading centers have been built in Shanghai. They all closely linked with the financial sector. The trade volume of Shanghai's financial markets reached nearly 1,400 trillion yuan, and the figure is expected to rise higher this year. Globally, Shanghai is one of the cities with the most complete financial facilities and infrastructure. We have 13 special financial institutions, including a stock exchange center, financial futures exchange center, gold exchange center, forex trade center, and insurance exchange center. With the help of the free trade zone established in Shanghai, we have made many positive attempts in improving trade facilitation, opening our economy wider, and improving investment environment. Many of our experiences are positive and can be used in other places in China.
The China International Import Expo will provide precious opportunities for Shanghai. First, we will improve our role in exports so as to better serve the country and the world. Shanghai has been a major export platform in China, and the expo will give us an opportunity to turn the city into an import platform too. Besides, we will open our economy wider to the outside world with the help of the upgraded free trade zone. We will work harder to use the zone to test the country's ability to cope with stress, to implement various pilot programs, and to promote the development of the Belt and Road Initiative.
More activities will be launched to enhance Shanghai's attractiveness as a trade center. We hope more new business will be formed and new models will emerge. We will do our best to support them. We hope we can help the expo exert a wider and deeper influence in the world. We also hope that we can make greater contributions to building Shanghai into an international trade center. Thank you.
China Daily:
What measures will the China International Import Expo take for the exports from developing countries and the least developed countries, especially for the entry of related products into the Chinese market? Thanks.
Wang Bingnan:
The most important goal of hosting the China International Import Expo is to provide a public platform for countries at different levels of development to improve their national influence and deepen their trade cooperation with others. We will take the following measures to assist the entry of related products from developing countries and the least developed countries into the Chinese market:
Firstly, sharing market opportunities and achieving common development. As we all know, China is a huge market with a population of over 1.3 billion. The demand for good quality and special products and services is increasing day by day. To set up such an international cooperation platform, we sincerely invite the developing countries and least developed countries to organize their companies to participate in the China International Import Expo. The China International Import Expo will provide them an opportunity to exhibit their special and competitive products and services, share the huge business opportunities in the Chinese market, strengthen their cooperation with China and other countries, and strive for mutually beneficial cooperation and common development.
Secondly, holding activities for promotion and facilitating cooperation channels. Trade and investment are inseparable and complementary. With the aim of facilitating the connectivity between trade and industry, and creating new channels for cooperation in trade and investment, we will organize a series of economic and commercial activities including a supply-demand meeting point, a negotiation meeting point and an investment seminar in accordance with the requirements from participating countries, especially from the developing countries and least developed countries.
Thirdly, providing assistance and improving support services. We will provide necessary assistance and help some developing countries and least developed countries at the China International Import Expo. For instance, we will reduce or waive exhibition fees for some countries. We will improve support services for the convenience of exhibitors and their products in entry and exit during the expo. According to different specifications and types of the products, we will establish an online and offline one-stop trading platform to provide display and trade services in a long term after the expo. Thanks.
The Wall Street Journal:
President Donald Trump will visit China. So, will there be any achievements made in terms of economy and trade after this visit? And before Trump's visit to China, what kind of exchanges have the both sides made in preparation? Compared to the President Obama's visit to China, what's the difference in terms of preparing the economic and trade activities? Also, will there be any new measures with regard to China's opening up?
Fu Ziying：
Thanks for your questions, which feature a quite hot topic. China has already published the date of President Trump's visit and relevant information. What I can tell you is that Wilbur Ross, the US commerce secretary, will lead a business and trade delegation to China at the same time. Related economic and trade activities will be undertaken between China and the U.S., and cooperation agreements will be signed. As you asked about the preparations that both sides have made for this visit, I may say that we have already reached consensus on some aspects and we are striving to make achievements in terms of economy and trade, as well as the next stage of China-U.S. cooperation. We also expect the two sides will produce pragmatic achievements on the basis of a consensus shared between them, in a bid to promote the China-U.S. relationship to usher in a better future.
China National Radio (CNR):
This time, the countries invited to the China International Import Expo are not limited to those along the Belt and Road. Would you please tell us which countries the expo is mainly targeting and what has been taken into consideration for that? Thank you.
Wang Bingnan:
At the opening ceremony of the Belt and Road Forum (BRF) for International Cooperation, President Xi Jinping announced that China will host the China International Import Expo starting in 2018. Since then, the international community has attached great importance to the event, and many countries and companies have expressed their wishes to participate in the expo through different channels. In response to their concerns and to give all the participants easier and quicker access to the expo, the Import Expo Preparatory Committee Office has started the work for inviting exhibitors worldwide. In mid-October, we sent invitations to more than 200 trading partners. We hope corporations all over the world will participate in the expo as well. From the information we've got so far, the work for inviting exhibitors overseas is proceeding smoothly.
