Market News International:

Recently, some leaders from European Union countries and institutions have raised concern that China's currency is undervalued, which gives Chinese exporters an unfair advantage. What is the Ministry of Commerce's response to this? And looking ahead to the later half of this year, particularly in the context of ongoing trade tensions and the broader economic environment, how does the Ministry of Commerce view the prospects for trade between China and Europe? Thank you.

Yan Dong:

I would like to invite Mr. Lin to answer these questions.

Lin Weilong:

Thank you for your questions. We have noticed the situation you mentioned. In recent years, under the strategic guidance of the leaders of both sides, China-E.U. economic and trade relations have maintained sound momentum. In the first half of this year, the total value of trade in goods between China and the E.U. increased 14.2% year on year to $447.88 billion. The two sides have great potential for cooperation in areas such as trade in services, technological innovation and the green economy. This results from deep integration and complementarity of industrial and supply chains, and also represents an inevitable trend in the global digital and green transitions and the future development of China and Europe.

Meanwhile, the E.U. has recently introduced a series of trade restrictions against China and hyped up the so-called RMB exchange rate issue. These claims are unfounded and do not serve the stable development of China-E.U. economic and trade relations. China remains committed to letting the market play a decisive role in determining exchange rate while keeping the RMB basically stable at a reasonable and balanced level. As a responsible major country, China will not seek a competitive advantage through currency devaluation. Chinese manufacturing is internationally competitive, and there is no need to boost exports by undervaluing the currency.

China is not the source of the E.U.'s trade and economic problems, but rather a partner in resolving them. Protectionism leads nowhere. Win-win cooperation is the only way forward. At the end of last month, Chinese Commerce Minister Wang Wentao and European Commissioner for Trade and Economic Security Maros Sefcovic co-chaired the first meeting of the China-E.U. Trade and Investment Consultation Mechanism. The two sides agreed on a new positioning of China-E.U. relations as "stable and balanced key trading partners." China is willing to use this mechanism to strengthen dialogue and consultation with the E.U., properly handle differences and frictions, and promote practical cooperation. Through these efforts, China aims to rebalance bilateral trade at a higher level, advance the stable and healthy development of China-E.U. economic and trade relations, and inject greater certainty and positive energy into the global economy. Thank you.