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Read in Chinese

Speakers:

Ms. Guo Tingting, vice minister of commerce

Mr. Yang Tao, director general of the Comprehensive Department of the Ministry of Commerce (MOFCOM)

Mr. Xu Xingfeng, director general of the Department of Market Operation and Consumption Promotion of MOFCOM

Mr. Li Xingqian, director general of the Department of Foreign Trade of MOFCOM

Ms. Ji Xiaofeng, a person in charge of the Department of Foreign Investment Administration of MOFCOM

Chairperson:

Mr. Xie Yingjun, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

April 19, 2024

Xie Yingjun:

Ladies and gentlemen, good afternoon. Welcome to this briefing held by the State Council Information Office (SCIO). Today, we have invited Ms. Guo Tingting, vice minister of commerce, to brief you on China's commerce work and performance in the first quarter of 2024, and to take your questions. Also present today are Mr. Yang Tao, director general of the Comprehensive Department of the Ministry of Commerce (MOFCOM); Mr. Xu Xingfeng, director general of the Department of Market Operation and Consumption Promotion of MOFCOM; Mr. Li Xingqian, director general of the Department of Foreign Trade of MOFCOM; and Ms. Ji Xiaofeng, a person in charge of the Department of Foreign Investment Administration of MOFCOM.

Now, I'll give the floor to Ms. Guo for her introduction. 

Guo Tingting:

Friends from the media, good afternoon. Thank you for your long-term interest in and support for the commerce work. Now, I'll brief you on China's commerce performance in the first quarter of 2024. It has been widely noted that the national economy got off to a good start in the first quarter, and the performance of commerce was also generally stable with an optimized structure, contributing to sustained economic recovery and growth.  

Consumption remained the primary driving force behind economic growth. In the first quarter, China's gross domestic product (GDP) increased by 5.3% year on year, with final consumption expenditure contributing 73.7% and driving GDP growth by 3.9 percentage points. Sales of upgraded goods saw rapid growth. In the first quarter, total retail sales of consumer goods grew by 4.7%, with retail sales of sports and entertainment products and communication equipment by enterprises above designated size growing by 14.2% and 13.2%, respectively. Service consumption continued to unleash its potential. Consumers' demand for quality and diverse "experiential" consumption constantly rose. In the first quarter, retail sales of services increased by 10%. Catering consumption remained buoyant, growing by 10.8%.

Foreign trade got off to a stable start. In the first quarter, trade in goods reached 10.2 trillion yuan, surpassing the 10-trillion-yuan mark for the first time in a single quarter, and the growth rate stood at 5%, marking a new high for the past six quarters. The contribution rate of net exports to economic growth rose to 14.5%. In terms of goods, exports of mechanical and electrical products grew quickly, exports of labor-intensive products also performed well, and exports of textiles and garments as well as furniture and its components increased by 5.4% and 23.5%, respectively. Driven by domestic demand, imports of energy and integrated circuits grew by 8% and 14.3%, respectively. In terms of markets, emerging markets remained vibrant, with imports from and exports to Belt and Road partner countries growing by 5.5% in the first quarter. Developed markets showed signs of recovery, with growth in imports and exports related to the U.S. increasing by around 5.5 percentage points compared to the same period last year. As for market entities, the number of foreign trade enterprises with import and export records increased by 8.8% in the first quarter, with the number of private enterprises growing by 10.4%, accounting for 85.3% of the total. A recent survey on key foreign trade enterprises conducted by MOFCOM showed that in March, the proportion of enterprises reporting employment increases reached 88.8%, growing by 1.7 percentage points compared to the previous two months. This indicates further strengthened confidence and expectations of enterprises.

In terms of attracting foreign investment, the "Investment in China" series of activities has been enthusiastically received. The inaugural flagship event alone attracted more than 140 representatives from foreign enterprises and business associations across 17 countries and regions. In the first quarter, 12,000 foreign-funded enterprises were newly established, an increase of 20.7%. As for the investment structure, investment in high-tech manufacturing in the first quarter accounted for 12.5%, an increase of 2.2 percentage points compared to the same period last year. Investment in the service industries closely related to people's lives also achieved rapid growth. In terms of the investment scale, utilized foreign investment reached 301.67 billion yuan in the first quarter, remaining at a historically high level.

Outbound investment maintained stable development. In the first quarter, non-financial outbound direct investment reached 242.92 billion yuan, an increase of 12.5%. Investment in the ASEAN and the EU grew rapidly by 36.7% and 34.5%, respectively. Investment in leasing and business services, manufacturing, and the wholesale and retail industry increased by 45.5%, 36.4% and 14.9%, respectively. The value of newly contracted projects stood at 330.64 billion yuan, an increase of 11.9%, with completed turnover reaching 230.13 billion yuan, an increase of 6.1%.

Next, MOFCOM will continue to thoroughly implement the decisions and deployments of the Communist Party of China (CPC) Central Committee and the State Council. Focusing on the three important positions of the commerce work (namely commerce work being an important component of the domestic economy, serving as a vital link between the domestic and international economic flows, and playing a crucial role in creating a new development pattern), we will strive to continue to expand consumption, ensure the overall stable performance of foreign trade and foreign investment, and promote high-level opening-up. We will also take multiple measures to advance high-quality development of commerce, thus providing strong support for achieving higher-quality economic growth and appropriately increasing economic output.

That's all for my introduction. Now, my colleagues and I are ready to answer your questions. Thank you.