We estimate that more than 100 countries and regions will send their corporations to attend the first Import Expo. We will release a specific invitation list later, and we will keep you informed of the progress in a timely manner. Here it is necessary to point out that the first China International Import Expo is not an expo in the common sense. It is an open cooperative platform provided by China for all countries to display their national development achievements and carry out international trade. We will invite the participating countries on an extensive basis. And we sincerely welcome corporations and guests from all countries, including those along the Belt and Road, to be present at the first Import Expo. Thank you.
CRI:
You have just mentioned that the China International Import Expo will be made into a landmark project implementing the new development philosophy and promoting a new round of opening up. How should we understand that? And what benefits and effects will there be in holding such an expo to carry out the new development philosophy and deepen the opening up? Thank you.
Fu Ziying:
China has entered a new era, wherein the Chinese economy has entered a new normal. Foreign trade is an important force to stimulate China's economic growth. We must seriously study and understand the new development philosophy put forward by General Secretary Xi Jinping to promote the development of foreign trade in the new era.
The expo is one of the most important contents of that, and a most important step in the innovative development of foreign trade in the new era. We have to follow the new development philosophy, and made the expo into an innovative, coordinated, green, open and sharing event. Just now, Mayor Zhou said Shanghai is also working hard on various security and logistics aspects for the expo in accordance with the demands of green development. This expo is a high-level, low-carbon and green event, reflecting the demands of cyclic development. The threshold for participating in this expo is relatively high, and some of the products to be exhibited, including some services, must certainly meet the demands of the green economy, the demand for innovation, and the need for openness and sharing. They must fully show the new development philosophy.
Nikkei:
U.S. President Donald Trump will visit China next week. He is concerned with the imbalanced trade between U.S. and China. China's Ministry of Commerce has expressed its willingness to expand the import of American products. What products do you think can be included in these expanded imports by China?
Fu Ziying:
Thank you for your question. You might know that the governments, business circles and scholars of both countries pay close attention to the trade imbalance, which is an old question, as well as a new issue. The reasons for imbalanced trade are various and complicated. Every year, China's Ministry of Commerce will publish a whitepaper on foreign trade, explaining the current situation and the reasons for the imbalanced trade between China and the U.S., and expressing hopes and suggestions for solving the situation.
I mentioned that the reasons for the imbalanced trade are complicated. Fundamentally, the situation is caused by the different economic structures of the U.S. and China, the different industrial distribution of the two countries, and the international division of labor. Besides, the imbalanced trade also derives from the two countries' statistical systems, which inevitable contain statistical errors and have different methods of calculating entrepot trade factors. And there is a very important reason -- the U.S. controls on high technology equipment sales. China has a market demand, but the U.S. is not willing to satisfy its needs.
China keeps a favorable balance in the trade of labor-intensive products, but in the trades of capital and technology-intensive products, agriculture products, and especially services, China has seen a trade deficit for a long time. This fully proves that both in U.S. and China, no matter whether in commodities or services sector, trade always follows the market rules, and the result is decided by the market, the importers and the customers.
We could do some analysis. According to the data my colleague gave, China was the biggest foreign export market for the U.S., and it's also one of the markets with the fastest growth. In the past 10 years, the growth of U.S. exports to China reached 11 percent every year, which exceeded the four percent average level of the total exports of the U.S. in the same period. In 2016, the U.S. exports to China have quintupled from the figure in 2001; however, in the same period, U.S. exports to other countries only increased 90 percent overall. China has become an important overseas market for many American products. For example, China is the biggest market for U.S. airplanes and soybeans. As to automobiles, integrated circuits and cotton, China is America's second biggest export market. The 62 percent of soybeans, 17 percent of automobiles, 14 percent of cotton and 25 percent of Boeing aircraft sold overseas by the U.S. came to China. I would like to ask you, if China is not an open market, how could these goods have been exported to China? And three decades ago, could American goods be exported to China?
So, Chinese President Xi Jinping has stressed that China did not pursue a trade surplus painstakingly. That's why we plan to hold the China International Import Expo. We will follow the new development philosophy and make adjustment to cope with China's new contradictions in the new era.
I had mentioned that Wilbur Ross, the U.S. Secretary of Commerce, will lead a delegation to China. I know you are keen to know what goods will be imported and how many of them will be imported, but I must observe professional ethics and tell you now. However, I can assure you that the result will be positive and balanced. Thank you.
Dragon TV:
Mr. Zhou, would you please give us more details about the "six days plus 365 days" one-stop import transaction service platform, built both online and offline to facilitate business deals with professional support? Thank you.
Zhou Bo:
As I have briefed you, we'll provide professional, all-round and multi-pronged services to further strive for the expo's success. Following the guidance of the Ministry of Commerce, we'll establish a "six days plus 365 days" one-stop import transaction service platform within and beyond the period of the expo, making it part of our routine services.
