Hong Kong Bauhinia Magazine:

Since the beginning of this year, as China has continued to advance high-standard opening up and optimize the business environment, the performance of foreign-funded enterprises in the country's foreign trade has drawn market attention. Could you give us an overview of how foreign-funded enterprises performed in terms of imports and exports in the first half of this year? And what is your assessment? Thank you.

Wang Jun:

Thank you. I'll invite Mr. Lyu to take these questions.

Lyu Daliang:

Thank you for your questions. In the first half of this year, trade by foreign-funded enterprises in China totaled 7.39 trillion yuan, up 17.1% year on year and marking nine consecutive quarters of growth. As China steadily advances high-quality development and high-standard opening up, with the economy growing stably and the business environment improving, foreign-funded enterprises have shown growing willingness to invest, remain and prosper in China.

First, China's door is opening ever wider, and its opening-up is reaching a higher standard. Stable policy expectations have made foreign-funded enterprises increasingly willing to come and invest in China. Nearly 4,000 foreign-funded enterprises increased their investment in China in the first five months of this year, according to the Ministry of Commerce. In the first half of the year, foreign-funded enterprises posted double-digit growth in both imports and exports, and the number of such enterprises engaged in imports and exports rose by nearly 1,000 from a year earlier.

Second, China boasts a complete industrial system with strong supporting capabilities in its manufacturing sector. Foreign-funded enterprises, with their deep roots in the Chinese market, are operating here to serve the global market and have consistently delivered profits for their investors. This is why they choose to stay. In the first half of the year, foreign-funded enterprises accounted for a considerable share of China's exports, including nearly 30% of exports to the European Union and nearly 40% of those to South Korea. Their share of exports to emerging markets like Mexico and Vietnam exceeded 30%.

Third, China has been driving industrial innovation through scientific and technological innovation. A growing number of multinational corporations have located their R&D and high-end manufacturing operations in China, boosting their global competitiveness. Foreign-funded enterprises have also seen firsthand that they can thrive in China. In the first half of the year, their bonded R&D imports and exports increased 15%, accounting for nearly 80% of China's total. In sectors such as electronic information and new materials, foreign-funded enterprises posted import and export growth of 57.4% and 21.4%, respectively.

It is fair to say that China's opening up presents abundant opportunities. We welcome foreign-funded enterprises to integrate deeply into China's innovation and industrial chains and to share in the fruits of China's high-quality development. Thank you.