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Speakers:

Mr. Wang Wentao, minister of commerce

Mr. Wang Shouwen, China international trade representative and vice minister of commerce

Ms. Guo Tingting, vice minister of commerce

Chairperson:

Shou Xiaoli, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Jan. 26, 2024

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office (SCIO). Today we are very pleased to have invited Mr. Wang Wentao, minister of commerce; Mr. Wang Shouwen, China international trade representative and vice minister of commerce; and Ms. Guo Tingting, vice minister of commerce, to brief you on seeking progress through stability and promoting stability with progress for new breakthroughs in high-quality commerce development, and to take your questions.

Now, I will give the floor to Mr. Wang Wentao for his introduction.

Wang Wentao:

Ladies and gentlemen, good afternoon. I am very happy to be attending this SCIO press conference to brief you on the business operations in 2023 and the work plans for implementing the deployments of the Central Economic Work Conference in 2024. First of all, on behalf of the Ministry of Commerce (MOFCOM), I would like to express my heartfelt thanks to everyone for your long-term concern and support for commercial work.

In the past year of 2023, under the strong leadership of the Communist Party of China (CPC) Central Committee with Comrade Xi Jinping at its core, we resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council, united as one, and overcame difficulties to promote overall stable business operations throughout the year and take a step forward in high-quality development. I think this progress can be summed up simply using three terms:

The first is "ensuring stability." Our business work is all related to China's three drivers of growth: consumption, investment and net exports. Specifically, total retail sales of consumer goods reached unprecedented levels, with final consumer spending contributing 82.5% to economic growth in 2023. Building upon a robust starting point, we witnessed a positive upturn in foreign trade denominated in RMB. The share of our exports in the international market remained consistently stable at around 14%. Two-way investment also flourished, with the actual utilization of foreign capital marking the third-highest in history, and non-financial outbound direct investment increasing by 16.7% in RMB. On the whole, these areas maintained a stable foundation and made substantial contributions to the overall recovery of the national economy.

The second term is "improvement." This signifies the constant optimization of structures and the continuous enhancement of development quality and substance. For instance, in terms of consumption, online retail sales surged by 11%, maintaining a rapid growth rate, while service retail sales experienced a remarkable 20% increase, revealing substantial growth potential. In foreign trade, China's import and export proportion of intermediate goods reached 61.1%, marking a historical high. Notably, the import and export share of private enterprises increased by 3.1 percentage points, reaching 53.5%, firmly establishing their significant role. Foreign investment also witnessed an upswing in high-tech industries and manufacturing. The growth rate of foreign investment in manufacturing, wholesale and retail outpaced the average, while foreign investment collaboration in green, digital and blue industries continued to expand.

The third term is "empowerment." New development dynamics continued to emerge in various sectors. For instance, the share of online retail sales of physical goods in total retail sales reached a record high of 27.6%. Green, health and smart products as well as domestic "trendy products" have gained immense popularity, evolving into fresh patterns of consumer preferences. Notable achievements include a 50% increase in automobile exports and a 19.6% rise in cross-border e-commerce exports, both of which have emerged as new engines for foreign trade growth. The number of newly established foreign-funded enterprises surged by 39.7%, reflecting the enthusiasm of foreign investors to participate in opportunities within the Chinese market. There have also been new developments and breakthroughs, such as the successful completion of text negotiations for the World Trade Organization (WTO) Investment Facilitation for Development Agreement, which is the first major issue that China has taken the lead in at the WTO. We have signed or upgraded free trade agreements with four countries including Nicaragua. The release of China's inaugural plan on enhancing international economic and trade cooperation in digital and green fields received positive responses from more than 30 countries and international organizations.

This year marks the 75th anniversary of the founding of the People's Republic of China and holds paramount significance in achieving the goals and tasks outlined in the 14th Five-Year Plan (2021-2025). The MOFCOM will continue to adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and fully implement the guiding principles of the 20th CPC National Congress and the second plenary session of the 20th CPC Central Committee. We will implement the directives of the Central Economic Work Conference and the Central Conference on Work Relating to Foreign Affairs. Upholding the "three important" positioning, we will propel consumption from post-pandemic recovery to sustained expansion, fortify the foundations of foreign trade and investment, expand high-level opening-up to the global community, and through tangible actions and outcomes in high-quality business development, contribute positively to economic recovery and the promotion of Chinese modernization.

Now, my colleagues and I are ready to answer your questions. Thank you.