First, we'll establish a one-stop import platform to provide regular transaction services. With the full-fledged development of the internet, we are able to forge ahead with a connection between exhibitors and purchasers with accurate information available both online and offline. We'll collect both supply and demand information, including the year-round, seasonal and one-off information, to narrow the information gap. At the same time, we'll constantly update purchase and trade dynamics, and also offer consultation and business match-making services.
Second, we'll expand multi-pronged connections and set up alliances among purchasers in different categories. We'll make full use of the influence of leading companies in different sectors to offer business match-making services for exhibitors and physical retailers, cross-border e-commerce, trade agents and exhibition and transaction centers. Take physical exhibition for example. We'll organize and explore exhibition platforms opening to various transactions and providing perennial showcases of the specialties of participant countries, especially, those involved in the "Belt and Road" Initiative.
Third, we'll pool market resources to provide a broad range of professional services. Shanghai enjoys certain advantages in the service sector inclusive to both domestic and overseas markets, and we'd be delighted if the service suppliers from home and abroad could join us to offer their professional support to purchasers and exhibitors all over the world. Thank you.
Macau Asia Satellite Television (MASTV):
You mentioned that enterprises from over 100 countries and regions will attend this expo. My question is: How will the Chinese government organize buyers to purchase at the scene so that the expo could achieve tangible results? Thanks.
Wang Bingnan:
As you said, merchants will play a vital role in this expo, and this aspect is going to take much effort from the Ministry of Commerce and the Shanghai Municipal Government. We will organize exhibitors and buyers to engage in purchasing activities under the government-guided, market-oriented and company-participation principle.
As for how to organize such work, we will take several measures. First, we will invite large-scale and competitive enterprises to attend the expo specifically for purchasing. We also welcome buyer delegations organized by specific provinces and cities, centrally administered state-owned enterprises, chambers of commerce as well as other countries. Second, in order to better promote the expo, we will hold press conferences and road shows in major target cities and countries. At the same time, we welcome the mainstream press, as well as new media such as Weibo and WeChat, to promote public awareness of the expo. Third, we will offer the list of exhibitors, information on products and their contact details to purchasers ahead of the expo, facilitating their negotiations and good communications at the scene. Fourth, we will provide better professional support services for trade promotion. We will build a one-stop import transaction service platform to help buyers and exhibitors apply for licenses and make appointments for business talks. Besides, the platform also provides services such as multilingual translation and business consulting. Through these efforts, we hope to have a successful and world-class import expo. Thanks.
Fu Ziying:
I would add that the China International Import Expo also provides an important trade platform for Hong Kong and Macao. We welcome enterprises from Hong Kong and Macao to attend the expo. We will have preferential policies for them to exhibit and carry out purchasing activities. Meanwhile, for companies in the Chinese mainland, they can only purchase at the expo, but will not be allowed to exhibit. All these arrangements are a reflection of the principle of "one country, two systems."
Shanghai Securities News:
The China International Import Expo being held next year is a major step for the country to expand imports. Specifically, what will the Ministry of Commerce do in the future to increase import? Thank you.
Wang Bingnan:
I'd like to stress the expo is an important measure for the country to increase its openness to the outside world in a new era. The Chinese government highly values imports. In recent years, we have taken active and effective policies to increase imports through multiple channels. Since 2013, the State Council has launched a series of policies and measures covering taxation, financing, optimized management and facilitation, all aimed at expanding imports and achieving balanced trade. In the future, we will focus on the following three aspects:
First, we will improve our fiscal, taxation and financial policies to encourage import expansion. We will reduce tariffs on some consumer goods to increase the inward flow and improve the overall import structure. By adjusting the "Catalogue of Encouraged Technology and Product Imports", and encouraging banking and financing agencies to strengthen their support of import credits, we will expand purchases of advanced technological equipment and key parts.
Second, we will improve the supply-demand relationship, as well as trade conditions, step up integrated customs clearance procedures and strengthen the quarantine inspection system to further facilitate inward trade.
Third, we will continue with import management reform to streamline administration, delegate more powers, enhance regulations where necessary and provide better services. We will explore innovations in the government supervision model, and improve import management and related services. At the same time, we will improve the import promotion system, strengthen the platforms that can promote imports and make further innovations in import trade modes. Take auto imports for example: We have explored innovative ways for parallel importation. More active exploration in such sectors will be carried out in the future.
While carefully preparing for the first expo, the Ministry of Commerce and related departments will continue to implement the aforementioned documents and policies issued by the State Council, improve and refine various policies and measures, try to create a fair, law-based, internationalized and effective business environment, and promote continued, healthy and stable growth of foreign trade. Thank you.
Hu Kaihong:
This is the end of today's conference. Thank you.
